TV Advertising Costs
Television advertising has undergone a dramatic transformation in recent years. With the rise of video-on-demand (VOD) platforms and the enduring power of traditional linear TV, advertisers now have multiple avenues to reach their target audiences. Each option comes with distinct cost structures and advantages, making it essential to understand which platform aligns best with your goals.
Let’s explore VOD and linear TV advertising costs, planning considerations, and production expenses.
TV Advertising Costs.
Understanding TV Advertising Costs.
VOD Advertising Costs
Video on Demand (VOD) platforms like ITVX, All 4, and Sky Go allow advertisers to target specific audiences with precision. Unlike traditional linear TV, VOD campaigns offer unparalleled flexibility and accessibility for businesses of all sizes.
No Minimum Budget
VOD campaigns are highly scalable and don’t require a significant upfront investment.
Any business—big or small—can run a campaign tailored to its budget.
CPM Pricing
Advertisers pay on a Cost Per Thousand (CPM) basis, which means costs are tied to the number of impressions delivered.
Typical CPM range in the UK: £30–£150 per 1,000 views.
The cost depends on factors like platform, targeting granularity, time of year, and ad length.
Highly targeted campaigns (e.g., specific age groups, locations, or interests) tend to fall on the higher end of the range.
Advantages
Targeting Precision: Advertisers can reach specific demographics, ensuring their message resonates with the right audience.
Budget Flexibility: Smaller businesses can test campaigns without committing large sums.
Performance Analytics: VOD platforms provide real-time insights, enabling advertisers to optimize campaigns on the fly.
When to Choose VOD
If your primary goal is precision targeting and measurable outcomes.
Ideal for small-to-medium businesses or brands with more limited budgets looking to test and refine campaigns.
Linear TV Advertising Costs
Linear TV, or traditional scheduled broadcasting, remains a powerhouse for delivering massive reach. While it often requires a more substantial budget, it’s an effective way to make a big impact quickly.
Minimum Budget
Recommended starting budget: £100,000+
This level of investment ensures a sufficient number of spots to achieve campaign goals, especially for nationwide audiences.
Cost of TV Spots
Peak time (evenings): £10,000–£35,000 for a 30-second spot on popular channels like ITV or Channel 4.
Daytime slots: £3,500–£5,000, depending on the channel and region.
Regional TV: Significantly lower costs, starting at just £100 for local campaigns.
Premium slots: Airing during flagship shows (e.g., Love Island or The Great British Bake Off) can exceed £50,000 for a single spot.
Sponsorships
Sponsoring a show or segment is another way to gain consistent exposure.
Starting costs: £50,000+
Examples include sponsoring weather updates, soap operas, or sports broadcasts.
Advantages
Mass Reach: Linear TV campaigns excel at reaching broad audiences across the nation.
Brand Authority: Traditional TV is perceived as highly credible, which can enhance your brand image.
Long-term Impact: Best suited for creating widespread brand awareness or launching a new product.
When to Choose Linear TV
If your goal is to maximize reach and establish credibility on a national scale.
Best for large-scale campaigns with the budget to maintain frequency and visibility.
Ad Production Costs
Regardless of whether you choose VOD, linear TV, or both, producing a compelling advert is essential. Costs for ad production can vary widely based on the concept, creative complexity, and technical requirements.
Production Cost Ranges
Low-budget Ads (£3,000–£10,000)
Simple yet effective storytelling.
Ideal for smaller businesses or targeted VOD campaigns.
Examples: Static shots, voiceovers, or basic animations.
Mid-range Ads (£10,000–£50,000)
Includes professional actors, polished visuals, and higher production value.
Perfect for brands seeking significant impact across both linear and digital platforms.
High-end Ads (£50,000–£1M+)
Feature 3D animation, CGI, celebrity endorsements, or elaborate set designs.
Typically used for high-profile linear TV campaigns or prestigious sponsorships.
Key Considerations
Storyboard Complexity: Detailed concepts with intricate storylines or effects increase costs but yield more memorable campaigns.
Ad Length: While 30 seconds is standard, longer ads or series may require additional investment.
Post-production: Costs for editing, sound mixing, and visual effects can significantly impact the final price.
Which Platform Is Right for You?
VOD Advertising
Best for: Targeted, performance-driven campaigns with smaller or scalable budgets.
Budget: Flexible, with costs tied to CPM.
Goal: Precision targeting and measurable ROI.
Linear TV Advertising
Best for: Broad, nationwide campaigns aimed at building brand awareness.
Budget: Starts at £100,000 for effective campaigns.
Goal: High reach and mass impact.
Sponsorships
Best for: Long-term brand association with popular shows or segments.
Budget: £50,000 and up, depending on the programme or time slot.
Final Thoughts
TV advertising, whether through VOD or linear TV, remains one of the most impactful ways to connect with audiences. VOD offers unparalleled flexibility and targeting, making it accessible to businesses of all sizes, while linear TV’s broad reach and credibility are ideal for large-scale campaigns. Sponsorships provide another effective route for consistent exposure.
By aligning your advertising goals with your budget and audience, you can create a campaign that maximizes impact—whether you’re testing a new product on VOD or making a statement on prime-time linear TV.
