How Much Does It Cost To Make A Commercial?

Last Updated on December 8, 2021 by Peter Townsend

The various advertising channels let entrepreneurs expand their reach to the public and establish the appropriate marketing strategies to advertise their brand, sell their goods and earn a high return on investment. The expenses of advertising campaigns are undoubtedly costly. But at the end of the day, the strategies result in a final payoff.

However, the issue remains in the air. How much will it cost to develop the radio, television, or social media ad campaign?

Let’s take a look at a few aspects that are responsible for the factors that affect the cost of production of commercials.

how much does it cost to make a commercial

How Much Does It Cost To Produce A Commercial?

A smart business person will ensure that all expenses of the company are budget-approved and that investments are carefully calculated.

Traditional advertising methods that include radio and TV are often compared to digital strategies like social media and online marketing. Naturally, there is a difference between these methods of advertising with regards to production costs as well as a number of other aspects.

TV Advertising

There are two steps that go into TV commercials Production and design.

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The design phase is the creation of content that can be used in national or local TV ads. TV advertisers typically have the tools available to the design team to assist in creating the script and finding actors.

The production stage is the process of creating commercial videos. The filming process begins with the first shooting The scenes are adjusted to match the length, and the video commercial is reviewed to ensure final approval.

The process of deciding whether to broadcast commercials on national or local scopes leads our attention to one of the elements that influence the cost of advertising. 

The rates for commercials on TV vary across different areas, and it’s essential to know the range of your audience, no matter if you’re targeting national or local customers. This way you will be able to position your TV ads accordingly and make sure your costs are within the budget of your marketing campaign.

The costs for the production of TV commercials, such as half-hour infomercials are estimated between $20,000 and $1 million dependent on the quality and length of the commercial.

The other two factors that influence the cost of TV commercials include the broadcaster and the timing of airing. The primetime rates from 6:00 to 10:00 pm are the most expensive. These are the most popular hours of entertainment on television, and also when the majority of people are watching. 

If a product is targeted at the public during these hours, the advertisement alone can have an average of $350,000 for a 30-second national TV commercial. In contrast, the daytime advertising price is around $150,000 per 30-second television spot. Add that to costs of production to determine the total cost.

Radio Advertising

Many people aren’t aware of the effect of radio as a medium for advertising. Some even say that it’s just a costly marketing strategy. Actually, the radio has a huge range of potential customers that is more than 90 percent of American adults.

Radio advertising production involves voice talent, scriptwriting, and editing audio/video. Radio ads are often made using videos due to the sharing of social media, and this is extremely efficient. The cost of production ranges from $300-$2,000. This does not include the cost of airtime per week, which can range from $200-$6,000 based on the location.

The most successful commercial radio must be placed at the appropriate time of the day and take into consideration the desired level and the participation of listeners.

  • In the mornings, from 6 am and 10 am, people will be taking the drive in the morning which radio companies consider to be the most sought-after time slot and has the highest levels of listener engagement.
  • Midday, from 10:00 am to 3:00 pm, has a moderate amount of engagement but an audience that is smaller.
  • The afternoon-to-evening break between 3:00 and 7:07 pm also features an extremely high level of participation and popularity with the audience of radio.
  • Evening hours from 7:00 pm until 12:00 am, has a very low response rate from radio listeners. Advertising companies are able to negotiate discounted rates with radio stations.
  • The off hours between 12:00 and 6 am are the most low interactions with listeners to the radio. Advertisers that use this time slot provide services during this period during the week, such as taxi service and 24-hour dining establishments.

There are instances in which it is best to stop radio ads. For instance, products that fall within those markets that are niches less likely to profit from this method. It is a targeted market, which is not one of the advantages of radio advertisements. There’s a large number of listeners to radio stations, which makes it difficult to discern listeners who have an interest. However, the availability of services that are based on location is a popular choice for the listeners.

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Social Media Advertising

The process of marketing via social media typically requires a well-established website that will help the users to build brand recognition and drive sales conversions. Therefore, on your social platform the campaign, which is comprised of ad copy and commercials with images or videos brings traffic to the site in order to convince the users to engage in a specific action.

The extensive social media marketing and management services vary between $1,000 and $3,000 per month. Ad spends are not included.

The cost of campaign management services is provided to the social media advertising companies that specialize in this medium. They are able to offer copywriting, ad strategies monitoring of ads, as well as tools for managing ads to guarantee the quality of the campaign and its success. Social media professionals are able to determine the cost per click, impression like follow, view, download, engagement, or other action taken by the public.

Adspend refers to the daily ad rates of social media platforms such as Facebook, Instagram, Google, YouTube, LinkedIn, Twitter, and many more. The suggested daily ad spending rates vary from $200 to $1,000 for the highest performance of the campaign.

Extend Your Reach With Multiple Advertising Campaigns

Advertising on radio, TV, and social media allows you to expand your options for reaching different audiences with the appropriate strategies. Commercials that air on various platforms can be a quicker way of establishing brand awareness in addition to increasing sales and exceeding the expected ROI. Combining several marketing channels might seem like a huge-scale marketing campaign. Even with expensive marketing expenses, The results are more than the risk of investing. It’s a saying: either take a risk or you’ll be home.

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