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Average Cost of a Local Commercial

Average Cost of a Local Commercial

So you own a local business and want to increase its recognition on the local market and grow its sales through a local television commercial? You definitely have the right idea. Advertising professionals have long known that television advertising is one of the most effective ways of advertising a product or service. Moreover the most cost-effective way to produce and air a commercial is to do so locally. This guide is a brief overview of the average cost of a local television commercial in the United States. Even if you are not a business owner who is seeking to sell his or her products and services to a wider audience, you can benefit from this information in order to run a commercial for a church group or other non-profit organization.

Cost Factors
There are a number of different cost factors that together determine the cost of the television commercial. Some of the most important of these include:

• Talent — Hiring talent to star in a commercial is an expense that Car salesman handing keys to a couplecan be quite significant if well-known local TV personalities are chosen. However, a company that wants to run a commercial on local television can lower its talent cost or even eliminate it entirely by using employees that are already earning a salary from the company in the ads.
• Production Values — The smoother and more complex the production values of a commercial happen to be, the more you will have to pay to produce it. Using a lot of well-thought-out special effects, for instance, is costly. If you stick to the least complicated effects and other production values, the amount you have to pay to create a commercial will be greatly reduced. On the other hand, commercials with a rougher look or that appear to have been produced by those who are not professionals may not attract the same kind of attention as commercials that feature higher production values.
• Local Media Market — In real estate, the three most important words are location, location, location. The same rule applies to producing and airing local television commercials. Major cities such as New York, Miami, Atlanta or Chicago present commercial producers with higher overall production costs than smaller towns and cities. Food, lodging, props and other things that are necessary for producing a commercial are far more expensive in big cities than small ones.

In addition to higher production costs, local air time in big cities costs more than air time in smaller towns. That is a factor that must be considered whenever one is considering the potential return on investment for airing a local television commercial.

Local TV Commercials Versus National TV Commercials
It is worth noting that local TV commercials cost far less than national television commercials. The reason for that is that national commercials air in far more media markets, and there is a cost to run an ad in each market. That means that an average commercial that is aired across the country can cost well into the hundreds of thousands of dollars to produce and air. Marketing professionals, however, say that depending on the particular market and the amount of air time that is purchased, a local commercial can cost under $1,000 dollars. Another important factor for air time cost is the hour at which the commercial is aired. A commercial that is on the air at 2:00 a.m. will generally cost far less than one that airs at 7:00 p.m. due to the larger number of viewers who will be watching during the prime time hours.

The Best Commercials to Air on Local TV
The cost of a local television commercial can be a significant investment for a small business, so it is good for companies to air the ads that are going to get the best response for the money that is spent. Marketing specialists recommend that small companies air so-called “Immediate Response” ads that encourage viewers to respond right away by contacting the company for a product or service. These produce a better response for a company’s immediate bottom line than commercials that merely position the brand or logo with the aim of building name recognition and brand loyalty over time.