Texavision Digital Broadcast Station can increase exposure while simplifying the management of your advertising.

Texavision Per Inquiry and Guaranteed Payout Advertising

by Walter Rosenthal


Per Inquiry advertising is commonly referred to as "PI." Broadcast stations run PI ads for a fee based on

(1) "Guaranteed Payout." On guaranteed payout schedules, advertisers pay cash for a direct response media schedule but receive a guaranteed response rate (their breakeven figure) from the media based on the number of calls that are generated through a dedicated toll-free number that is exclusive to each station or network.


(2) Or based on the amount of sales generated by such advertising. An independent telemarketing company (Texavision) tracks the calls and prepares reports to document the call activity for billing and shipping purposes.


Per Inquiry is a desirable advertising for those who want to test an ad before risking capital on such mediums.


Or an alternative for under capitalized advertisers to have an expanded advertising schedule.


However, PI campaigns are not without risk. Advertisers can pay up to 50% of their sales revenue to the stations/networks, time brokers, and independent telemarketing firms who are involved in the PI advertising process.


Once PI ads prove their effectiveness, it is usually more cost-efficient to convert the broadcast media buying to a traditional paid direct response schedule.


Most stations and networks do not accept PI advertising, so this is not a widely available option for most direct marketers.


Are you a direct marketer who would like to consider per inquiry or guaranteed payout advertising to sell your product or service? Does your broadcast station/network or media property want to consider PI or guaranteed payout advertising as another discount system that you can use to liquidate unsold inventory?


E-mail mrtexavision@gmail.com to discuss the PI and guaranteed payout advertising options for your product, service, or broadcast property.


Frequently asked questions about per inquiry, guaranteed payout, and direct response advertising

A: To begin a per inquiry campaign through our company, advertisers need the following:


Content that meets media guidelines: We can use your existing content if it meets guidelines, or we can produce the content for you. If we produce the content for you, the costs varies based on your demands for a radio spots and television spots.


Independent call center: We work with several call centers that know how to handle per inquiry campaigns and can refer them to you if you work with us. Call center set-up fees range varies depending on your campaign and also include monthly charges. Toll-free number costs vary as well.


Dubs (tapes): We work with professional dub houses and would be glad to refer you our affiliates when we engage in business once your content is finished and the call center is in place.


Deposits: We require per inquiry advertisers to maintain a deposit with our company against upcoming projected charges to the media. This is required with NO exception.


Per inquiry advertising is a viable option for those without a large advertising budget, but you will still need a working budget to launch a PI campaign. First, it is usually necessary to pay for a test of a new ads in order to prove its visibility and conversions. There are also startup costs involved with a PI campaign like production costs, telemarketing set-up costs, and other administrative costs that require capital.


If you have a product/service that is tested, and you can provide documented results of the advertising test, it is easier for our company to convince stations/networks to take a chance on your ad. Stations/networks that accept PI would rather do business with an advertiser and product/service with a documented track record.


PI advertising should not be viewed as an option for those without any budget whatsoever.


It is easier to test a product with a guaranteed payout schedule rather than with a PI schedule, but the same principles mentioned for PI also applies to guarantee payout advertising. You will still need capital to launch a guaranteed payout campaign. Additionally, with a guaranteed payout campaign, you must pay for the guaranteed media schedule in advance.


Testing a product on a single local TV station or cable system is not a good way to determine its financial viability for a wider roll-out. We have found it best to test your direct response products and services in several local markets or on national scale to let the marketplace indicate which regions or demographic groups hold the most promise. For local market tests, you need to run enough media to provide statistically valid measurements.


A 4 to 1 profit margin is necessary, at a minimum. Ideally, you should have greater than a 6 to 1 profit margin in your product or service for your campaign to be financially successful.


Granted, these margins are difficult to achieve, but it is better that you face this financial reality rather than lose your money on a campaign that has no mathematical chance of succeeding.


Many direct response campaigns today are considered highly successful even if they are never profitable on their own, but they open other sales channels for a product. Often the product/service awareness and brand building that occurs with a broadcast PR advertising campaign opens the doors to selling a product or service for wholesale/retail channels. It is not unusual to use response statistics from a PR campaign to show a buyer that your product appeals to their target audience.


You can launch a campaign on a straight PI basis if you can obtain an adequate amount of media time to do so; however, it is difficult. A common challenge is to convince enough stations/networks to take a chance on an untested spot to achieve the critical mass of exposure that you need to be successful.


Is per inquiry and guaranteed payout advertising only available for TV and radio?


Per inquiry and guaranteed payout advertising is most common to TV and radio, but it can be used in any advertising medium, including newspaper, magazine, and direct mail, e-mail, outdoor, and Internet ads.


•Having the necessary profit margins in a product or service to allow financial success


•Convincing stations/networks to test your product or service instead of continuing to run ads for known money-makers


•Finding enough stations/networks where your product or service is profitable for both you and the media to sustain a continuous marketing campaign


We can work with those who already have a spot produced. Ultimately, the stations or networks decide if they will accept the commercials, which in the case of direct response, per inquiry, or guaranteed.


payout ads, must meet both the production value requirements, station/network policy rules, and also appeal to the sales personnel who must accept the commercial for airing.


If you have a commercial that has already been produced but is untested with the media, it will probably be necessary to test your spot. As stated earlier, PI is not usually available for advertising tests.


Texavision has over 30 years of experience producing all forms of advertising commercials, including direct response TV and radio ads. Our company can either produce your ads or refer you to someone who can produce a spot for you.


Texavision likes products and services that have a wide appeal. It has also been our experience that products/services that are popular nationally rather than regionally are the most successful with PI advertising. We strongly favor products and services that can be advertised and sold in both the US and Canada.


IF WE CAN BE OF SERVICE PLEASE CALL US AT (713) 266-1301


Yours and industries media guidelines: We can use your existing spot if it meets guidelines, or we can produce the advertising spot for you. If we produce the advertising ads for you, the costs varies based on your needs for a radio spot and for a television spot.


Independent call center: We work with several call centers that know how to handle per inquiry campaigns and can refer them to you if you work with us. Call center set-up fees range from USD $1,500.00 to USD $5,000.00+ and also include monthly charges. Toll-free number costs vary. We will not handle any per inquiry ads with an in-house call center.


Dubs (tapes): We work with professional dub houses and would be glad to refer you to those we work with if we do business together once your creative is finished and the call center is in place.


Deposits: We require per inquiry advertisers to maintain a deposit with our company against upcoming projected charges to the media. This is required with NO exception.


Per inquiry advertising is a viable option for those without a large advertising budget, but you will still need working capital to launch a PI campaign. First, it is usually necessary to pay for a test of a new ad in order to prove its viability to stations/networks so they will accept it as a PI offer. It is very difficult to find a station/network to run a totally untested PI ad. There are also startup costs involved with a PI campaign like production costs, telemarketing set-up costs, and other administrative costs that require capital.


If you have a product/service that is tested, and you can provide documented results of the advertising test, it is easier for our company to convince stations/networks to take a chance on your ad. Stations/networks that accept PI would rather do business with an advertiser and product/service with a documented track record.


PI advertising should not be viewed as an option for those without any budget whatsoever.


It is easier to test a product with a guaranteed payout schedule rather than with a PI schedule, but the same principles mentioned for PI also applies to guarantee payout advertising. You will still need capital to launch a guaranteed payout campaign. Additionally, with a guaranteed payout campaign, you must pay for the guaranteed media schedule in advance.


Testing a product on a single local TV station or cable system is not a good way to determine its financial viability for a wider roll-out. We have found it best to test PR products and services in several local markets or on national scale and let the marketplace indicate which regions or demographic groups hold the most promise. For local market tests, you need to run enough media to provide statistically valid measurements.


A 6 to 1 profit margin is necessary, at a minimum. Ideally, you should have greater than a 6 to 1 profit margin in your product or service for your campaign to be financially successful.
Granted, these margins are difficult to achieve, but it is better that you face this financial reality rather than lose your money on a campaign that has no mathematical chance of succeeding.


Many PR campaigns today are considered highly successful even if they are never profitable on their own if they open other sales channels for a product. Often the product/service awareness and brand building that occurs with a broadcast PR advertising campaign opens the doors to selling a product or service into wholesale or retail channels. It is not unusual to use response statistics from a DR campaign to show a buyer for a chain store or catalog that your product appeals to their target audience.


You can launch a campaign on a straight PI basis if you can obtain an adequate amount of media time to do so; however, it is difficult. A common challenge is to convince enough stations/networks to take a chance on an untested spot to achieve the critical mass of exposure that you need to be successful.


Per inquiry and guaranteed payout advertising is most common to TV and radio, but it can be used in any advertising medium, including newspaper, magazine, and direct mail, e-mail, outdoor, and Internet ads.


•Having the necessary profit margins in a product or service to allow financial success


•Convincing stations/networks to test your product or service instead of continuing to run ads for known money-makers


•Finding enough stations/networks where your product or service is profitable for both you and the media to sustain a continuous marketing campaign


We can work with those who already have a spot produced. Ultimately, the stations or networks decide if they will accept the commercials, which in the case of direct response, per inquiry, or guaranteed.


payout ads, must meet both the production value requirements, station/network policy rules, and also appeal to the sales personnel who must accept the commercial for airing.


If you have a commercial that has already been produced but is untested with the media, it will probably be necessary to test your spot. As stated earlier, PI is not usually available for advertising tests.


Texavision has over 30 years of experience producing all forms of advertising commercials, including direct response TV and radio ads. Our company can either produce your ads or refer you to someone who can produce a spot.


sTexavision likes products and services that have a wide appeal. It has also been our experience that products/services that are popular nationally rather than regionally are the most successful with PI advertising. We strongly favor products and services that can be advertised and sold in both the US and Canada.


IF WE CAN BE OF SERVICE PLEASE CALL US AT 346-352-4966


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713-266-1301

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