Pros and Cons Another thing the experts agree on is the cost of a TV-generated inquiry is higher today than it was 10 years ago. Often a lot higher, but still not prohibitive. Betterliving has used TV advertising for more than a decade, Stone says. “The average lead cost when we started was $9 or $10,” she says. “Now it’s $70 or $80.”
Yet TV advertising remains an affordable and effective option for many home improvement contractors. Thirty-second spots, for instance, cost Atkinson $3,000 to produce. His 60-second spots cost $5,000 and a two-minute spot runs $7,000. Sherman estimates that a half-hour infomercial can be produced for as little as $10,000.
Once you’ve got the creative, it’s a matter of buying a schedule that fits your budget. According to Sherman, you can start a program in a smaller market for some $4,000 a month. A major market requires $10,000. He emphasizes that this gets things started, with enough TV exposure to see results. “We can place that advertising and make the phones ring,” he says. “You may only get leads one week a month, but you’ll get leads you can use to supplement your other programs. You’ll be able to see the benefit of it and go from there.”
In addition to leads and public awareness, TV produces important ancillary benefits that are harder to price out. For instance, you can add all those names that pour in from TV advertising to your marketing database. And listing an Internet address with your commercials will drive traffic to your Web site. Companies have discovered that many prospects who may not immediately pick up the phone will instead visit the Web site. “Hits go up tremendously,” Jimmink says. —Jay Holtzman is a freelance writer based in Jamestown, R.I.
Television Statistics According to the A.C. Nielsen Co., the average American watches more than four hours of TV each day (28 hours per week, or two months of nonstop TV-watching per year). In a 65-year life, that person will have spent nine years glued to the tube.
Home Viewing Percentage of households that possess at least one television: 99
Number of TV sets in the average U.S. household: 2.24
Percentage of U.S. homes with three or more TV sets: 66
Number of hours per day that TV is on in an average U.S. home: 6 hours, 47 minutes
Percentage of Americans who regularly watch television while eating dinner: 66
Number of hours of TV watched annually by Americans: 250 billion
Value of that time assuming an average wage of $5/hour: $1.25 trillion
Percentage of Americans who pay for cable TV: 56
Number of videos rented daily in the U.S.: 6 million
Number of public library items checked out daily: 3 million
Percentage of Americans who say they watch too much TV: 49