TV Commercial Production & Television Advertising

If you have ever thought about advertising on TV but assumed it was financially out of your reach, you may have been wrong. Television is much more affordable than many people think. When compared with many other forms of advertising having a TV commercial on the air is often a great value.

tv-commercial-production

TV Commercial Advertising For Your Business – Your Company Can Advertise On TV!

Let’s make an example of how a TV advertising campaign might work. We’ll compare the cost of advertising on TV with the cost of some other form of advertising such as direct mail or newspaper advertising. If you own a business in an area where there are 1,000,000 people how can you get your marketing message out to them in a cost effective way? You could run an ad in the newspaper or have a postcard designed and mailed out in your area. It isn’t only the cost of each advertising method that should be considered it is also the effectiveness that has to be examined as well.

Newspapers are typically read by educated people age 50 and above. This is great news only if your best prospect is a well educated person over the age of 50. Also, we have the problem of running an ad once and hoping people will see the ad. What if our ad was too small and didn’t get noticed? To be effective in newspaper advertising we have to be consistent and keep running our ads over a period of time if we are to see results.

Another option is direct mailing a postcard to our potential clients. Postcards just like newspaper ads need to be designed. There are a couple of extra steps in direct mailing your prospects. You’ll need to buy a list of the people you are trying to target. So far this option is looking better than newspaper advertising because we can target who we want to have viewing our message. If 1,000,000 people live within the area serviced by our business this doesn’t mean that we have 1,000,000 prospects. For our example let’s imagine that only 10% or a total of 100,000 people would ever have any use or desire for the products or services offered by our business. If that is the case then we only need to print 100,000 postcards. For a moment let’s pretend that we have a friend who works at an ad agency and we get our postcard designed for free. We are going to say that there is another friend who compiled the list of 100,000 prospects and gave us that for free. Let’s also pretend that we have a friend, a really great friend who will print our 100,000 postcards for free. I want to assume that our only cost here is the cost of postage. If we keep our postcard size just right and sort everything just right maybe we could pay as little as $0.25 per postcard to mail them. So 100,000 postcards mailed at $0.25 each is $25,000.00. Now what did our $25,000.00 in postage buy us? We put a card in the mailbox of 100,000 people one time. We hope these people will look at our postcard and be interested in what we are offering them and that they will take action and buy what we are selling. We also know that what we did is called “Junk Mail”. Junk Mailing works because if we are selling an expensive enough product or service it is ok to spend $25,000.00 to reach 100,000 people once even if most people throw away the postcard. This is why we see certain types of businesses advertising with direct mail. Car dealerships, furniture stores, hospitals and plenty of other businesses can afford to direct mail.

Now let’s look at TV advertising and we will keep the same dollar amount in mind. We can have a TV commercial like the one shown here produced for $5,000.00. This leaves us $20,000.00 to use buying TV time. We could spread this budget out over three months. Just like direct mail TV advertising allows us to target who we want to reach. Thanks to the Neilson ratings we know in general what type of people are most likely to be watching each TV show. So if a buyer of our products is women aged 35-55 we know which TV shows would have the greatest proportion of our typical client watching. Depending upon exactly what show we decide to advertise on and the city where we want the ads to run the cost of buying time on that show could allow our commercial to run a few hundred times or a few thousand times. Of course nobody will see our TV commercial every time it runs but by running our commercial often enough we build up brand recognition and people will begin to have confidence in that brand because they have seen it so many times.

These are the reasons that although our company does offer all types of advertising, TV advertising is often the best option for many clients.

 

Cost of TV Advertising – TV Advertising Rates

This is where things get complicated. The cost to advertise on a specific TV show will cost a different amount from one city to the next. The cost to advertise on a specific network will not only change from one city to the next, it will also change each time a new show come on the network. There is no fixed price in TV advertising because everything is based upon the number of viewers and the ratings. For example let’s suppose that in Hollywood Florida 60,000 people have cable TV and 2% are expected to watch a certain TV show. This means we will have 1,200 people watching this show and maybe the network wants $25 each time your TV commercial runs. In Fort Lauderdale Florida maybe we have 180,000 people who have cable TV and 1% are expected to watch the same TV show. In Fort Lauderdale for some reason a smaller percentage likes that show. At the same time Fort Lauderdale has a bigger population so we will have 1,800 viewers and if they want $30 each time your spot runs this is a bargain. At first it may seem crazy to spend more to get a 1% rated show compared with a 2% rated show. In the end it is all about the total number of people watching the show. For only $5 more, a 20% increase in cost we get to reach 600 more people a 50% increase in viewers.

Our job as media buyers is to create an advertising schedule for our clients.

The wrong way to buy TV advertising is to get a number of spots for $X amount. Many companies like to sell that way and I often hear from clients who were told by someone else that they got a great deal. Then they tell me the deal and it is always about the number of spots they get for a given price. They have no idea how many people will see their spots.

The only way to by TV advertising is by considering the reach and frequency. This means how many of my targeted group will I reach and how often will they see my spot on TV.

 

Creative Funny TV Commercial TV Production – Attention Getting TV Commercials

We often have clients who want us to produce attention getting, funny TV commercials on a tight budget. There are many options and a business should never assume that TV advertising is out of their reach. In most areas around the country the local networks and cable channels will allow a business to advertise on TV with as little as $1,500.00 per month. Just to compare with newspaper ads that same amount of money might get you a small ad in the newspaper 2 or 3 days. Or if you compare it with direct mail; just the postage on an effective mailing campaign would be a lot more than $1,500.00. TV advertising works as long as an advertiser will stick with the schedule we create and give it time to become recognized by the public. Think about it, you probably never ran out and purchased something just because you saw it on TV once. Your clients are no different, they need to see your TV commercial over and over and then one day they decide to take action.

 

Would TV Advertising Work For You?

It is helpful to consider the types of businesses that do well with TV advertising and look at the reasons why they do well. The fact is that TV advertising is great for some businesses and would be a terrible waste of money for others. We find that there are three types of businesses that seem to advertise a lot:

1. Auto Dealerships
2. Furniture Stores
3. Hospitals

Wonder what these three business types have in common? Money! When you walk into any one of the above three types of businesses you will not be able to walk out with a $20.00 purchase. Since furniture, cars and trips to the hospital are expensive they can afford to advertise on TV frequently. Often a hospital will want to run TV ads that talk about their great cardiac care department. That same hospital may have a separate advertising budget for their orthopedic department.

Does this mean that only a business with an expensive product or service should advertise on TV? Not at all and you’ll see many examples of businesses that sell very inexpensive products by using TV advertising. For example every time you watch TV you’ll see companies that sell toothpaste, laundry detergent, shampoo, soft drinks and many other items in the $1.00 to $20.00 range. What these advertisers all have in common is a consumable product. They know that you can’t buy their product just once; you’ll be back again and again for the rest of your life. They are considering the lifetime value of each customer when they advertise.