Everything You Need to Know About TV Advertising Costs

Cody Cromwell
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The Main Costs of TV Advertising

TV advertising is one of the most cost-effective ways to market. In 2015, TV helped businesses reach more than 94 million monthly visitors and garnered more than $ 1.62 billion in national sales leads, according to research conducted by Chart Intelligence.

Let’s look at the most common costs of TV advertising.

TV Programming Costs: Listeners spend considerable time watching television, and as a result, marketers tend to use this channel to reach their target audience. Advertisers are also allowed to insert commercials in between commercial breaks, which means they don’t run out of prime time at all. In fact, advertisers can schedule their TV programs to run during evening hours, when the majority of the population is at home.

Therefore, TV programming costs are the lowest of all the TV costs, and they are an integral part of the total TV ad costs. Examples of TV programming costs include costs for the traditional linear TV program, which is broadcast to millions of households, as well as the cost for OTT services and digital signage/click-to-view services/television ad insertion serving.

Average TV Ad Production Costs

Television advertising is still a cost effective way of promoting your business.

With this in mind, the cost of TV advertising is often a primary factor in deciding what TV campaign will be the best way to promote a business.

But what are the costs involved in TV advertising and how do you budget for a TV campaign?

Based on a recent survey of select US retailers, there are also a few factors you need to consider to get the most for your money.

Average TV Ad Broadcasting Costs

Advertising on TV is definitely the most effective and strongest advertisement tool that there is. It is very difficult to sell any product or service to a consumer without huge publicity.

A Clear picture of the advertiser is required (color scheme, position of the ad, duration etc). This is the main reason behind spending huge sums on TV advertising.

Factors That Determine Television Advertising Costs

When advertising on television, you can’t expect to pay the same rate as with print media because the marketing objectives are different. Secondly, consumer behavior has changed and there is a larger segment of the population that watches TV. This section breaks down the different factors that are normally factored into the pricing of television advertising and offers some insight into how this affects commercials.

Audience Size

Audience size is one of the biggest factors that determine advertising costs on television. Generally, the larger the audience, the more you will pay per viewer. If your demographic target consists of a specific group of viewers, perhaps age, income, or gender, then audience size has a big impact on your advertising costs.

Everyone knows that the lion’s share of your advertising budget should come from the largest groups you want to target. For example, if your target audience is age 25 to 35, the majority of your budget should come from the commercials targeted at this age group, including any ads on sports. On the other hand, if you target age 55 and over, your budget should primarily be allocated to the commercials that cater to this age group.

60-second Television Ad Cost Estimates by Market 2021

Whether you’re in the production side of the TV business or if you’re a buyer on the buying side, more than anything, you’re after numbers in this business. And if you’re pondering how much it’s going to cost your company to employ an advertisement on a network’s airwaves, then you’ve come to the right place.

The television advertising industry is constantly growing through the use of advanced media delivery techniques and technologies. Interactive television and video on-demand are two of the biggest technological advancements in the television advertising industry in the past few years. A little over a decade ago, an advertisement had to be played 30 times on average to convert the viewer into a buyer. Today, a successful advertisement could be viewed and tracked multiple times for the exact same person.

While viewers don’t necessarily have to be passive viewers to be counted, they have to be conscious viewers in order to make purchasing decisions. And although less expensive means of advertising have recently emerged, marketing on television has proven to be the most effective way to get your product or service into the attention of a target market.

What are the different types of TV advertising?

Factors Affecting TV Ad Cost

There are a lot of factors that can affect the cost of TV advertisements. If you want to know the ad’s impact in advertising, you need to be familiar with these factors.

Competitive Landscape

How does TV advertising work?

TV advertising is in the form of commercials. Commercials are broadcasted to the public through TV channels.

Are you looking to get the best value for your money? Or just looking for ways to cut down on your advertising costs? There are a lot of factors that can affect the cost of TV advertisements. Some of them are:

  • Marketability
  • Broadcast time
  • Type of advertising
  • Benefit
  • Budget allocated
  • Appeals to the audience
  • Platform

Male vs. female target

Channel

Medium (Radio, TV, Internet etc.)

Pros & Cons of TV Advertising

Many businesses still advertise on television because of their large number of potential viewers and the large amount of time that people on the average TV ad. These advantages make TV advertising appealing to many advertisers.

While television advertising’s advantages are great, they’re outweighed by its disadvantages.

%%Advertisers Do Not Know Who’s Watching

%%If a viewer can’t relate to the ad, they may tune out.

%%Advertisers Have No Way of Knowing if the Ad (TV Spot) Is Effective

%%More than likely, people are watching TV for other reasons (fun, relaxation, entertainment) and don’t want to be interrupted.

Pros of TV Advertising

Advantages of TV advertising include:

A TV advertisement gives you maximum reach at a fraction of the cost of print, radio, formal mail, or searched engine marketing. TV ads are generally cost effective for small businesses because you can reach a broad group of potential customers.

TV advertising is common for many industries because, unlike print ads, you can reach the exact type of customer you’re looking for – your demographic target. For example, you can target male ages 18-24 who own Samsung Blu-ray III players and live in the Los Angeles area. TV ads are also affordable because you’re not developing a strategy or creating complex message points like a newspaper ad.

TV ads get customers excited about the product or service. They also help you do a good job of informing the public about your product or service. For this reason, TV ads are becoming increasingly common in golf, spa, and apparel stores (along with other stores). They are also publicized for home improvement products like kitchen redesigning and flooring.

Cons of TV Advertising

TV is still king when it comes to advertising. With the TV screen just about the only way for an advertiser to reach the masses without having to invest into printing and newspaper advertising, TV is a cost-effective and reliable way to promote their products and services.

Although in prior years TV advertising could be used with relative ease as the number of available channels and number of TV sets was greater, increased competition from the Internet has forced the price of ad space up. As a result, the TV market has become more contested and less lucrative.

With the emergence of volume-based marketing by companies such as Amazon and Facebook, one has to question the ROI of advertising on TV. Why spend large sums of money, when every click is worth a dime to these powerhouses?

On the bright side, as competition heats up, there’s a general increase in the quality of programming and the number of channels in TV. And although there’s more competition, you can still reach a much larger audience and get better rates.

Frequently Asked Questions (FAQs)

How do I know? Lets assume there are twelve total million households in the US, and about 600,000 are in the 18-24 year old range. That means there are 200,000 potential viewers in this age range. From the demographic info, you might find that one of the major reasons this target group is missing is because they don’t have cable, so we’ll use the 600,000 target group and assume that they are already watching cable. If we multiply that by the average length of one program (42 minutes), we’ll get 14,400,000, X 42 mins = 528,000,000 minutes of viewing. So between the 14,400,000 target group, and the 528,000,000 minutes, there should be any where between 20,864,000, and 33,433,333 minutes of viewing (15,664,000-33,433,333, X 42 mins).

Does this mean that 528,000,000 minutes of commercial space times 550 companies = 1.9 billion minutes? Probably not, since there are probably several ads that aren’t shown, and it’s not a perfect sample. Does it mean that there is a large amount of commercial time on TV, especially during the day? Absolutely!

Is TV advertising still effective?

Although traditional TV advertising is one of the most effective ways to connect with your customers, the growth of digital media has made the adage of "The customer is always right" take on a new meaning. The ability to connect with your customers on their own terms is becoming the new goal of customer engagement strategy.

This can be accomplished by optimizing your digital presence across various platforms. Your online footprint begins with a well-designed website and creates opportunities to market your business through a variety of digital mediums from social media to retargeting. Read this article to understand how digital advertising can help your brand reach the customers that matter.

Definition

In general, advertising is paid for by an advertiser in order to promote a product, service, employee, or organization to the public.

However, most of the time, the message promoted has nothing to do with the product itself. In this case, we talk about advertising as the process of promoting a cause or a message to the public.

Advertising via Television

Television advertising is one of the most popular mediums that reach millions of households across the country. Although the TV industry has taken a hit in recent years due to the proliferation of digital marketing and mobile app usage, it has far surpassed radio advertising.

How do you create a TV commercial?

TV commercials are not just expensive, time-consuming, and difficult to make, they also affect our lives in a lot of ways. Sometimes they are useful and industry, sometimes even helpful and entertaining and sometimes they're just plain annoying.

Selling products through entertainment has been going on for a very long time and today TV advertisements play a big part in advertising, marketing and advertising the brand. The video, which uses a variety of methods which are:

Romanticism/Seduction: This involves using an actress on the screen, someone who is young, attractive and sexy in the hope of getting into the hearts of people watching and show the audience how the product can solve their needs. This involves using an actor on the screen, someone who is old, unattractive, or perhaps even unsightly, to try and change the way that we feel about something.

A sense of awe and wonder: Certain products are just so amazing that people will stop and stare because they're so amazing. The product has to be able to market itself in this way, and the key is that the product in question is difficult to easily see the product in its usual state or another, just how it looks in the product.

Bottom Line

TV advertising doesn’t have the kind of draw that it used to, but it still remains a viable marketing medium. With the right ad agency, you can use TV advertising to launch a product, generate buzz, and reassure your customers that you’re listening to them.

Television advertisements are much more affordable than billboards and can reach a wider audience. Even the most disruptive startups can and should use TV advertising to showcase their product. It’s a cheap and effective advertising medium that the entire world is familiar with.

Here are some budget and time restraints to keep in mind:

If you’re hoping to launch a new product, television advertising might be the wrong investment. It will take time for your target audience to hear about your product and accept it. If your ad is just introducing a product, you’ll spend too much money and still not reach your target audience. Likewise, if you’re the first in your space, it will be difficult to compete with the heavy hitters… While TV can help to boost awareness, it’s a lot harder to actually move units if you are a small brand.

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TV broadcasting is on its way out and TV commercials are on their way out as well… or at least, that’s the way the rumor is going around. The question is: when they’re out, what will replace them?

TV advertising is an advertising method that allows advertisers to reach their audiences directly through television. Television advertising is popular because it connects the advertiser with their desired consumers. Furthermore, TV commercials are relatively inexpensive compared to other advertising media.

There are a lot of agencies responsible for the management of television advertising in the US. A typical situation where these agencies are utilized is by creating television advertisements for red carpet events.

Despite the fact that this medium is obviously less expensive than other advertising mediums such as the internet, e-mail, or print, advertising agencies are constantly taking a look at new ways to advertise. The high competition in the advertising market sometimes demands agencies to do that. And recently, companies are buying spots in TV commercials rather than paying for a network exclusive which most networks don’t allow anymore.

When thinking of successful advertising campaigns, there are many interesting facets to take note of. One of the most common questions is: how much does an average commercial cost?