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By: Tvlowcost  05-Apr-2012
Keywords: Advertising Agency, Outdoor Advertising, Fmcg

Pretesting Increases ROI

In NZ the average 30" ad costs around $100,000 to develop. Suppose too that the media spend on the average ad is $400,000, so the total advertising budget per ad is $500,000.

From international research and testing over 3,500 ads worldwide, irrespective of category, type of advertising, country or media, only about 30% of the finished ads are very effective (Source: Admap 2003).

Pretesting an ad costs around  $15,000 for 2 groups. By pretesting you are significantly increasing your ad's chances of success. In fact, the ROI for a pretest  has be calculated at 900% if you get it right! (Source: Admap 2003).

TVLowCost includes pretesting in our all-inclusive TV Packs. We always provide 360°degree strategic creative and at least 3 concepts to be pretested.

How many times has your agency 'sold' you an idea? Pretesting tells us which ad will most likely make consumers buy versus being sold to.

The information in this article was current at 27 Mar 2012

Keywords: Advertising Agency, Fmcg, Outdoor Advertising, Pharmaceutical Brands, Radio Advertising, Radio Network, Tarps, Tv Production

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