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TV advertising costs have been increasing and many marketers are worried. Learn how to take control of your budget with these simple tips.
The “tv commercial production cost breakdown” is a blog post that breaks down the different costs associated with creating a TV commercial. The article also provides some insight on how to plan your budget for a TV ad campaign.
We’ve all heard about the eye-popping costs of Super Bowl ads, but how much does a typical company spend on television advertising? The good news is that it isn’t in the millions, but advertising on television isn’t cheap no matter how you slice it. In reality, a 30-second advertisement on a major network costs $115,000 on average—and that’s before production expenses, which range from $2,000 to $5,000 on the low end.
However, since these are averages, you may discover that television costs less in your location depending on your campaign’s demands. We’ll go through the aspects that may affect the cost of television advertising in more depth to help you decide whether this is a viable marketing approach for your company.
The Most Important TV Advertising Costs
Television commercials have two primary costs: production and distribution (in this case, broadcasting). The cost of generating the actual television advertisement, such as paying an ad agency and a professional production team, is included in production expenses. It may cost anything from $2,000 to $50,000, depending on the complexity of the project. The major price is broadcasting, which costs roughly $115,000 for a 30-second advertisement.
- Production expenses for television commercials range from $2,000 to $50,000.
- The average cost of broadcasting is $155,000, although it may cost more than $1 million.
Production Costs for Television Commercials on Average
You may make a TV advertisement in a variety of ways, depending on your creative ability and the size of your advertising budget. A team that can develop its own TV commercial in-house may pay as low as $2,000, but a company that outsources to an ad agency for a TV commercial made by pros could spend anywhere from $10,000 to $50,000.
Remember that the duration of your advertisement will have an impact on both production and broadcasting expenses. A shorter ad (e.g., 10 to 15 seconds) will naturally cost less to produce and air than a lengthier commercial (e.g., 30 to 60 seconds).
Costs of Broadcasting Television Ads on Average
Advertisers may expect to spend a minimum of $5 per 1,000 viewers for a 30-second advertising on local television stations. According to Adage, a 30-second advertisement aired nationwide in 2020 will cost roughly $115,000 on average. In 2020, the average cost of 30-second Super Bowl commercial spots was excess of $5.6 million. Of course, the frequency with which you run your ad has an effect on your overall broadcasting expenditures.
Consider other advertising and marketing methods, such as billboard commercials, if you’re on a budget and aren’t sure you want to spend a lot.
Costs of Television Advertising are Determined by Several Factors
Television commercials are charged on a cost-per-thousand (CPM) basis, which is the cost of having 1,000 people watch your ad. The CPM fluctuates dramatically based on a number of variables, the most important of which is geography. Consider the following numbers from Casual Precision, a media firm that specializes in offline advertising, to acquire an estimate for broadcasting a 60-second TV advertisement in various areas (TV and radio).
Market 2020 Cost Estimates for 60-second Television Ads
Factors Affecting the Cost of a Television Commercial
The cost per thousand impressions (CPM) is determined by how appealing the audience is to prospective advertisers. A TV program with a mostly female viewership, for example, will be more appealing to a corporation that sells items largely to women. Additionally, the demographics of the audience, the scheduling of the ad, and the region in which it airs may all influence ad expenses.
The following are the key elements that influence the cost of television advertising:
- Network and TV show: Advertisement spaces on TV networks that run popular programmes will cost extra. For example, if you want your ad to show during “The Big Bang Theory,” you should expect to spend over $285,000 for it.
- Broadcast vs. cable: Broadcast refers to national network affiliates such as ABC, NBC, and CBS that have local station affiliates. MTV, VH1, and TLC are examples of cable channels for which you must pay an additional fee. Because cable targets a more focused and affluent clientele, the CPM for advertising on a local broadcast station is often lower than for cable.
- Season: If a hotly fought political campaign is on the horizon, politicians will be ready to spend a higher-than-usual price for television advertising. Other events, such as highly anticipated sports events (such as the Olympic Games or the Super Bowl), might also increase expenditures.
- Time of day: The best ad positions are between 8 p.m. and 11 p.m., when the majority of people are watching TV. Because of the increased viewing, the cost of advertisements broadcast at this time is often higher than during other times of the day.
- Airtime: The duration of your TV commercial will have a significant influence on the cost of both production and airing. A brief ad (e.g., 10 seconds) will cost much less than a 60-second slot.
- Audience size: Because more advertisers prefer to broadcast their advertisements in major cities in order to reach more people with a single commercial, the cost of advertising in New York City is substantially higher than in a small town.
- Demand: A half-hour program usually has four commercial breaks, each lasting two minutes (equivalent to 16 30-second commercials). Because there are a limited amount of ad places available, the greater the demand, the higher the price.
Remember that the cost of TV advertising may vary based on variables such as the audience’s general demographics, where and when the advertisement airs, the size of the audience, and audience behavioral characteristics such as whether or not viewers can fast forward through commercials. Keeping these in mind will assist you in preparing for fluctuating ad expense bids.
The Benefits and Drawbacks of Television Advertising
When considering the cost-benefit of TV advertising, the pros and disadvantages are a solid place to start. Cons include limited targeting options, the need to entertain the audience, the tendency for people to not pay attention during commercials, limited performance data available, and the high upfront costs involved. Pros include the likelihood that a TV ad will increase sales and viewer engagement, the ability to pair site and sound, and a large audience reach, whereas cons include limited targeting options, the need to entertain the audience, the tendency for people to not pay attention during commercials, limited performance data available, and the large upfront expenses involved.
Advantages of Television Commercials
- Reach out to a vast and diverse audience.
- Advertise on a national scale.
- The ability to communicate a tale that cannot be told via paper or text
- Ideal for companies who want to remain on top of their game.
The Drawbacks of Television Commercials
- Inadequate audience targeting
- People may be watching, but it doesn’t imply they’re paying attention to advertisements.
- Like with pay-per-click (PPC) advertising, the audience isn’t actively looking for what you’re delivering.
- Performance is difficult to monitor and quantify.
- It necessitates a significant upfront cost, which may make it a difficult marketing technique for those just starting out.
Most Commonly Asked Questions (FAQs)
Is television advertising still effective?
According to an Adobe research of 1,000 TV buyers, marketers still consider TV advertising to be more successful than many other prominent marketing routes, such as radio, search, and social media advertising, in 2018 and 2019. They feel it is more successful at creating emotional ties between people and companies. Consumers appear to agree; according to a Gfk/TVB research, TV advertising is the most influential factor in their purchasing choices.
How do you make an ad for television?
Most companies intending to develop a TV ad will be challenged with selecting the correct agency to produce the commercial as well as determining which networks and airtimes are most suited for the company and its goals. In general, designing ad creative, devising an ad strategy, making the TV commercial, and broadcasting the commercial are all steps in the process of creating a TV commercial. Acquire a step-by-step overview of how to get a TV commercial.
Conclusion
Television commercials aren’t the most cost-effective type of advertising. Despite this, it continues to be a popular channel since it can be a highly successful method to spread a message to a large audience, raise brand recognition, and stay top of mind. Expect to spend thousands to design and air a successful TV commercial, depending on a number of criteria such as the network you want to advertise on, the length of the TV ad, and the competition for the time slot.
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The “tv commercial budget example” is a blog post that explains the costs associated with running TV commercials. It details how much money goes into each advertising medium and what you should expect as a return on investment.
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