What does television advertising cost?
Cost-efficient and high-reach TV advertising
In a constantly changing media landscape, television advertising remains a key element in the marketing strategy of many companies. Despite increasing digitalization and the variety of new advertising platforms, television retains its unique ability to reach many people at the same time and shape a brand's image in the long term. But what does television advertising actually cost? The answer is complex and depends on a number of different factors. From the type of broadcaster and program environment to spot length, advertising format, time slot and billing method - the cost structures in the TV advertising market are as diverse as the advertising opportunities themselves.
All information on TV advertising costs
- What types of television channels are there?
- How are the costs for television advertising made up?
- What is the CPM?
- The modern alternative to traditional TV advertising: Addressable TV
- Classic TV commercials vs. addressable TV
- Production costs for television advertising
- Sample cost breakdown for ATV
What types of television channels are there?
Private broadcasters
These channels are commercial companies that are mainly financed by advertising. Their wide range of programs is aimed at a mass audience (e.g. RTL, Prosieben, SAT.1). The average cost of television advertising is highest here.
Public broadcasters
These broadcasters are financed by broadcasting fees and have the task of informing, educating and entertaining the public. They are legally obliged to offer a broad and balanced program that represents different interests and social groups (e.g. ARD, ZDF).
Special interest channels
Special-interest channels focus on specific topics or interest groups, such as sport, music or news, and offer content tailored to these specific areas (e.g. DMAX, n-tv, Sport1). The average cost of television advertising is lowest here.
Regional channels
These channels focus on reporting and producing content that is specifically relevant to certain geographic regions or communities. They play an important role in promoting local culture and providing news and information that is particularly relevant to the residents of these areas (e.g. rbb, NDR, WDR).
Ready to get started in television marketing?
Are you looking for an effective addition to your existing marketing mix? Television advertising could be just the thing. As a full-service marketing agency, we can help you take the first step into television. Contact us for a no-obligation initial consultation and find out how you can get your advertising message onto the screens of your target group!
How are the costs for television advertising made up?
The advertising costs for television stations vary depending on their specific audience and reach, with national private stations or public broadcasters with a wide reach generally charging higher costs for television advertising than special-interest and regional stations.
Commercials that are broadcast during programs with high ratings and a target group relevant to the brand being presented are often more effective and therefore more valuable. The cost of television advertising is particularly high before the 8 p.m. news program on ARD, for example. In the "best seconds" before the news, advertisers pay an average of EUR 44,600 for a 20-second TV spot.
The cost of television advertising is influenced by the time of day, the day of the week and the time of year. Advertising is more expensive during advertising time in the evening (primetime) than in the morning or afternoon. In addition, the cost of television advertising can rise before important holidays or special events due to increased demand.
Conventional commercials are often billed by the second. The longer the spot, the higher the cost of television advertising. For example, the price per second for a TV spot directly before the news program ZDF "heute" in 2024 is between EUR 799 and EUR 1,572, depending on the day of the week and month.
The cost of television advertising varies considerably, depending on whether it is, for example, special placements in premium program environments or short banner ads as part of Addressable TV. Each of these options offers different advantages and reaches the audience in its own way, which is reflected in the respective costs.
Traditionally, the cost of television advertising is based on the "thousand contact price" (CPM). There are also prices per second or fixed price models where a fixed amount is agreed for certain time slots or specific placements. Such agreements are often common for premium broadcasting slots or for special events such as sporting events or holiday specials.
Costs for television advertising: What is the CPM?
The CPM ("thousand contact price") indicates how much an advertiser has to pay to reach 1,000 people from the target group (visual contacts). This measure is used to compare the costs of advertising measures across different media and advertising spaces. The CPM is calculated as follows: Advertising price / reach * 1,000. The CPM says nothing about the quality, but only about the quantity of contact with the advertising medium.
According to AGF Videoforschung and GfK, the CPM in regular TV averaged EUR 18.05 (RTL, SAT.1 and Prosieben) and EUR 9.17 (ARD) in 2023.
The modern alternative to traditional TV advertising: Addressable TV
Addressable TV (ATV) bridges the gap between traditional television and targeted online advertising. ATV makes it possible to broadcast advertising spots to specific viewer groups based on their demographic data, viewing habits or other relevant criteria. In contrast to traditional television advertising, in which an advertising spot is broadcast to all viewers of a channel, ATV allows a much more precise target group approach at comparatively low TV advertising costs.
Advertisers can tailor their TV commercials specifically to groups of people who are most likely to be interested in their products or services. This enables a personalized advertising experience for the viewer and leads to a more efficient use of the advertising budget as wastage is minimized.
Classic TV commercials vs. addressable TV
Long lead times, high minimum budgets: classic TV commercials
Classic TV commercials have been an integral part of the advertising world for decades. However, they are often linked to minimum booking volumes that drive up the cost of TV advertising. In addition, there are long lead times that make flexible and short-term planning difficult. The high reach of traditional TV commercials is accompanied by high scattering losses, as the commercials reach a broad audience that is not always specific to the target group. In addition, the commercials often take place in long advertising blocks, which many viewers find annoying and often do not watch at all. This format is therefore particularly suitable for large companies with corresponding advertising budgets that are aiming for general brand awareness and are prepared to accept these disadvantages.
Low entry barriers, targeted targeting: ATV
In contrast, ATV is a modern form of TV advertising that enables more specific targeting. ATV requires lower minimum budgets, allowing smaller companies or those with limited advertising budgets to advertise effectively on TV. Rather than spending large sums on broad but unspecific reach, ATV allows advertisers to target their funds more effectively, achieving visible results even with lower TV advertising costs.
Another advantage of ATV is its flexibility. The shorter lead times and the ability to adjust advertising campaigns in real time allow for a more dynamic and responsive advertising strategy. This is particularly important in a fast-paced world where market trends and consumer behavior can change rapidly.
ATV campaigns can be realized in various advertising formats and also without moving images (e.g. Switch In XXL, Switch In commercial/bumper or full screen). Would you like more information about ATV? Click here to go to our services page:Production costs for television advertising
The production costs for television commercials can vary greatly depending on the type and scope of the commercial. The main factors that influence the costs include the length of the commercial, the level of production (simple graphics vs. elaborate film productions), the use of well-known actors or speakers and the costs for direction, script and locations. Simple commercials can be produced for just a few thousand euros, while elaborate advertising productions with high production standards and well-known faces can easily run into the six- to seven-figure range. Post-production, such as editing, color correction and special effects, also contribute to the total cost of television advertising. Ultimately, the production costs for television advertising depend heavily on the specific requirements and advertising objectives of the campaign.
Low production costs for television advertising with ATV
A TV commercial without moving images? It's possible with ATV! Instead of expensive video productions, companies can rely on static images, graphics or simple animations. These visual elements can be created more easily and cost-effectively while still delivering a strong, targeted advertising message.
Low barriers to entry with ATV
Addressable TV is the ideal format for taking the first step into television advertising and benefiting from the advantages of digital media at the same time. Our costs for television advertising:
Exemplary entry-level option without own video material: Switch In Banner
- Conception, consulting & design of the banner: 2 days at 1000 € / net each
- 1,000 ad impressions at 70 € / net
- Minimum booking volume of 1,500 € / net
You may have noticed that the CPM stated here is higher than the average contact price in TV from the 2023 study cited. However, the CPM alone is neither a meaningful indicator of the quality and effectiveness of advertising nor does it take into account any minimum booking volumes, which are usually very high in traditional television.
Thanks to the wide range of targeting options, ATV advertising can be played out precisely to the target group and thus to potential customers. This increases the cost efficiency of advertising campaigns many times over. In addition, ATV campaigns also manage without moving images, which significantly reduces the production costs for television advertising. If one considers not only the CPM, but also the factors of target group accuracy, efficiency and additional costs such as production costs and the minimum booking volume, Addressable TV has a clear advantage. This makes ATV a comparatively affordable but effective entry into television advertising.
Your entry into television with DREIKON!
You don't need a 5-figure advertising budget to get your brand message into the living rooms of your target group! Our team supports you with ATV on your way to television - from the creative brainstorming to the production of your TV spot or banner to booking and broadcasting. With ATV, you can reach your potential customers in a targeted manner while keeping the costs of TV advertising low. We look forward to getting to know you and your brand in a no-obligation initial meeting!
