Everything You Need to Know About TV Advertising Costs (2024)

If you've ever wondered how much a 30-second commercial costs, the short answer is: a lot. TV advertising costs are well-known to reach atmospheric heights, with 30-second Super Bowl ad pricing from $6 to $7 million in 2023. But this is far from average—you can run TV commercials for as little as $1,000 a month locally or around $200,000 nationally.

Keep reading to learn more about TV advertising costs, from the costs of ad production to the average prices for broadcasting a commercial on TV.

General TV Advertising Costs

Everything You Need to Know About TV Advertising Costs (1)

Average cost of TV advertising

The factors that determine how much a TV ad costs involve two main expenses: production and distribution (which, in this case, is broadcasting). Production costs include creating the actual television commercial, such as hiring an ad agency and a professional production crew. Our article detailing how to get a commercial on TV offers more information about TV ad production.

On the other hand, broadcasting or distribution costs are the prices you pay a TV network (whether regional or national) to air your commercial. More recently, advertising on streaming services has steadily become a more viable medium for advertisers to reach their audience.

TV ad production costs vary greatly, but you can expect it to cost anywhere from $1,000 to $50,000. The factors that come into these costs include the scale of your production, whether you're hiring a media production agency, and costs to buy or rent production equipment and studio space.

The cost to broadcast a 30-second commercial on network television averages just under $105,000. These costs vary depending mostly on your chosen broadcast area (regional vs national), time slot (prime-time slots are more expensive), and the length of your commercial.

  • TV ad production costs: As little as $1,000 to over $50,000
  • Broadcasting costs: Averages $104,700, but can go over $1 million for national prime-time slots, or as low as $25 for regional TV, while streaming service ads cost an average of $30 per 1,000 impressions

Average TV Ad Production Costs

You can produce a TV commercial in multiple ways, depending on your team's creative capabilities and advertising budget. Teams producing their own TV ad in-house might spend as little as $1,000 with proper budgeting. This figure often includes costs for buying or renting production equipment such as cameras, microphones, and lighting, hiring talent like actors or voice-over artists, and rent for studio space.

On the other hand, outsourcing to an ad agency for a professionally produced TV commercial will cost closer to $10,000 or $20,000, but it can be upward of $50,000. This cost can increase exponentially if, for instance, a celebrity is hired to appear in the ad, or if your video requires complex special effects requiring additional talent.

  • In-house TV ad productions can cost as little as $1,000
  • Outsourced TV ad productions can cost between $10,000 and $50,000

Keep in mind that the length of your commercial will influence both production and broadcasting costs. So a shorter commercial (e.g., 10 to 15 seconds) will naturally cost less to create and air than a longer commercial (e.g., 30 to 60 seconds).

Average TV Ad Broadcasting Costs

For local television stations, advertisers can expect to pay between $5 and $100 per 1,000 viewers for a 30-second commercial. But when it comes to nationwide broadcasting, costs increase drastically.

Here are some related TV ad cost stats:

  • In 2022, it cost an average of $828,500 to air a 30-second ad during NBC's “Sunday Night Football.”
  • A commercial on “This Is Us” cost an average of $317,981—the highest for any scripted show in the 2021-2022 season.
  • In the 2022-2023 season, the average TV ad cost was $47.14 per 1,000 viewers in a prime-time slot.

Meanwhile, the proliferation of streaming services like Netflix, Hulu, and Disney+ has opened up new avenues for advertisers. Advertisem*nts for these services, also known as over-the-top (OTT) advertising, can cost anywhere between $25 and $75 per 1,000 impressions.

In addition, how frequently you want your ad to appear will also impact your total broadcasting costs. If you're on a budget or unsure you want to make such a hefty investment, consider alternative advertising and marketing channels, such as billboard ads or airing your commercial online through platforms like YouTube.

Also, consider prioritizing reach over frequency of ad placements. Arthur Worsley, the founder of The Art of Living and a former McKinsey Associate who holds an MA in psychology from Oxford University, notes that the impact on conversion diminishes each time an individual views the same TV ad.

Worsley says, “Research has shown that reaching one additional new person with a TV ad is often far more impactful on conversions than reaching the same person more than once. This means expanding the reach of TV advertising to new audiences, rather than increasing frequency to existing audiences, can drive significant results for a fraction of the cost.”

Factors That Determine TV Advertising Costs

Television advertising is priced on a cost-per-mille (mille is Latin for “thousand”) or CPM basis, which is the cost for your ad to be seen by 1,000 people. The CPM varies widely depending on various factors, such as where your ad is broadcasted, how beneficial each audience set is to advertisers, and how many advertisers are willing to pay for limited ad slots, among other factors.

For example, a TV show with a predominantly female audience will be more desirable for a company that sells products aimed primarily at women. Additionally, viewer demographics, timing, and the location in which the ad airs can mean higher or lower ad costs.

These are the factors determining how much it costs to advertise on TV:

  • Network and TV show: TV networks that air popular shows will charge more for advertising slots. For example, you can expect to pay over $800,000 to air your commercial during NBC's “Sunday Night Football,” one of their most-watched programs.
  • Broadcast vs cable: Broadcast refers to the local station affiliates of national networks such as ABC, NBC, and CBS. Cable refers to the plethora of cable and satellite television programming stations, and now in streaming apps, like MTV, VH1, HGTV, CNN, and TLC. The CPM to advertise on a local broadcast station is typically less than cable since cable attracts a more targeted and wealthier demographic.
  • Time of year: Nationwide social and cultural events that affect many people also influence TV advertising costs. If a highly contested political race is coming up, candidates are often willing to pay a higher-than-usual price for TV advertising. Events like highly anticipated televised sports (e.g., the Olympic Games or the Super Bowl), can also drive up costs.
  • Time of day: Prime-time commercial ad spots are in the evening between 8 and 11 p.m. (or from 7 to 10 p.m. in some regions) when most people are watching TV. Given the expanded viewership, the cost of advertising on TV during this period is typically higher than at other times of the day.
  • Airtime: The length of your commercial impacts how much a TV ad will cost in terms of both production and broadcasting expenses. Airtime for a short, 10-second ad will cost much less than a 60-second time slot.
  • Location: Airing your commercials in large, densely populated urban areas allows you to reach more viewers with one commercial, so the cost to advertise in New York City is far greater than the cost of TV advertising in a rural region.
  • Demand: There are typically two or three commercial breaks in a half-hour show, each lasting two minutes. This equates to a total of 12 30-second commercials. With a limited number of ad spots available, the more demand and advertising competition there is, the higher the price.

TV commercial costs vary depending on various factors: broadcast medium, TV show, viewer demographics, audience location, frequency and timing of ad placement, and more. Keeping all of these in mind will better prepare you to understand how much it costs to air commercials on television and how to get the most from your TV advertising dollars.

30-second TV Ad Cost by Cable TV Channel

How much a 30-second TV commercial costs varies drastically based on the desired broadcast location. To get ad rates for regional TV, you'll need to contact local TV stations. However, for estimated advertising costs for cable TV, check out the pricing table below. It includes some of the most popular cable TV channels.

Cable Channel

CPM

Animal Planet

$25 to $100

CNBC

$20 to $90

CNN

$50 to $250

Discovery

$45 to $125

ESPN

$45 to $250

Food Network

$35 to $150

Fox News

$50 to $400

History

$20 to $80

MTV

$15 to $65

National Geographic

$35 to $150

(Source: DX Media Direct)

Cost of TV Advertising Alternatives

Beyond television, several other media channels are available to broadcast your commercial, from billboards to radio. Here is the average CPM for other forms of broadcast media.

Platform

Average CPM

Radio

$6.75

Billboard

$9.25

Newspapers

$46.82

Magazines

$13.24

(Source: Solomon Partners, Ad Quick)

In general, while TV advertising costs a higher amount upfront, its far-reaching range means that its CPM stays relatively affordable. However, CPM only tracks views, which doesn't necessarily equate to higher engagement or more sales.

5 Expert Tips for Maximizing TV Ad Spend

The cost of television advertising is considerable, and especially so for small businesses. So we reached out to media and advertising experts and asked for tips you can use to avoid wasted ad spend and improve your return on investment. Here's what they had to say:

Colin Jeffries, vice president of Marketing and Communications at BrightView Health and host of the Rethink Marketing Podcast, advises that knowing your goal, audience, and times to avoid is key:

  • Define your measure of success: If you want to drive branded search volume to my website, hitting 15% to 20% market penetration with an average frequency of five times per week in a metro of 250,000 to 1,000,000 people will accomplish that. Spending to hit 10% market penetration and a frequency of 3 times per week will waste money, as will spend that hits 20% market penetration and a frequency of 20 times per week.
  • Know your audience: The fewer people who see an ad, the cheaper that airtime is. A spot that airs during an NFL post-kickoff break will get a lot more reach—but also cost a lot more—than a spot that airs at 4 a.m. during an old TV show rerun. The key here is to know your target audience. If they are awake watching reruns at 4 a.m., let's not waste the money on NFL games.
  • Steer clear of artificially inflated seasons: To get the cheapest spots, avoid times when people are watching TV or when the market is falsely inflated. Hotly contested political races mean slots are more expensive for everyone, so it's best to avoid those times altogether.

The founder and CEO of BankingGeek, Max Benz, says to lean into data and automation:

  • Use data to control costs: When it comes to controlling costs, use data-driven optimization. This means leveraging insights gleaned from analytics and utilizing that data to adjust bids, target audiences, and optimize creative messaging.
  • Get matched to your audience automatically: Using programmatic buying for TV advertising increases efficiency by automatically matching relevant ad inventory with your targeting criteria. This can reduce costs and help you reach more members of your target audience.

Pros & Cons of TV Advertising

When weighing the cost-benefit of TV advertising, start with the pros and cons. Pros include the likelihood your TV ad will increase sales and viewer engagement, the credibility offered by the medium, and the ability to reach a broad and captivated audience. Downsides include limited targeting options and tracking data, the tendency for people to ignore or skip commercials, and the large upfront expense involved.

PROSCONS
Reach a wide and captive audienceLess precise audience targeting
Advertise regionally or nationwideTV commercial views don't always translate to increased revenue
Tell a story in a way that isn't possible in print or textNo possibilities for audience interaction
No competition for screen space, unlike with social media advertisingDifficult to track and measure performance
Improved brand perceptions—advertising on TV makes brands appear more successful, legitimate, and professionalRequires a large upfront investment

Frequently Asked Questions (FAQs)

Is TV advertising still effective?

While digital advertising is poised to outpace TV advertising in ad expenditure, recent studies show that consumers find advertisem*nts from traditional media outlets—including TV commercials—more trustworthy than digital ads. Moreover, according to research by Finecast and Amplified Intelligence, TV ads command more active and consistent audience attention than digital platforms, positively translating to more sales.

How can I better target my audience through TV advertising?

The best way to reach your target audience with TV advertising is through intensive research. Dig deep into the makeup of the audiences of networks (local or national) and TV shows to find the audience set that best matches your target market. Then, bid on the time slot when they will most likely be watching TV.

How do I create a TV commercial?

Creating a TV commercial involves building an ad strategy and deciding on a method of production: either in-house or through an agency. Next, you'll need to develop an ad concept and ad creative (copy, scripts, vision boards, and so on), hire talent, produce your commercial, and secure ad slots. If you're working with an agency, they may handle all of this for you. Get the complete breakdown of the steps to get a commercial on TV.

Bottom Line

While TV advertising costs can be lavish compared to other mediums, they've been a mainstay in the advertising world for many years due to their consistent effectiveness. From easily connecting with wide audiences and imparting instant trust to fostering brand loyalty, the benefits of TV advertising often outweigh its costs in the long run.

Now that you know how much TV advertising costs, start creating your own with professionals on Fiverr. You'll find professionals for everything from scriptwriting to voice-over recording at more affordable prices.

Visit Fiverr

Everything You Need to Know About TV Advertising Costs (2024)

FAQs

What is the cost for advertising on TV? ›

The cost of advertising on television varies greatly. The cost would depend on the channels, time band, and ad format. Starting cost for advertising on TV is Rs 200 per 10 sec and goes up to a few lakhs for a 10-sec ad.

How much is a 30 second commercial on Wheel of Fortune? ›

During "Wheel of Fortune," a 30-second ad will run about $1,000. An ad during "60 Minutes" runs $1,500, while "The Price Is Right" will cost $350. A spot during local news will run between $450-$500.

Why is TV advertising so effective? ›

TV and Online Work Together

It exposes that brand to a much larger audience initially than online advertising. TV advertising drives all other forms of promotion. Viewers may be using multiple devices while they watch TV but they are far from being disengaged with the content.

How is advertising cost calculated? ›

The formula to calculate advertising cost is as follows: Total Cost = Number of Impressions * Cost Per Impression OR Total Cost = Number of Clicks * Cost Per Click.

Is TV advertising affordable? ›

One of the most common misconceptions about TV is that producing a TV ad is expensive, but this need not be the case. A great and effective TV ad is possible to make, even on a smaller budget. Here are some tips and ideas that should help you make the most of your budget and get you on your way.

How much does a 1 minute ad cost? ›

To summarize, the average cost of TV commercial production ranges from about $1,200 per minute to somewhere north of $100,000. Typical commercials in the markets our studio serves are generally in the neighborhood of $1,500 to $20,000 for most projects.

How much does a 1 minute commercial on TV cost? ›

TV ad prices for daytime programming range from $500 to $4 per second of airtime; primetime programs can run from $1,000 to $10,000; network commercial rates can be as high as $25,000 per 30 seconds for sports events like the Super Bowl.

How much is a 3 minute commercial? ›

Your video production budget will include estimates for these types of supplemental visuals, including: A 2- to 3-minute professionally produced corporate video typically costs anywhere from $20,000 to $70,000.

What are the weaknesses of TV advertising? ›

Cons of TV Advertising
  • It is costly. Producing a TV advert is expensive. ...
  • Frequency is essential. ...
  • It is difficult to make changes. ...
  • It is difficult to target your audience. ...
  • No guarantee it will be viewed. ...
  • TV advertising is in decline. ...
  • Difficult to analyse and track results.
Sep 23, 2020

What are 5 TV disadvantages? ›

Disadvantages of Television
  • Loss of Education for Children: The children sometimes watch disturbing movies that have an impact on their mental health. ...
  • Inappropriate Visuals for Children: ...
  • Time Wastage: ...
  • Encouragement of Sex and Violence: ...
  • Increased Electricity Bill: ...
  • Influence on Health: ...
  • Separation from Society:

What is the negative impact of TV advertisem*nt? ›

Television advertising increases the demand for goods and services in a negative way and makes more people become consumers of unnecessary goods. Television commercials force people to buy products they do not need.

Why is television no longer the best way to advertise? ›

Digital media is cheaper.

The cost difference between TV advertising and digital marketing methods is tremendous. A 30-second TV ad -- which may or may not reach your ideal audience -- will cost you over one-third of a million dollars ... plus setup costs.

Do TV commercials really work? ›

In a recent study done by tvScientific, ads on television sets (whether streaming or traditional) garner higher ad recall. Viewers remember ads more than 46% of the time, according to the study, compared to other tactics that are far less effective.

What form of advertising is most effective? ›

Word-of-mouth advertising is considered the most effective form of advertising.

How do you manage advertising costs? ›

How to properly manage marketing expenses
  1. Set clear marketing goals. ...
  2. Choose your marketing strategy. ...
  3. Create (or download) a good marketing budget template. ...
  4. Set out your budget. ...
  5. Understand how to spend effectively. ...
  6. Keep your budget up to date. ...
  7. Make smart decisions based on data.
Jan 27, 2023

What are 3 costs that would be included in the cost of advertising? ›

These can include the cost of copywriting, graphic design, commissions, lead generation and broadcast production. An accurate advertising budget includes production, overhead, media buys and commissions.

How much does it usually cost to advertise? ›

On average, small businesses spend $2500 to $12,000 monthly advertising online. While most small businesses pay $10,000 on online advertising yearly, more than 37% spend less than this amount annually.

Why are TV ads so expensive? ›

The factors that determine how much a TV ad costs involve two main expenses: production and distribution (which, in this case, is broadcasting). Production costs include creating the actual television commercial, such as hiring an ad agency and a professional production crew.

What is the cheapest way of advertising? ›

Practically free marketing ideas
  • Host classes and events. ...
  • Run informative webinars. ...
  • Attend industry/networking events. ...
  • Host a social media contest or giveaway. ...
  • Do an in-store business card drawing. ...
  • Set up a customer referral program. ...
  • Join in on local events or contests. ...
  • Get some awesome business cards.
Feb 1, 2023

Who pays the most for TV advertising? ›

In 2021, life and entertainment was the industry with the highest TV advertising spending in the United States, reaching 10.1 billion U.S. dollars.

How many ads in one hour of TV? ›

What is the average length of commercial breaks in a 1-hour TV show? According to data made available by Statista, the average time for commercials made available by the main TV channels in the US ranges from 12 to 17 minutes per hour.

How much should you pay for ads? ›

The U.S. Small Business Administration recommends spending 7 to 8 percent of your gross revenue on marketing [source]. There is also a general rule of thumb that you should aim at spending between 2-5% of your sales revenue on marketing.

How much does a 30 second video ad cost? ›

How much does it cost for a 30 second commercial? The truth is that most promotional videos cost about $3,000 to $5,000 per finished minute. This is an average number of how much the agencies may charge for a 30 sec video. Yet, many companies are ready to pay more for high-quality content.

What TV show charges the most for a commercial? ›

Sunday Night Football (NBC) and Thursday Night Football (FOX) were the most expensive shows for broadcast TV advertising during the 2020/21 season in the United States. Data showed that 30-second spots during these programs were priced at 783.7 thousand and 624.6 thousand U.S. dollars, respectively.

How much does a Super Bowl ad cost? ›

This year, brand marketers will pay a record $7 million ($233,333 per second) for in-game spots during Fox Sports' telecast of Super Bowl 57 on Feb.
...
Commercial Cost Over Years.
YearCostToday's Cost*
2021$5.5 million$5,940,150.20 million
2022$6.5 million
2023$7 million
11 more rows
Feb 10, 2023

How much do FB ads cost? ›

Facebook Ads CPM (Cost Per 1,000 views) – $14.9. Facebook Ads CPC (Cost Per Click) – $0.44.

How much does a 30 second ad cost on Fox News? ›

Fox News' Tucker Carlson Show Boasts Most Expensive Cable News Ads, Study Finds. During the months of April, May and June, the average price of a 30-second ad on Tucker Carlson Tonight was $13,779, the highest rate on cable news, SMI said.

Why are TV commercials 30 seconds? ›

In the early days of TV, ads were generally 60 seconds in length, but rising prices and the loss of cigarette advertisers in 1971 prompted the move towards the :30. Since then, digital has opened up a new world of video advertising.

Why are commercials 30 seconds long? ›

30 seconds is the right amount of time to make a television commercial that's creative, memorable, and engaging enough to entice the viewer to learn more—which is to say, to conduct research online, to pick up the phone, or to drive to the store and purchase the product or service.

What are the three challenges in advertising? ›

Reaching the right targeted audience. Allocating enough budget. Scalability.

What makes bad advertising? ›

Negative advertising is a type of advertising that focuses on competitors' weaknesses and is presented in the form of speeches, commercials, interviews, articles, etc. It involves spreading negative facts about someone, deteriorating their reputation, and disqualifying them in the eyes of buyers.

What is the biggest drawback of advertising? ›

Disadvantages of Advertising
  • Cost - One of the major disadvantages of advertising is the cost involved in the entire process. ...
  • False claims - some ads make false promises and keep customers in the dark. ...
  • Price Impact - When a company uses various advertising channels, it adds costs to the product.

How much does a 30-second ad cost on Fox News? ›

Fox News' Tucker Carlson Show Boasts Most Expensive Cable News Ads, Study Finds. During the months of April, May and June, the average price of a 30-second ad on Tucker Carlson Tonight was $13,779, the highest rate on cable news, SMI said.

How much does it cost to advertise on TV for 30 seconds? ›

Broadcasting costs can be as cheap as $15-$25 for 30 seconds in a small market, or thousands of dollars in large markets. But of course, you cannot buy just one spot. Hence, you'll be buying a package of spots.

Is it cheaper to advertise online or on TV? ›

Which advertising medium is more affordable? When it comes to identifying which advertising medium is more affordable, the cost of internet advertising is relatively cheap. Internet ads can be as little as $0.10 per day, while the price of a television commercial is around $1,000 per 30-second spot.

Top Articles
Latest Posts
Article information

Author: Pres. Carey Rath

Last Updated:

Views: 6047

Rating: 4 / 5 (41 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Pres. Carey Rath

Birthday: 1997-03-06

Address: 14955 Ledner Trail, East Rodrickfort, NE 85127-8369

Phone: +18682428114917

Job: National Technology Representative

Hobby: Sand art, Drama, Web surfing, Cycling, Brazilian jiu-jitsu, Leather crafting, Creative writing

Introduction: My name is Pres. Carey Rath, I am a faithful, funny, vast, joyous, lively, brave, glamorous person who loves writing and wants to share my knowledge and understanding with you.