Factors need to be considered while determining the cost of TV advertising

The cost of television advertising is basically calculated on the basis of Cost Per Thousand or Cost Per Mille (CPM). CPM is nothing but the cost of TV ad to be watched by 1000 people. So, all the top commercial production companies New York first tries to determine the CPM before making the TV advertisement. But there are various factors on which the CPM depends. In this blog, we have come out with the essential factors that can affect the TV advertisement cost and they are as follows:

• Demographic of viewers:

It is mostly seen that the commercial production companies New York always wants to target those people who have the capacity to spend money. As such, they usually choose the customers whose age is in between 25 to 54 years.

• Gender:

Gender also plays a great role in defining the desirability of the audience because the product for which advertisement is producing may be for any particular gender. As such, the advertising company should pay heed to the gender as well while creating a TV advertisement.

• Broadcast or cable:

It is also very essential to determine whether they will advertise their product or service on the broadcast or cable. Advertising on broadcast refers to that of the local affiliate station whereas Advertising on cable refers to the station for which the viewers need to pay some extra money. That means CPM to advertise on the broadcast will certainly be less than that of the cable. That is the reason why cable will attract more targeted and wealthier demographic.

• Time of the day:

It is also necessary for the TV commercial companies to decide when to broadcast the advertisement since the CPM will be high during the prime hours. The evening is considered as the prime time as in evening time all the popular TV show are broadcast and more and more people usually watch the television at this time.

• Geographic location:

Geographic location also plays a great role in the TV advertisement cost. It is generally seen that production houses NYC wants to broadcast the TV advertisement in the big cities. As such, the cost to advertise in New York is much more than that of the smaller cities. Along with the cost, the utility of the product and services also make it essential to consider the geographic location for the TV Ads.

• Time of the year:

The time of the year also plays a great role in the cost of the TV advertisement. It is generally seen that the first three months of the year remains very competitive and most of the organizations choose this time to broadcast their commercial ads on TV.

• National or local event:

In case there are any events for example if there are any upcoming election then it is seen that the candidates will be willing to pay higher than what they usually want to pay. Apart from the election there can be several types of events such as there can be a sporting event or there can be any functions in which the cost of a TV advertisement may boost.

• Live viewership:

It is seen that the commercial production companies New York always becomes ready to pay more for the programs that can be watched live. This is the reason why broadcasting a TV advertisement are more expensive during the live match.

Pushpa is an expert author. She currently leads the content marketing department of Sinema Films - A Video Production Company in New York.