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Cost Breakdown: What Goes into A TV Advertisement?

A few things have cost variance, like a TV advertisement. Most people think producing a TV advert is out of reach, but the opposite is the case. Although TV adverts have prices that vary from high to low, the lowest prices might not be worthwhile depending on what you aim to achieve.

What goes into television ads is determined by the kind of advert you want to produce and the equipment and talent you need, which then defines your budget. Making television ads can cost as low as $1,000 and as high as $100,000. This article breaks down the cost of television ads and what goes into them.

Main TV Advertising Cost: Breakdown

The cost of a TV advert depends on two main factors: the production of the television ad and the broadcasting of the advert to your targeted audience. The cost of producing the television advert includes creating the ad itself, hiring a professional crew, and an ad agency.

The costs of TV ads production might be pretty high in some cases, but you can still expect them to fall within the range specified above. In comparison, the cost of broadcasting the advert takes the front role in the television advertising cost. It can vary between $104,000 and $1 million.

Keep reading to understand the breakdown of this cost, and who knows; it might be cheap when you strike out some things from the list.

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Average Cost of a TV Ad Production

There are many approaches to take when producing a TV advert. It depends on your team’s creativity and the budget’s extent. Suppose your team of professionals is capable of producing the TV advert in-house. In that case, the cost of production can be as little as $1,000.

While businesses that outsource the production of their TV ad to an ad agency will likely spend between $10,000 to $50,000, additional costs can be incurred when the concept of the TV ad requires a celebrity to play a part in the ad or do a voice-over.

Another thing to watch out for is the length of your TV ad; this will significantly influence your production and broadcast costs. It costs less to create and air an advertisement of 15 seconds than a longer ad.

Average Cost of Broadcasting a TV Ad

This depends on whether it’s a local or national television station. A local TV station will charge you to advertise your content for a minimum of $5 per 1,000 viewers for a 30-second ad. This cost again depends on the show you want to air it on. Different shows have varying prices because of their potential to convert and the show’s rating.

Another major determinant of your broadcasting cost is the number of times you want your ad to appear on the TV station.

Other Costs that Influence TV Ads

Secondary costs indirectly influence the cost of TV ad production. Some include payments to copywriters, directors and assistant directors, props managers, and wardrobe consultants.

It doesn’t matter the length of your TV ad, it will still require a large team to pull it off, and most of these professionals charge per time used on the project. So, consider these costs when planning a TV ad production.

What Determines the Cost That Goes into Television Advertisement?

The cost per thousand (CPM) prices depend to some extent on the desired target audience of your business. If your company sells products for ladies, you would probably want to air your ad on a show with females as its primary audience.

Other factors influencing the cost to televise your ad include where the ad is aired, timing, and viewers’ demographics. It can either increase or reduce the cost of televising the ad. But, these are the main factors that determine the cost that goes into a television ad:

  • Network and TV show: You must consider the TV station you wish to air your ad. This is because TV networks that air popular shows will likely charge more for a slot to advertise your ad.
  • Broadcast or Cable: The prices of both stations vary because of their wide range of audiences. The cost per thousand (CPM) rate to advertise on a local network will cost way less than using a cable network to televise your ad.
  • Period of the Year: There are different seasons in a year. Suppose it’s a political season, and you need to air your campaign; the prices are way more than the regular price. Sports events like the Olympics, Super Bowl, and so on can influence the cost of advertising your ad.
  • Period of the Day: The time of day also influences the cost of placing your TV ad. From 8 pm to 11 pm, the cost of advertising on the TV station will drive the TV ad cost higher.
  • The Airtime: As stated earlier that the length of your TV ad will be a significant factor in the cost of airing your TV ad and its production. Airing a short ad of 15-30 seconds costs less than a 60-second ad.
  • Size of Audience: When you air your tv ad in an urban area, you can reach a wide range of viewers in one ad. So, the cost of advertising in Miami will be higher than that of a rural area TV station.
  • Demand for Slot: The number of advertisers that seek a slot to place a TV ad will drive its cost. For every 30-minute show, four commercial breaks last for 2 mins each. If the demand for ad slots is high, the cost will increase, too.


Additional factors that influence the cost of TV advertising are regional market, consumer behavior or reaction to ads, and timing. Ensure you keep all this in mind, as it will prepare you to know the cost that goes into a television advertisement and how to profit from broadcasting it.

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