The expense of running tv commercials differs widely, depending on if your ad operates on local stations or national networks. The genuine cost of your advertisement can be determined by tracking how much it costs to convert a prospect into a client. Include the total expense of production and the number of slots in which your advertisement runs, then divide that amount by the number of consumers you converted throughout that timeframe to determine the average conversion cost.
TV Production expenses to develop a commercial variety in cost from free to hundreds of thousands of dollars. National commercials produced by a marketing company cost far more, balancing $342,000 for a 30-second area in 2008, according to the American Association of Advertising Agencies.
National marketing commercials are beyond the spending plan of most little business, specifically during popular televised events such as the Super Bowl. According to Time, the 30-second commercials that ran throughout the 2011 Super Bowl cost approximately $3.5 million per area. Popular tv programs such as American Idol pull in around $475,000 per 30-second spot, according to AdWeek. Even less popular nationally telecasted programs, states AdWeek, commonly will cost in excess of $100,000 for a 30-second spot in 2011.
Most television stations offer two minutes of local advertising per hour, providing little companies a more inexpensive way use TV ads as part of their marketing strategy. Rates vary depending on the time of day and year along with your area. If your target audience is more than likely to see your advertisement throughout the local news at midday, you may pay anywhere from $200 to $1,500 for a 30-second area throughout that time, says Entrepreneur. Commercials that run between the prime viewing hours in between 6 to 7 p.m. will always be the most expensive time.
To cut expenses, make sure you understand the programs your target market is most likely to view. Ask for totally free production of your ad before you sign up for a long-term written agreement. To keep expenses down, run a couple of 15-second commercials for branding functions and utilize 30-second ads to persuade potential customers to take action.
TV advertising is a scary concept for most small business owners, but a meeting with your local television station or advertising agency will help you to understand how it all works and what the costs and benefits are likely to be.
You know your market, and you know your customers, better than anyone, so beware of the sales hype. Advertising on TV will eat up your advertising budget in a heartbeat if you let it, but it can also be the most effective campaign that you have ever tried.
A good idea is to speak with a local company that has run a similar campaign, or even a company in a close by town that is in your market, and ask them for their thoughts and ideas, that way you can learn from their mistakes.
There was a recent campaign in our local area that helped very small companies to run 15 second adverts, which were basically a quick promo interview. These enabled businesses that would never normally be able to advertise on tv to do so, and they were run within a themed program or news item. Our local but well known Mansfield double glazing business was able to take advantage of this opportunity and it did bring in some extra business that month. The main advantage for them though was brand recognition. Most places the owner goes these days, people recognize him as the guy from the TV. Just from a couple of 15 second ads! And his conversion rate for other advertising such as magazine or newspaper ads has increased due to his higher profile. That just shows the power of TV advertising.
So, if you think that TV advertising is something that you are ready for, start making some calls, do your research, maybe even team up with an associated business, such as a carpet cleaner and carpet retailer, to pool your assets and build your brand recognition.
I look forward to seeing you on TV!