Considering Cable

Do you hear the rumble in the market? That's the sound of independent HME providers shaking off “that's the way it's been done.”

Many providers are preparing for the future with strategic marketing plans to launch new business segments, expand retail, make acquisitions, grow geographically, build new alliances and drive community and consumer visibility — or prepare for sale. Whatever their strategic direction, providers must have a defined methodology for implementation, and advertising is one of the tools at hand. Within this broad spectrum, cable television advertising can provide the exposure that many home care companies are finding they need.

Expense Is Relative

You might be under the impression that cable television advertising is too expensive. Not true. In San Francisco (my area), the fifth largest cable market in the nation, cable advertising can cost as little as $6 for a daytime spot on Fox News Channel with strong over-55 audiences to $96 a spot for CNN's Larry King 6 p.m. slot.

There is no doubt cable advertising is less expensive in more rural areas. But using this method to reach a specific geographic and demographic audience in a larger community can still be very cost-effective. Ad-supported cable now reaches 84 percent of U.S. television homes that advertisers care the most about.

James Kempthorne, president of American Home Care in Riverside, Calif., started cable advertising a few years ago. “We started from the HME perspective that we are retailers. We are referral- and retail-based, and it was imperative that we build our name and services to our community.” The company now advertises on three cable systems and runs from three to 10 spots a week.

American's advertising program includes collateral materials, print advertising, direct mail, yellow pages, education and newsletter insertions. But 60 percent of the company's ad budget now goes to cable. “Cable gives us the ability to achieve our objectives and target specific demographic and geographic areas through the zones and programming. We are in total control of our message. No other medium has had customers coming in to our store saying they saw our ad.”

Across the country, Gould's Discount Medical in Louisville, Ky., has two large, modern HME locations. But according to co-owner Ken Gould, significantly fewer people would know about the business if it hadn't started cable advertising.