How Much Does a TV Ad or Radio Commercial Cost?

Of all the questions an advertising agency could be asked, these may well be the most difficult. Why? Because they’re not easy to answer with so many variables at play. A TV commercial shot in studio is cheaper than one shot on location. An animated TV commercial is generally more expensive than one with no animation. A radio ad with one voice is cheaper than one requiring three voices. A radio commercial requiring the composition of a music track is more expensive than one using library music.

There are essentially three cost areas pertaining to television and radio advertising. These are:

• The conceptualisation, writing and storyboarding of the idea behind a TV or radio ad
• The shooting and/or production of a TV or radio advertisement
• The flighting of a TV or radio spot

The cost of conceptualising, writing and storyboarding a TV commercial can vary from twenty thousand rand to a hundred thousand rand or more. The cost of shooting a TV commercial could vary from a conservative fifty thousand rand to in excess of a million rand. Whereas the cost of flighting a TV spot could range from R550 per thirty second spot (probably at 02h00 in the morning when hardly anyone is watching) to a budget-blowing R130 000 per thirty second spot on Generations (when the viewership runs into the hundreds of thousands).

The costs of radio advertising are considerably lower than the costs of television advertising, but are not necessarily cheap – as any marketer advertising on popular morning drive time shows will tell you. Consider that a thirty second radio commercial flighted on the 06h00-09h00 drivetime slot on 94.7 Highveld Stereo last year would have cost you R15 863 excl VAT and that the cost to flight a thirty second ad on other stations would have cost – as examples – R7 860 excl VAT (5FM), R11 220 excl VAT (Jacaranda 94.2FM)  and R8 490 excl VAT (Metro FM) and you’ll see that radio advertising requires a meaningful marketing budget if done correctly over time.

Of course, one does not have to advertise on radio during morning or afternoon drivetimes. You may have a product or service aimed at housewives who listen to the radio during the day whilst their husbands are at work – in which case, you could advertise at much cheaper rates. Examples: R3 420 per 30 second spot during the 12h00-16h00 time slot on 5FM (2011 rates) or R1 728 per 30 second spot on Highveld Stereo’s 19h00-22h00 time slot (again, 2011 rates).

While most marketing companies aspire to advertising on TV or radio, the costs of doing so often result in them looking instead at moe affordable advertising media, like street pole advertising, shopping mall advertising, washroom advertising, cinema advertising or online marketing.

The larger marketing brands (CocaCola, MTN, Vodacom, Cell C, Kelloggs, Willards, Edgars, Woolworths, Nike etc) need to advertise on TV however, as this is where their customers are – and it’s all about brand awareness, sales generation and fishing where the fish are.

If yours is a small company or start-up operation, by all means look at advertising on TV or radio to get your brand known, but know that the costs can be exorbitant. Rather look at growing your business by marketing online or other more affordable media until you’re at a size where TV and radio advertising become viable options.

Your advertising agency or marketing consultant (if you have one) will be able to advise you in this regard and get you costings and advertising rates to help you plan your marketing campaign. If you know the parameters of your advertising budget and have a good idea as to your target market, any decent ad agency will be able to recommend the advertising media that will work best for you.

Just don’t ask them the cost of a radio or TV commercial…..unless you’re prepared for the banal answer of “How much is a piece of string?”