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Commercial Production Companies - You need to consider while determining the cost of TV advertising

Author: Pushpa Srivastava
by Pushpa Srivastava
Posted: Feb 02, 2019

The cost of television advertising is generally formulated on a cost per Month or Cost per Mille (CPM) basis. CPM is simply the cost of TV notices is 1000 people. So, all the top commercial production companies New York first tries to determine the CPM before making the TV advertisement. However, there are different factors on which the CPM is dependent. In this blog, we have come out with the essential factors that may affect the cost of the TV notice and are as follows:

  • Demographic of viewers:

It is seen that the commercial production companies usually wants to target the people who have the capacity to spend more commercials. Therefore they usually choose the customers whose net worth or products are likewise.

  • Gender:

Gender also plays a major role in identifying the audience's convenience because the product that may be producing a notification could exist for any specific gender. Therefore, the advertising company should pay attention to gender as well as to create a TV advertisement.

  • Broadcast or cable:

It is also crucial to determine whether they will announce their product or service on the broadcast or on the cable. Broadcast advertising refers to the local affiliate station but cable advertising refers to the station whereby some audiences need to pay some extra money. That means that CPM with advertising on the broadcast will be less than the cable. This is why the demographic cable attracts more focused and richer.

  • Time of the day:

It is also necessary for the TV commercial production companies to decide when to broadcast the advertisement since the CPM will be high during the prime hours. It is estimated that the main afternoon and afternoon time broadcast all the popular TV shows and more people are watching 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. So, the cost of advertising in New York is far more than the smaller cities. In addition to the cost, product utilities and services are also essential to assess the geographic location of TV Notices.

  • 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:

Where there are any events, for example, if there is any election to come there, it is seen that the candidates are willing to pay more than what they usually want to pay. Apart from the election, there may be different types of events such as the existence of a sporting event or that there may be any functions that could increase the cost of TV notices.

  • Live viewership:

It is seen that the commercial production companies New York is always ready to pay more for the programs that can be watched live. This is why TV notices are broadcasting more expensive during the live sports or reality shows.

About the Author

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

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Author: Pushpa Srivastava

Pushpa Srivastava

Member since: Jul 24, 2018
Published articles: 38

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