Content area
Abstract
The PBA figure is a percentage of profitable airings of the total broadcast booked and aired. The Derma Wand infomercial for national cable received a 76% PBA and for local broadcast stations the PBA was 62%. Based on these extremely encouraging percentages, management is confident that it will be able to profitably broaden the television foot print of the Derma Wand infomercial airings to many of the over 100 U.S. cable channels and the 2218 U.S. broadcast stations on continued basis.
The Derma Wand infomercial offer includes an invitation to the ordering customer to join the DermaVital Skincare Club, which is an auto-shipped 30 day supply of the Company's DermaVital skincare range. The recurring monthly membership price of $33.99 includes a significant profit margin on each thirty-day supply sold. The DermaVital Skincare Club was joined and purchased by 23% of the customers who ordered the Derma Wand Infomercial Offer. On a monthly basis, the DermaVital Club membership will generate increased revenue for the Company. With a sustained and expanded Derma Wand infomercial campaign, ICTV will have the ability to develop a significant on-going revenue stream from a growing membership in the DermaVital Skincare Club.
47% of the viewers of the infomercial who telephoned the in-bound call centers and inquired about the DermaWand offer were converted to a sale. Based on the Infomercial Industry data, ICTV believes with increased airings of the Derma Wand infomercial, the telephone operators and viewers becoming more familiar with Derma Wand offer, a higher conversion rate will be obtained. With increased airings of an infomercial the infomercial industry statistics confirm that in-bound call volume will also increase.