Pretesting Increases ROI

22Feb11

 

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.

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