Pretesting of ads is effective in terms of both actual cost outlays and opportunity costs.

Question

Quizplus · Accepted Answer

Pretesting of ads can help to identify potential issues and improve the effectiveness of the ad before it is launched, which can ultimately save money on advertising expenses. It can also help to prevent missed opportunities and potential revenue losses, which are opportunity costs. Therefore, pretesting can be effective in both actual cost outlays and opportunity costs.

Pretesting of Ads Is Effective in Terms of Both Actual