TV Ad Pricing
Advertising on television can be a costly investment, but it’s an efficient way to reach to lots of people at once. It’s also good to know if you are getting your money’s worth is to calculate the CPM (Cost Per Mille) of your ad which means the cost of getting your ad in front of 1,000 people. To determine the price of your advertising space per “eyeball,” you can use some simple figure to ascertain your CPM. One of the best ways to get an accurate CPM for a television advertisement is to know how excellent the rating is of the television show with which your ad plays. The percentage for a network series is 11% of the television-owning American population, which is calculated to be 94 million households (The Museum of Broadcast Communications). The more popular a show is, the more pricey advertising around it will be. The best way to get a reasonable price on television ad time is by purchasing in advance. Once a year, usually in May, networks sell advertising slots for the upcoming television season, which is known as the upfront market.
The main idea of advertising is to communicate a message to an audience effectively, and television is primarily a tool to reach an audience, the market for advertising on a station will be reliant upon the audience that advertising message stretches. Advertisers are purchasing access to arrive at an audience. The price that each advertiser pays depends on the time, channel and the audience, therefore the price will be different depends on the audience that stations can attract for those spots.