Ostroff, Fair and Company
*Ostroff, Fair and Company>>>Other - Advertising & Marketing

How much does a Commerical Cost?



I'm asking about putting an commercial on Free-To-Air TV, ie. the Rate in which companies would have to pay for a Second or Minute of TV in commercial space.

I would prefer an answer which deals with Australia's Commercial TV and their cost, But i guess I can't be too pickie on where the price is =)
thankyou in advance.

The costs will included production, post production and duplication. If you want very high production values it will be very costly, lets say over a million dollars counting celebrity announcers or endorsers.

The production costs will vary depending on the length of the spot. is it a :30 or a :60?

The amount of time you pay to air the advertisement is very flexible. Do you want your ad on at a specific time during a very popular program? if so you are looking at a huge bill, perhaps tens to hundreds of thousands of dollars per airing. Do you want the ad seen nationwide or just in some markets? This too, will impact the cost.

If you are less picky, you can ask the local stations to run the ad on "day parts" or "night parts" which means the station runs it any time during the day or night as the case may be.

Run of station is even less expensive. The station runs the ad whenever it has an opening.

Many local automobile dealerships will make arrangements with stations where they pay the station a flat rate every time the ad is aired and they don't care when it airs.

Another factor that will influence you rate is the amount of advertising time, or inventory, that is available.

In the US, for example, inventory for the summer of 2008 is getting scarce. We have the Olympics and a presidential election chewing up inventory.

What the specific rates are in Australia I can not say, but the game is played there, pretty much as it is here.
The cost of a television commercial will depend on the time of day it airs, the amount of audience, and which TV station. Remember you will also have to pay for the production of a television commercial, which can be costly. The usual TV spot is 30 seconds in the U.S. You might want to try radio instead. Production is usually free and you can target your audience by the station's format. If you are looking for females 18-34, it would likely be a light rock station. Ask a radio rep to come by to explain it all to you. Be sure you know who your customer already is....not who you want your customer to be. You can't sell a hearing aid to a 25 year old girl.
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