Most business owners are hesitant to spend on TV commercials simply because there is a pervasive false assumption that such ads are absurdly expensive. Running a commercial on a national broadcast during prime time will cost a pretty penny yet local TV ads are relatively affordable.
This is your inside look at the expenses involved in running ads on local TV.
TV Advertising Might not be as Expensive as Assumed
If you own or manage a small to medium-sized business, it is not in your interest to shell out millions of dollars to air a commercial during the NBA Finals or another uber-popular national event. Rather, a better use of your money is to spend on local TV ads. Though few know it, it is possible to run a commercial on TV for merely a couple thousand dollars per month or possibly less.
Airing a one-time commercial on a local channel might cost as little as a couple hundred dollars. Alternatively, running TV commercials at the national level has the potential to cost several hundred thousand dollars or more.
The True Cost of Advertising on Local TV
The primary factors that determine the cost of airing an ad on local TV are production and distribution. Simply put, it costs money to make a TV commercial. Once funds are invested in filming the commercial, additional money is required to perfect the ad and then pay to air it.
Producing the spot requires an investment in recording technology, the assistance of a professional production specialist or team and an ad agency. Even a basic bare-bones commercial aired on local TV is likely to spur production costs of a thousand dollars on up.
The production scale, the potential reliance on a media production specialist and the cost of production equipment all shape the aggregate cost. Factor in the cost of potential studio space and it is easy to understand why so many businesses go to great lengths to minimize commercial production costs.
The Cost to Air a Local TV Ad
Most people are unaware that it costs six figures to broadcast a commercial of merely 30 seconds on network TV. Though the commercial’s time slot and the extent of broadcast area certainly shape the total cost, it is not financially prudent to pay the hefty sum necessary for national exposure.
Every business owner should be aware that it is possible to air an ad on local TV for as little as a couple hundred dollars or possibly even less. Some small markets are even willing to air one-time commercials on behalf of small businesses for under $100.
Reach or Frequency? That is the Question
As a business owner, manager or marketer, it is your responsibility to determine if it is better to air a one-time ad that reaches a significant number of locals or repeatedly air the same ad or different ads at a high frequency. Keep in mind that the impact of the ad decreases each time it is presented to the viewing audience. In general, it is better to reach a large number of people with a single ad than reach a small number of people at different points in time with ads aired at a high frequency.
The moral of the story is that the commercials which reach more people make more of an impact on subsequent conversions versus those that connect with the same viewers over and over again. It simply does not make financial sense to repeatedly pay for commercial airtime unless you have shelled out a significant amount of money to produce an ad that makes a meaningful impact on viewers.
Be Mindful of all the Cost Variables
Spend for commercial production, use editing software to polish the ad’s visual appeal and the stage will be set to air it before a viewing audience. However, local TV advertising costs differ based on the time of year.
Airing an ad on local TV really is that much more expensive if there is a cultural event on the horizon. As an example, it costs more to run commercials during the Olympic Games and election season than times of the year when such events are not occurring.
Even the time of day or night when the ad airs shapes the cost of local TV advertising. Advertise during prime time such as Thursday or Sunday night between 7 pm and 11 pm and you’ll pay a premium as this is the time when people are generally tuned into TV. Moreover, airing an ad on a local broadcast station tends to be cheaper than airing an ad on cable as broadcast TV on local affiliate stations reaches a smaller audience than nationwide cable TV channels.
Factor in the estimated cost of airing the spot in your locale when budgeting and you’ll have an even better sense of the total cost. As an example, if your business conducts operations in a rural area, your local TV advertising cost will be less than a business that primarily targets a densely populated urban area with exponentially more people.
