Running TV ads can be a highly effective marketing strategy
The average cost to produce a professionally made 30 second national TV commercial typically ranges from $25,000 to $100,000. Regional or local TV ads range from $5,000 to $25,000.
Factors impacting the costs include:
30 seconds is the standard-length companies aim for when creating TV ads. However, costs scale up or down depending on whether you want commercials that are 15 seconds, 60 seconds, etc.
In addition to production costs, buying the airtime to run commercials can cost $200 to $5,000+ per spot depending on factors like time slot, channel viewership, and region.
We’ll break down typical production, talent, editing and airtime costs in more detail later in this guide. But in most cases, businesses should budget at least $50,000+ to produce and run a professional TV ad campaign in a metro area. National campaigns easily reach $500,000+.
While not cheap, television advertising can provide unmatched brand visibility when executed effectively and targeted strategically. Read on for a full breakdown of the pricing, costs and tips to maximize your TV advertising ROI.
What goes into creating a TV commercial? Here are typical elements that make up production costs:
The planning and logistics requires coordination and resources.
The filming and raw footage capture is equipment intensive.
Extensive editing and polishing goes into finalizing the commercial.
When totaling all these elements, it’s easy to see how producing a polished TV ad can run $20,000 to $100,000+ for 30 seconds. Regional ads may allow cutting some corners to hit minimum professional standards for $5,000 to $25,000.
But the level of craftsmanship and polish directly impacts performance and ROI.
Another major cost component is recruiting and paying talent – both on-screen and behind the scenes:
On-Camera Talent Fees
Off-Camera Crew
Securing professional on-air talent and an experienced production crew pays off in polished, engaging ads. But their daily rates quickly add up on top of other production expenses.
Many variables influence the overall investment required to produce a TV ad:
Filming outdoors or at a real location is more complex and expensive than a studio shoot but looks more authentic.
Basic editing and music can suffice for simpler commercials focused on the message. But extensive effects, animations, and polishing gets costly.
15 second spots cost notably less than a traditional 30 second ad with double the concepting, filming and editing time.
Creating a series of commercials instead of just one requires multiplying the production effort across each unique script and visual approach.
The longer the desired filming schedule, the greater the expenses accumulating daily for crew, equipment, locations, etc.
Top tier production houses cost more but also deliver premium quality ad content.
Evaluating these cost drivers enables keeping budgets on track. Let’s examine media buying next.
In addition to production costs to create the actual commercial, you need to purchase airtime slots to run the ads on TV channels.
Factors impacting airtime rates include:
Airtime is purchased based on gross rating points or GRPs – the percentage of your target audience reached multiplied by number of ad spots. Common metrics include:
Media buyers aim to maximize reach and frequency effective within budgets using these metrics.
While complex, at a basic level, primetime spots on major networks range from $10,000 to $600,000 per showing. Compare that to local morning spots for $200 to $1,000.
Work with an experienced media planner to optimize your TV ad scheduling and achieve the best results efficiently.
National TV Advertising
Local TV Advertising
While national campaigns provide unmatched scale, targeted local TV ads in key metro regions you serve can be very effective for a fraction of the costs.
TV ads excel at rapidly building awareness of new products due to their broad reach, sight, sound and motion. Some effective strategies include:
With large upfront production costs, new product launches warrant sizable TV advertising budgets to cut through the noise. But used strategically, TV excels at driving awareness widely and fast.
Here are some tips to keep TV advertising affordable on a small business budget:
While still a significant investment, following these best practices allows smaller brands to get their message on TV effectively.
Daypart refers to the time of day commercials run. Here are typical rate ranges for national commercials:
Overnight and daytime spots are more affordable. But also deliver lower viewership. Primetime offers huge reach despite steep prices.
Evaluate number of viewers and attentiveness against media cost when selecting dayparts. Avoid spending big on spots people may not be actively watching.
Impressions refer to the number of viewers exposed. A common metric is CPM or cost per thousand impressions.
Typical national TV CPMs range from:
For local spots, CPMs may range from:
When buying spots, negotiate to optimize CPM while reaching your ideal audiences at effective frequency. Work backwards from targeting goals to inform budget.
Total costs increase exponentially beyond producing the commercial based on airtime needs.
Some typical TV campaign budget ranges:
Covers producing one 30 second local spot and securing a modest local airtime schedule.
Creates multiple ads customized across a few key metro regions along with airtime nationally.
Robust production of numerous long and short form creative versions and extensive national airtime flights.
Brand response/direct-response spots with dedicated airtime aimed at driving inbound leads or sales.
TV remains one of the most expensive marketing channels. But also generates tremendous brand visibility when executed effectively. Define your campaign goals and targets, then work backwards to build an appropriate budget.
Beyond buying airtime, investing in compelling creative improves performance. Keep these tips in mind:
With so much competing for viewer attention, creatives that quickly punch through are essential for TV ad success.
Pros of Television Advertising
Cons of Television Advertising
TV shines for raising brand awareness but is less precise than digital. Make sure goals align with ability to track ROI.
Here are answers to some frequently asked questions small business owners have about TV advertising costs:
How much should a small business spend on TV advertising?
$20,000 – $75,000 can cover a quality local TV ad along with a metro area media buy. Regional and national costs increase exponentially.
What is the most cost effective length of a TV commercial?
30 seconds is standard. 15 sec ads reduce production costs but also offer less time to make an impression. Avoid anything shorter than 15 seconds if possible.
How much do TV actors cost?
For small business ads, look for talent in the $500 to $2,000 per shoot day range. Avoid expensive celebrities unless they are personal friends willing to do you a favor.
How many times should a TV ad run?
Usually aim to hit at least 70% of your target audience 3-5 times over a flight. Negotiate a package hitting effective frequency levels within your budget.
Can I get a breakdown of production costs before hiring a production company?
Yes, reputable production firms will provide a detailed estimate and treatment for concepting, filming, editing, music and delivery costs for your review before moving forward.
What is the difference between radio and TV advertising costs?
Radio spots are far less expensive – typically $500 to $2,500 to produce with airtime from $20 to $500 per slot. The visual component of TV demands higher creative production and airtime rates.
If planned and negotiated carefully based on campaign objectives, even small businesses can usually afford some level of TV advertising that delivers results.
While not cheap, television advertising offers unparalleled brand-building at scale. With the right creative and targeting, TV expands awareness rapidly.
To recap:
Don’t immediately write off television advertising. With smart planning and execution, you can tailor campaigns to achieve branding goals across key regions and demographics.
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