When pricing a
television commercial, you need to weigh the costs of two
separate things: (1) the cost of producing the commercial,
and (2) the cost of airing it.
It has been estimated that the average cost of producing a
30-second national TV commercial is nearly $350,000. But
before you panic, understand that like any other form of
advertising, a television commercial can be as simple or as
complicated as you want to make it. Not surprisingly, the
cost to produce the commercial goes up as the quality and
complexity of the commercial increases.
Small- to medium-sized businesses cannot afford to invest
$350,000 in a single commercial. But, decent quality TV
commercials can be produced for as little as $1,000 if you
know where to look. The best place to start is with
freelancers or small production agencies.
A word to the wise: Some local television stations may
offer to produce a commercial for you at a highly
discounted (or even free) rate if you agree to advertise on
their station. Don't do it! The quality of these
commercials is usually very poor compared to those that are
professionally produced. A poorly produced commercial can
have a highly detrimental effect on your television
advertising campaign's effectiveness and may leave viewers
with the idea that your company is cheap, cheesy, and out
of touch.
The second cost involved in television advertising is the
price you will pay to run your commercial. Commercial time
is sold in 30-second spot blocks. The cost of a 30-second
spot varies according to the number of viewers expected to
be watching it.
The standard half-hour of television contains 22 minutes of
program and 8 minutes of commercials - 6 minutes for
national advertising and 2 minutes for local. National
advertising is obviously your most expensive option, but
even then the rates vary by Nielsen-rated viewership.
Highly-watched programs can command rates in the millions
of dollars. For example, a 30-second spot during the 2005
Superbowl sold for $2.4 million. Commercials during
less-watched programs are more affordable, but the cost of
those commercials may still run in excess of $100,000 per
30-seconds.
Most small- to medium-sized business owners find that local
advertising fits better with their budgets and marketing
goals. A 30-second time slot in a medium-sized market can
be purchased for as little as $5 per 1,000 viewers, meaning
that you could easily expect to pay less than $100 per
commercial slot. Even cheaper rates may be available for
off-hour programming.
The best advice is to avoid surprises by checking out how
much it will cost to air your commercial locally before you
shell out the money to have it produced.