TV Advertising Costs - The TV Agency can help

Perhaps you’ve arrived here because you’re looking to find out more about TV advertising costs? Or maybe you currently use TV to advertise your business, but need a little help with an idea of costing and how best to plan your budget?

TV advertising can seem both confusing and expensive. But it doesn’t have to be that way!

The TV Agency can help. Whether you’re a small brand, a new business, or an established company, we can talk you through your options and get you up and running.

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Let’s take a look at the costing example below as a starting point.

It covers regional costs on ITV and some National Digital channels. It’s followed by a few suggestions to consider when budgeting and best of all, a quick look at how a TV advert can actaully cost you NOTHING! Zero, Nada, Zilch!

So how much does TV advertising cost in the UK?

It’s a question we’re asked every day and there is no single answer. So instead we’re going to offer some guide prices that should help you to understand how much TV advertising costs.

But first, let’s get started by explaining some common industry terms that could be confusing.

TVR or Television rating

This is how TV audiences are measured and then bought by agencies. 10 adult TVR’s for a national UK TV campaign equates to 10% of the potential Adult audience in the UK. The current potential Adult audience size is around 51 million, so 10 TVR’s would equate to 5.1 million views.

Universe

So not like space, this relates to the potential audience size for a given audience and region. So for example in the North East / ITV1 Tyne Tees Region, there is a universe of 2.2 million Adults. That’s your Adult population size and potential audience if you targeted Adults in the Tyne Tees region.

CPT, cost per thousand or CPM

In digital they use CPM but in TV advertising we use CPT but essentially they’re the same thing. It’s the cost to reach a thousand viewers of your targeted audience and region. The average cost per thousand for 2019 for buying Adults in the Granada region was £6.52, this varies by month and audience and region.

30″

Refers to the length of your advert. 30″ or 30 seconds is the standard length of a TV advert in the UK and most commonly used. Smaller time lengths are not as cost efficient. Longer time lengths are often used for direct response campaigns. Time lengths are generally multiples of 10 second. But you could run a top and tail advert (two adverts in the same break) of 15 seconds each, giving a total length of 30 seconds.

The reality is that TV advertising can cost as little as £3 per advert or over 100k. Which is quite a range

So how can an advert cost £3 or £100k? It’s mainly based on the number of views who see that advert.

For example:

At the same time, you could have an advert in the Britain’s Got Talent across ITV1 nationally in peak, the cost per 30″ advert in April 2020 delivering 14TVR’s against Housewives with kids would be approximately £55,196. This can be bought regionally through and prices vary from £279 for the ITV1 border region to $1,377 on ITV1 Wales to £19,352 on ITV London Weekend Television.

TV Advertising Costs

What this shows you is that TV advertising can be done on a small and large scales depending upon your marketing goals.

Below we’re going to break down costs the three main sales houses for TV advertising in the UK, ITV, SKY & Channel 4.

You may also be interested in addressable TV advertising or digital video which are fast becoming an important part of TV advertising which we also cover further down this post.

Remember though TV advertising costs consist of two primary components: the Creative, which involves the production of the advertisement, and the Media, which covers the expenses related to airing the advertisement on various TV channels. We’ll be covering the media for the majority of this post but we do also cover creative costs further down.

Other factors to consider when looking at the cost of TV advertising would be the complexity and scale of the advertisement’s creative design, as well as the campaign’s desired reach, the frequency of the ad’s broadcast, the selection of TV channels, and other prevailing market conditions.

If you are considering diving into TV advertising, it’s essential to understand the variety of options available to meet your specific needs and objectives. As you can see, the price of daytime adverts and peak across these channels can vary greatly as the audience delivery can vary greatly. And to advertise a whole campaign, you would advertise across several channels, which allows for a broad and impactful reach.

To accommodate different advertising goals and budgets, we offer several tailored packages. Each package includes the planning and purchasing of TV media space for different broadcasters, sales houses and channels and be chosen based on the audience you are targeting. These packages are designed to be flexible. We can also include pricing to make your TV advert so that it encompasses all costs associated with the creation and airing of your advert. This simplifies the process for you, providing clarity and ease of budgeting.

Whether you are new to TV advertising or an experienced marketer, our packages are designed to cater to varying levels of experience and exposure. We encourage a ‘test and learn’ approach for newcomers, allowing you to gauge the effectiveness of your ads without a hefty initial investment. For the more seasoned advertisers, our packages can be extensively customized, focusing on those channels known to yield the best results for your brand.

We understand that every brand is unique, and our media plans are crafted to maximize the impact of your advertising efforts. To explore these tailored advertising solutions further and find a package that best fits your brand, please get in touch. We are here to assist you with any questions you may have about TV advertising costs and to help you choose the right package for your business objectives.

Below you will find further examples of potential costs so you can gain a better understanding of the reality of advertising on TV.

About TV Advertising on ITV

ITV sales is the main sales house for the ITV family of channels, ITV1, ITV2, ITV3, ITV4 and ITVBe. Most people don’t realise that ITV1 as a main terrestrial channel can be broken down into different regions so you can gep-target your TV advert, for example, Tyne Tees, covers the northeast of England. This also makes TV advertising costs on ITV1 far more affordable especially with some of the smaller regions,

For Example:

The TV advertising costs on ITV1 Border in Coronation St can cost as little as £131. At the same time, the same spot on ITV1 Carlton covering London could cost £7,486.

ITV also offers some of the largest digital channels in the UK such as ITV2, ITV3, ITV4, and ITVBe which can only be advertised nationally across the UK. Although viewing is smaller on these channels the cost per advert can be quite low.

TV advertising Costs for ITV

These are example TV advertising costs for different ITV1 regions. These examples look at a 30-second premium spot in Coronation Street for adults and a daytime advert in This Morning. Both examples target adverts, but the post in This Morning comes with a daytime discount whereas Coronation Street comes at a premium.

Prices are based on July and advertisers should be aware that pricing changes monthly based on demand, at the time of writing, July 2020 prices are down roughly 50% YOY due to COVID so in previous years the costs would have been roughly double what is shown here. TV advertising prices change based on demand.

These costs are for information purposes only and do not constitute an offer capable of acceptance.

Here is a breakdown of the average cost per 30″ advert in Coronation Street by ITV1 region including a premium based on delivering 10 Adult TVR’s (TV Ratings or 10% of the potential audience) for that region.

These costs are for information purposes only and do not constitute an offer capable of acceptance.

Breakdown of costs

Here is a breakdown of the average cost per 30″ advert in Coronation street by ITV1 region including a premium based on delivering 10 Adult TVR’s (TV Ratings or 10% of the potential audience) for that region.

£755

Tyne Tees (Newcastle, Sunderland, Gateshead, etc)

£131

Tyne Tees (Newcastle, Sunderland, Gateshead, etc)

£1081

Yorkshire Emley (Leeds, Sheffield)

£602

Yorkshire Belmony (Hull, Lancashire)

£2,556

Granada (Manchester, Liverpool)

£3,185

Central West (Birmingham)

£1,361

Central East

£1,058

Wales (Cardiff)

£788

HTV West (Bristol)

£577

West Country

£1,156

Meridian Thames Valley

£1,631

Meridian South Coast (Southampton)

£1,091

Meridian East

£1,001

Anglia East

£1,055

Anglia West

£7,486

Carlton (London Mon to Fri tea time)

£13,245

LWT (London Weekend)

£1,049

STV Glasgow

£503

STV Edinburgh

£361

STV Aberdeen

£177

STV Dundee

£463

UTV (Northern Ireland)

There are 22 different regions across ITV1 that you need to advertise across to buy a national advert as listed above.

The TV advertising cost for a national ITV1 spot in Coronation Street £41,313, based on the info above.

For daytime only the average cost per 30″ advert in This Morning by ITV1 region including a discount for daytime only based on delivering 2 Adult TVR’s (TV Ratings or 2% of the potential audience) for that region.

£755

Tyne Tees (Newcastle, Sunderland, Gateshead, etc)

£16

Border (Carlisle, Dumfries, etc)

£136

Yorkshire Emley (Leeds, Sheffield)

£76

Yorkshire Belmont (Hull, Lancashire)

£322

Granada (manchester, Liverpool)

£401

Central West (Birmingham)

£171

Central East

£133

Wales (Cardiff)

£99

HTV West (Bristol)

£73

West Country

£146

Meridian Thames Valley

£206

Meridian South Coast (Southampton)

£137

Meridian East

£126

Anglia East

£133

Anglia West

£943

Carlton (London Mon to Fri tea time)

£1,669

LWT (London Weekend)

£132

STV Glasgow

£63

STV Edinburgh

£45

STV Aberdeen

£22

STV Dundee

£58

UTV (Northern Ireland)

The TV advertising cost for a national ITV1 campaign for 100 TVR’s is £342,901, based on the info above.

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About TV Advertising on Channel 4

Channel 4 sales is the main sales house for the C4 family of channels (C4, E4, More4, Film4 etc) as well as representing some of the UK Living network channels (Dave, Yesterday, Gold, Eden) and also the BT Sports channels.

Channel 4 also has some regional opportunities for TV advertising although these are more limited than ITV1, you can target London or Scotland or the North of England as a few examples on the main terrestrial Channel 4.

TV advertising costs on Channel 4 can range from £50 for a daytime advert targeting Scotland or £2,640 for a national advert in peak times against Adults ABC1.

Channel 4’s main difference is the number of partner channels they work with where you can buy TV advertising through them. DAVE, Yesterday, W, Eden, Gold, BT Sports to name a few as well as their own, owned digital channels E4, More4, and Film4 which gives you lots of options for some quite big channels which are all mostly Freeview channels, meaning most people in the UK have access to them. Compared to most SKY channels which are only available through a subscription service.

TV Advertising costs for Channel 4

These are example TV advertising costs for different Channel 4 regions and Partner Channels. These examples look at a 30-second

These costs are for information purposes only and do not constitute an offer capable of acceptance.

For daytime only the average cost per 30” advert on Channel 4 by region including a discount for daytime only based on delivering 0.5 Adult TVR’s (TV Ratings or 0.5% of the potential audience) for that region. Based on July 20 costs, again worth noting that COVID means these are far lower than usual. TV advertising prices change based on demand.

£106

C4 North

£109

C4 Midlands

£189

C4 South

£215

C4 London

£50

C4 Scotland

£13

C4 Ulster

There are 6 different macro-regions that makeup Channel 4 that you need to advertise across to buy a national advert.

The TV advertising cost for a national daytime advert on Channel 4 is £638, based on the info above.

For a peak time advert on Channel 4 you have to buy against what we call a sub demo audience, in this example that would be AABC1 or Adults ABC1, sometimes described as upmarket Adults.

The average cost per 30” advert on Channel 4 by region including with no discount for a peak time spot, based on delivering 2.2 AABC1 TVR’s (TV Ratings or 2.2% of the potential audience for AABC1) for that region. Based on July 20 costs, again worth noting that COVID means these are far lower than usual.

£1,433

C4 North

£1,477

C4 Midlands

£2,436

C4 South

£2,640

C4 London

£758

C4 Scotland

£181

C4 Ulster

The TV advertising cost for a national peak time advert on Channel 4 is £8,602, based on the info above.

Through Channel 4 sales you can also advertise with some of the larger Freeview channels. If buying an all-time campaign again you have to buy against what we call a sub demo audience, in this example that would be AABC1 or Adults ABC1, sometimes described as upmarket Adults.

The average cost per 30” advert with no discount for a peak time spot, based on delivering 0.29 AABC1 TVR’s for a Channel 4 owned channel – More4, E4, Film 4, would be £1,119.

The average cost per 30” advert with no discount for a peak time spot, based on delivering 0.1 AABC1 TVR’s for a Channel 4 Partner channel – Dave, Yesterday, W, Eden, etc would be £386.

The average cost per 30” advert discounted for a daytime time spot, based on delivering 0.09 AABC1 TVR’s for a Channel 4 owned channel – More4, E4, Film 4, would be £92.

The average cost per 30” advert discounted for a daytime time spot, based on delivering 0.0.08 AABC1 TVR’s for a Channel 4 Partner channel – Dave, Yesterday, W, Eden, etc would be £61.

It’s worth noting that avg viewing figures do vary by channel. Based on July 20 costs, again worth noting that COVID means these are far lower than usual. TV advertising prices change based on demand.

It’s difficult to give a cost per campaign across these channels, as this varies by every advertiser depending upon your marketing goals and target audience. Usually, you would use a mix of these channels and either advertise in daytime only or across all dayparts. Realistically this means you should start with a budget of at least 20k across these channels.

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About TV Advertising on SKY

SKY Sales manages advertising for 172 different channels such as SKY1, Discovery, SKY News, MTV, SKY Sports and SKY Cinema all of which can only be bought nationally across the UK. TV advertising costs on SKY can range from £3 for daytime advert up to £20,000 for a national advert in a premium SKY Sports match.

SKY’s main difference is the sheer number of channels they work with and each channel tends to appeal to different unique audiences, meaning you can target specific audiences as part of your marketing strategy.

SKY News for example appeals heavily to those interested in finance and business.

Some of the smaller channels because of their low TV viewing figures can be bought very cheaply, especially in the daytime only, where a spot on Discovery might only cost £20 for a 30” advert.

TV Advertising costs for SKY

These are example TV advertising costs for a few different SKY Channels. These examples look at a 30-second advert in the daytime. Prices & TVR’s based on May avg for Adults against a fixed price discount.

It’s worth noting COVID means that these prices are reduced against what they would normally be. TV advertising costs are based on market demand.

These costs are for information purposes only and do not constitute an offer capable of acceptance.

£295

Channel 5

£58

5USA

£109

CBS Reality

£35

Challenge TV

£20

Discovery

£6

Discovery Turbo

£10

E!

£15

Forces TV

£3

HUM Europe

£5

MTV Hits

£95

Pick

£84

Quest

£43

SKY 1

£200

SKY News

These are example TV advertising costs for a few different SKY Channels. These examples look at a 30-second advert in peak buying against a sub demo audience of AABC1. Prices & TVR’s based on May avg with no discount.

These costs are for information purposes only and do not constitute an offer capable of acceptance.

£2,465

Channel 5

£238

5USA

£1,052

CBS Reality

£949

Challenge TV

£310

Discovery

£112

Discovery Turbo

£156

E!

£265

Forces TV

£485

HUM Europe

£98

MTV Hits

£4,097

Pick

£6,257

Quest

£6,392

SKY 1

As you can see, the price of daytime adverts and peak across these channels can vary greatly as the audience delivery can vary greatly. And to advertise a whole campaign, you would advertise across several channels.

You may also consider buying a cheaper audience to reduce your costs; there are 27 different audiences to choose from, such as Adults ABC1, known as upmarket or affluent adults, to Men 1634, Men aged 16 to 34.

The more difficult an audience is to reach and the more demand to advertise to that audience makes it more expensive. Broad Adults is the cheapest standard audience to buy, but some channels that are smaller or have niche targeting won’t necessarily allow you to buy this audience.

Did you know a TV advert can cost nothing? Too good to be true?

Let us explain:

Once your advert is up and running, and buying a rating’s campaign, you only pay for how many viewers watch your advert. By placing your advert on a smaller digital channel, the slot can register a zero viewing figure, meaning less than 1,000 viewers have seen it.

Zero viewing figure = zero cost!

Don’t panic! It doesn’t mean no one is watching, it means people are watching, but the audience is too small to register. Using this spot will cost you nothing, but if it generates a trackable response, such as a call or web visit, then what an excellent rate of return! We can supply costs across all channels such as ITV, Sky, Channel 4, and Five etc, but costing isn’t as simple with digital channels.

This is mainly because you would normally run a combination of channels for an effective campaign, whereas ITV1 delivers much higher viewing figures and can be bought across micro-regions to deliver a high impact in small areas.

Viewing figures are smaller across digitals channels and you can only advertise nationally, meaning low impact, UK coverage that requires a longer campaign. This can be very effective for campaigns where the cost per response is very imporant.

In addition to these strategic considerations, the cost of your TV advert campaign will also vary based on several other factors which we take into account:

Seasonality:

Costs can differ significantly throughout the year, with some months like summer being cheaper than peak times like autumn.

Length of the Creative:

Standard costs are usually based on a 30-second advert. If your advert is shorter or longer, costs will adjust accordingly. Remember, ads need to be a multiple of 10 seconds in the UK market.

Time of Day:

Advertising costs vary depending on the time slot you choose. Daytime advertising, for example between 0900-1730, tends to be cheaper than prime time slots.

Regionality:

Targeting specific regions with ITV, Channel 4, or Sky can influence the cost, usually resulting in a higher cost per thousand than national-only campaigns.

Addressable TV advertising

Addressable TV advertising or programmatic TV advertising is quite big in other countries and is growing in the UK. The SKY AdSmart platform allows advertisers to target viewers based on 1st and 3rd party data. Giving you targeting options such as those with pets. Those retired. By postcode or city. Age of kids or how many. As well as Mosaic and Experian audiences. So many that it’s not possible to go through them all in this post.

But this now allows any advertiser to target their specific audience. So some advertisers that may have discounted TV previously because of its mass audience reach are now being able to use similarly to their digital advertising campaigns by targeting very specific audiences based on all sorts of options.

There are some limitations and a targeted audience similarly to buying against a sub demo audience is naturally more expensive. TV advertising, in general, can cost as little as 0.5p per view but addressable campaigns are closer to 2p+ per view. For the right advertiser though, even this premium will deliver fantastic results.

Broadcast or Video-on-Demand:

Also known as Connected TV. Opting for VOD can target more specific audiences, though it generally comes at a higher cost per thousand than traditional broadcast channels. Understanding these factors will help you better navigate the costs associated with TV advertising and plan your budget more effectively.

Digital video advertising or Broadcaster VOD (video on demand) has seen huge growth recently, with audiences up as much as 30% month on month. Lots of viewers nowadays will watch TV on demand through a smart TV or service to catch up on shows they’ve missed or to choose what they want to watch when they want to watch it, giving them greater flexibility.

Now you can advertise on Netflix or Amazon Prime but in the UK, the ITVXAll4 and SKY Go are the biggest broadcaster platforms with YouTube the largest overall. Because viewers are watching their favourite TV programme digitally, broadcaster are able to use their 1st party & 3 rd party data to target very specific audiences. Similarly to addressable TV, in fact, they’re almost the same thing.

But with digital video viewers can click through to a landing page. Although most don’t, this is because they watch it, similarly to TV. On a big screen with other family members. So you have to think about what your marketing goals are for using digital video.

Lots of advertisers now use it to extend the reach of their traditional TV campaign, to help reach those who are light TV viewers. But it can also be used on its own very effectively for reaching specific audiences or targeting specific programming. Such as Sport only, or Reality only, postcode, or city targeting to name a few.

How much does it cost to make a television advert?

The cost of producing a television advertisement can vary greatly depending on several factors, including the complexity of the concept and the quality of the production elements involved.

Generally, production costs for TV adverts can start at around £5,000 and can exceed £250,000 for high-end commercials.

 

For a budget-friendly TV advert costing about £5,000, you might consider:

– Utilizing previously shot video content.

– Emphasizing graphic elements over new video shoots.

– Opting for still images instead of video clips.

– Creating a simple script and using a basic voiceover.

 

For a more sophisticated advert with a budget starting at £15,000, you might include:

– Filming at a single location.

– Incorporating special effects and animations.

– Developing a professional voiceover and script.

 

For high-end television adverts, with budgets exceeding £50,000, the production may involve:

– Shooting scenes at multiple locations or on specially designed sets.

– Hiring professional actors, celebrities, or models.

– Integrating advanced special effects and high-quality animations.

 

It’s also common practice for advertisers to allocate about 15% of their total TV advertising budget towards the creative development of the commercial, with the remaining funds directed towards buying the media space. The Media component, which involves the placement and airing of the advertisement on television channels, typically requires the majority of the budget in TV advertising campaigns to ensure optimal audience reach and impact.

Regardless of budget, teaming up with an experienced production team ensures the creation of an effective and visually appealing TV advert that effectively represents your brand.

 

At The TV Agency we have our own in-house production company that’s been making TV adverts for over 10 years. This recently rebranded as Lulu Animation

It gives us the ability to help clients from start to finish with their TV advertising, making sure that your TV advert creative aligns with your TV buying goals.