TV ads are a great way to advertise a product or service. Advertising on TV boosts visibility and may lead to a more extensive fan base. But if you've never produced a TV Commercial before, you may be wondering what the real cost of TV advertising is.

The price depends on various factors, such as the length of the commercial, the level of editing, the complexity of the ad, and more. Believe it or not, a 30-second ad can be quite pricey, so you should prepare your budget if you're planning to invest in a commercial.

But how much exactly does television advertising cost? If you're ready to invest in a television advertising campaign to build brand awareness, this post will tell you more about the approximate prices you'll have to pay, so let's get started!

How Much Does TV Advertising Cost?

Before establishing your company, you were probably looking for the amount of money necessary for starting a business. Now that your brand is up and running, you want to make it known to the world, so you want to learn more about the costs of TV ads.

The truth is that the price of a TV ad varies from one case to another. In fact, you'd be surprised to find out how varied the price range is among businesses that have already paid for TV advertising.

Based on multiple factors, such as the necessary editing and the complexity of the shoot, CTV advertising productions can be anywhere between $1,000 and $50,000, although they sometimes exceed this amount. But what costs more is broadcasting. Even if you get past the production stage and your TV commercial is ready to see the light of day, you still have to consider the broadcasting price, which can go up to $105,000. This is the case even for ads that last only 30 seconds.

However, other aspects can also influence the overall cost of your TV ads, such as:

The Super Bowl – It shouldn't be a surprise that TV advertising rates for the Super Bowl are very high. After all, everyone is watching TV at the edge of their seat during this event, so it only makes sense that companies are trying to air their commercials when the Super Bowl takes place. Well, broadcasting your TV ad during the event is very expensive, with a 30-second spot being a few million dollars. In fact, a company had to pay $5 million on average to have their ad broadcast during the 2020 Super Bowl LIV.
TV Streaming Services – Businesses are aware of the rise in popularity of streaming services, so many are trying to bring their advert to these platforms. Getting an ad on a streaming TV service is also known as placing “OTT ads”. In general, these ads cost about $30 per 1,000 impressions.
The NBC Sunday Night Football – Some companies also try to have their TV ads shown during the Sunday Night Football event. This may cost about $800,000.

What Influences the Overall Cost of CTV Advertising?

Before you can estimate how much you have to pay for a TV ad, you must take into account the different factors that influence the rate. These include:

The time of the day or year
The time slot demand
Where you're airing your commercial
Broadcast vs cable TV ads
How long your TV commercial is
How popular the TV show and network are

Various Types of Ads Based on Budget

The good news is that you can adjust your TV advertising campaign based on your budget. Even if you don't have the finances of large companies yet, you can still have your advertising needs met by finding a TV ad option that suits you. Producing a 30-second ad requires creating a script, hiring talent, filming, editing the material, and more. Each additional element you need will add to the cost of your commercial.

But if you're looking to minimize your advertising spending, you can do it, except you have to sacrifice a few things. Let's take a look at some types of ads you can get depending on your current budget:

Low-Budget Ads

These ads are quite simple. They have a basic and simple script and use a few production aspects. The filming is pretty straightforward, and the editing is minimal as well.

These ads are ideal for newly established brands that have little money, as well as companies that want to save some cash while advertising their products and services. They are quite cheap, usually costing from a few thousand dollars to $10,000.

At the same time, these ads are less likely to make an impression, as in some cases, it's obvious that less money and work went into them.

Mid-Range Budget Ads

If you don't mind spending a little more than $10,000, you can go for mid-range budget ads. They involve more work and elements. For instance, you may hire expert script writers and storytellers, as well as professional actors and voices. Moreover, you may opt to have your commercial edited more after the production process ends.

In general, costs for this type of ad can go up to $50,000. Still, it has a higher potential to bring the desired results and reach your target audience.

High Budget Ads

High-budget ads are ideal when you have more money to spend on your marketing campaign. As you can imagine, they are more complex and do not shy away from using as many resources as possible to make the commercial successful.

These ads involve celebrities and actors, more complicated scripts, post-production work, and perhaps even more airing time. Firms can expect to pay more than $50,000 for these ads.

Different Costs Involved in Making a TV Commercial

There are several phases to producing a TV ad, as well as various costs that you should take into consideration before you start working on connected TV advertising. Let's see what the overall costs will be when you decide to broadcast TV commercials.

Pre-Production Costs

Before the video production for your TV ad begins, you will have to do some administrative and creative work. This also requires money, and it's known as the pre-production phase. It involves multiple aspects, such as:

Auditioning voice-over artists or actors and hiring them
Obtaining the required legal clearances, permits, and insurance
Finding the best setting for filming
Working on set construction and designs
Finding experienced and skilled scriptwriters, directors, and other experts
Developing a concept for the ad

All of these things will bring their own costs, so you should be prepared financially before you even start putting together your CTV ad.

Production Costs

Obviously, there will be several costs you must take care of during ad production. The production step is different for everyone, as the complexity of the commercial influences it. The length of the production process, as well as the ad's details, can all lead to more or less costs. Here are some things you may have to spend money on when producing a new TV commercial:

Hiring talent, including actors and voice actors, as well as extras
Operating on the set and managing it
Paying your crew, such as the lighting technicians, camera operators, directors, and more
Renting your filming gear
Renting the location where you're filming the commercial

Post-Production Costs

Don't think that everything is over when you wrap up your ad production. In fact, there are still a few costs that you must take care of. Here are some of the things you may have to pay for once the filming concludes:

Correcting or enhancing the color of the material you filmed
Editing the footage and perfecting it
Formatting the ad for various CTV platforms and TV standards
Using licensed music or editing and mixing audio
Test-screening the material and marketing it
Using visual effects, CGI, and similar elements

How Much Do You Have to Pay to Continue Broadcasting an Ad?

Now, you may be thinking that once you are done filming for your TV campaign, you don't have to worry about money anymore. However, additional fees are involved when you want to keep using the commercial. Knowing this can help you prepare a budget and adjust your marketing strategy accordingly.

If you want to continue your national TV advertising, you'll have to take care of recurring costs. This adds to the amount you already paid to prepare, shoot, and edit the commercial. But bear in mind that you will usually pay a lot for every extra 30 minutes of airtime. This applies even if you do not work with a production agency. For instance, you may end up paying over $300,000 to have more airtime.

If you also opt for online advertising, the same principle applies. Continuing your advertising campaign will bring extra costs. Basically, you may expect to pay between 5 cents – $3 per qualified visitor.

Cheap vs High-Budget TV Ads – Which Is More Profitable?

The goal of a TV ad is, of course, to reach your target audience, which then leads to generating TV advertising revenue. The success of your campaign depends on choosing the right type of ad for your company, as well as paying attention to the complexity, storytelling, editing, and quality of your commercial.

That being said, you may be unsure whether you should invest in a simpler or more high-budget TV ad. The key to your success is finding balance.

As you may expect, a simple TV ad is more pocket friendly. If you're a new business that didn't get the chance to expand and build a large budget, chances are you won't be able to afford the high-end ad options. However, simple TV ads make sacrifices to keep the prices low, meaning it will be difficult to beat the competition and keep the ad compelling.

On the other hand, high-budget ads might be more appealing and one step ahead of the competitors. Still, they involve high costs and a low return on investment, which is not ideal when you're not financially prepared.

This is why you should consider collaborating with a marketing agency that can help you craft the best ads for your brand and maintain your budget goals.

The Benefits and Drawbacks of TV Advertising

Television advertising is something many businesses aspire to do in order to reach their target audience more easily. Although they can bring a lot to the table, they also have a negative side that you should be aware of before spending money on advertising. Here are the pros and cons of TV advertisements:

Pros

Ads let you tell stories
They make it easier for you to reach your target audience
Products and services advertised on TV are seen as more reliable and trustworthy than online ones
You don't have to compete with other brands for screen space like you would on social media

Cons

They are very expensive
Tracking the success of your TV commercial production is a challenge
It's not guaranteed that a TV ad view will lead to more sales
It's harder to target specific audiences

How to Make the Best of Your Advertising Budget

Whether you're a new company or a well-established firm working on a rebranding strategy, there are a few things you can do to achieve the desired value for the money you spend. Here are some tips that can help you out:

Don't forget to integrate your ad across various platforms and boost its reach this way.
Get to know what your target audience is so you know how to place ads.
Measure how effective your ad campaign is with data analytics.
Invest more when necessary to make your commercial more successful.

Final Thoughts

TV ad campaigns can be very pricey. You will have to handle pre-production, production, and post-production costs. Not to mention that you'll also pay to have your ad broadcast during specific times or to have it broadcast for a longer period. All in all, with a good strategy, you can have the perfect commercial for your brand that sticks within your budget and reaches the right audience.

StartMotionMedia

What Is the Real Cost of TV Advertising?

How Much Does TV Advertising Cost?

What Influences the Overall Cost of CTV Advertising?

Various Types of Ads Based on Budget

Low-Budget Ads

Mid-Range Budget Ads

High Budget Ads