What’s an appropriate radio advertising test period?
We hear from start-up companies all the time that say, “We are launching this new widget. We want to run a one-week test campaign utilizing radio ads and/or TV advertising. We have $500.00 to spend, and want your cheapest rate per spot. Furthermore, we are expecting 100 calls/leads from that budget. Can you guarantee we will receive that many calls? Can you provide me with some call data from one of your clients in my industry?”
Years ago, my answer would have been a little more politically correct. My answer to that question now is: Take your $500.00, go to Vegas and play roulette. The odds of winning at roulette are much higher than making a short-term, underfunded test successful. You will also have more fun in Vegas, get free drinks and maybe even a couple of coupons to the super buffet.
If your company is like 98% of the other companies out there, you have competition in your business segment. If the competition in your business segment is running TV advertising or radio advertising in your markets, then you will not be able to make short-term, underfunded tests work, even if you say, “CALL NOW” four times with your telephone number. All of your competitors are doing the same thing.
#1 A reliable test starts with choosing the appropriate target markets, markets that you know have a need for your product or service. It is the responsibility of the client to provide that information to their advertising partner.
#2 An appropriate test period is 8-16 weeks in the target markets. Campaigns do not start building any kind of momentum until consumers have heard your message at least five times (that includes direct response radio advertising and direct response channels). With the right frequency of ads, it will take the average listener 4-5 weeks to hear your message five times, so a one-month timeframe for a test is the bare minimum. 2-3 months is going to give you more accurate information and better results.
#3 An appropriate test should utilize the “big fish in the little pond theory”, which means only advertising in markets you can afford to run in for a good length of time and frequently enough to achieve results. Running two spots per day on one station in one market is a complete waste of money.
Keep in mind that we are not some big advertising agency talking to you about GRP’s (gross rating points). I have personally been on the client’s side of the fence, trying to grow a business and maintain acquisition/leads costs. I know firsthand that frequency is very important and will make or break a test campaign. Over the last 11 years, I have seen ZERO underfunded test campaigns work, and I have seen only a handful of short-term tests work. The only short-term tests that worked were hot new widgets that nobody had advertised via TV or radio before. They were also widgets that had not gone mainstream yet. Unless your company fits into that extremely narrow category, plan on budgeting for a 8-16 week test in the appropriate markets.
Next post, I will get into frequency and how to determine what the best rates are for you.
As always, feel free to call our office with any questions you may have about TV or radio advertising. Even if you are not spending money with us, we are happy to help.