How Much Does Local TV Advertising Cost?
Local TV advertising offers a chance for local businesses to advertise specifically to their market area. For local businesses, it does not make sense to advertise on a regional or national level. Advertising on television is one of the best ways to reach your target audience. You can do this by choosing on which channel you would like to air your commercial, during which shows would fit your product or company the best, and how often the commercial runs. For example, if you were featuring a product or service for children, airing on a cartoon channel would be your best option. Thankfully for local TV, there are many local advertising options of which you can take advantage. The cost will really depend upon the geographical location, the length of the commercial, the channel, and other factors.
How much is it?
- TV advertising is going to vary greatly based on your geographical location and the audience you are trying to reach. A commercial that runs late at night in the middle of Iowa will cost a lot less than a commercial running during a prime time show in New York City. To properly budget, a local TV ad could be anywhere from $50 to as much as $3,000 for a 30-second spot.
- A top 10 market should budget at least $4,000 for a 30-second spot.
- Prices during a 4 p.m. primetime show and local news segment generally average anywhere from $150 to as much as $1,500. A 30-second commercial is going to cost the most during the 6 p.m. to 7 p.m. hour.
- Gaebler.com claims that most businesses should be prepared to pay around $5 per 1,000 viewers. The average business pays a pinch less than $100 per commercial.
What is going to be included?
- Local TV commercials will generally prefer 30-second spots. While you can run longer commercials , most networks prefer a 30 second run. Common lengths include 10, 15, 30 and 60 seconds.
- Stations generally will want you to pay up front and commit to a multiple-week schedule.
- Commercials will be run during a certain time frame that you designate, such as 6 a.m. to 12 a.m.
What are the extra costs?
- Producing a new commercial can greatly vary depending on the type of commercial that you want. If you are just looking for something simple on your local affiliate, plan on budgeting around $500 to $2,000 for something that is created by a novice freelancer. SEE: “How much does video production cost?“ Higher-end commercials can cost as much as $20,000 or more.
Factors that influence the price:
- The station and network on which you want to broadcast will make a huge difference. Advertising on a channel such as NBC will be more expensive than a lesser known channel.
- The audience that you would like to reach will determine the time slot of the advertisement which will in turn affect the price.
- Advertising that is aired during busy times will cost much more. Events such as the Super Bowl are known to have the most expensive commercial slots.
- Your geographical location will play a part in determining that price. The closer you are to a large city, the more expensive the advertising will be.
- A 30 second commercial will be more expensive than a 15 second commercial.
Tips to know:
- All channels are going to have their own demographic. Whether you want to work directly with the affiliate or a media buying service, it is so important that you know your demographic before buying space.
- Local television channels may offer steeply discounted commercial production if you purchase a package up front. If you go this route, do keep in mind that it is best to see what kind of work that they have done in the past. Experts warn that this route can often make your work look cheap.
- Chron.com has a write up on what you can do to purchase local commercials in your area.
- Cable TV networks are going to cost less than your local channels because they have a lower reach.
How can I save money?
- On average, the more space that you purchase ahead of time, the less each commercial will cost. Signing long term deals can often save you more than 10%.
- Ads that are ran during reruns can cost less than a new episode. Make sure that you know when your ad is going to run.
- Some channels may allow you to run 10-second or even 15-second spots. This can cut your costs in half if you want to test your markets.
- Entrepreneur.com claims that the best time to purchase local TV ads is during the first quarter. This is because most sales agents are scrambling to make up for their holiday expenditures.
- Do not feel that you have to pay the full price! There is always room for negotiating.
- Because these commercials can potentially bring in business, they can eventually pay for themselves.