How are TV Advertisements priced?

How are the results from advertising on local TV?

Also, any other advice/tips on this would be helpful.

Edit: How much money would you reccomend keeping aside for TV Advertisements?

Hello,

We've actually done some research on this and decided against it.

The TV space is not all that expensive. The production of the ads is
the most expensive part about it. Of course, it depends on the
network and the time slot you pick. Primetime and superbowl are
pricy,
of course.

Any ways, when we were doing it we were planning on having a celeb
endorcement. The price was about $3,500 per hour for who we were
hoping to use which is not all that bad. However, added up it would
have been to expensive to generate a return even over the course of
a year judging from past campaigns by other companies and projections,
thus decided against it.

Register.com does this every once and a while and Affinity has in the
past I think... I don't see it being something you can make a return
off.

Originally posted by midphase-Dan
. . . I don't see it being something you can make a return
off.
Unless you have deep pockets and commit to the long term. TV advertising is not so much about generating sales, as it is about building brand awarness, and that takes a long time. Of course the ultimate goal of increasing brand awarness is more sales, but it's not a hit_and_run approach. Just think of companies like Coke and McDonald's, and the untold billions of dollars they've pumped into building their brand awarness.

Webhosts thinking, "gee, it costs us 10k for the ad production, and 25k/mth to run the ads - therefore i need to make 35k more in sales for the 1st mth to pay for this", are not thinking in the right direction, about increasing brand awareness. So your ROAI (Return On Ad Investment) won't be immediate and the result of your increased brand awarness might not pay off until down the track etc.

Originally posted by Aussie Bob
Unless you have deep pockets and commit to the long term. TV advertising is not so much about generating sales, as it is about building brand awarness, and that takes a long time. Of course the ultimate goal of increasing brand awarness is more sales, but it's not a hit_and_run approach. Just think of companies like Coke and McDonald's, and the untold billions of dollars they've pumped into building their brand awarness.

Webhosts thinking, "gee, it costs us 10k for the ad production, and 25k/mth to run the ads - therefore i need to make 35k more in sales for the 1st mth to pay for this", are not thinking in the right direction, about increasing brand awareness. So your ROAI (Return On Ad Investment) won't be immediate and the result of your increased brand awarness might not pay off until down the track etc.

I know that ;) But, the little thing is: establishing a household name for a hosting company is generally not something that can be done. Hosting is to new of an industry and to much of a nitch, not everyone needs, wants or will make a website.

Mp doesn't make a return on most of our signups right away, and I know all about ROI. The fact of the matter is establishing a "branded" name in hosting won't happen if your target is people outside of hosting.

Everyone on WHT knows who Interland is... Ask on the street and no one will.

Also $35k for an ad on TV the first month isn't going to happen :)

X by 2 and you might be coming close. That again depends on the
kind of commercial, if you do it right or not. I don't see a point to a cheap looking commercial, makes your business look cheap. If you do it right, get a celeb into it and make it look good :)

Dan