How Much Does a TV Commercial Cost?
September 16, 2024
If you’re planning to advertise your brand on television, one of the first questions you’ll ask is: How much does a TV commercial cost? The short answer is: it depends. The long answer involves understanding what goes into producing a spot, what it takes to get it on air, and how to align your budget with your goals.
At Movie Mogul, we’ve produced commercials at every level, from local spots to national campaigns. Let’s break down what drives cost, what decisions matter most, and how you can approach your next TV commercial with confidence.
Production: Where the Costs Begin
A common misconception is that shorter commercials cost less simply because they’re shorter. In reality, the length of a commercial has very little to do with its cost. A 30-second spot can cost more than a 60-second version if it involves higher production value. What truly impacts your production budget is the complexity of the creative.
If your commercial includes multiple shoot days, high-end equipment, specialized crew, talent with usage rights, licensed music, and detailed post-production, the price goes up, regardless of length.
Here’s how the tiers typically break down:
- Local Commercials: Often run between $5,000 and $15,000. They may feature a simple concept with limited locations, a skeleton crew, and non-union talent. You’re usually looking at a one-day shoot and a short edit timeline. These spots are common for local service providers, dealerships, and political campaigns.
- Regional Campaigns: For a larger regional rollout, the production budget climbs to $20,000 to $75,000. At this level, brands may hire professional crews, rent sound stages or specialty locations, cast experienced actors, and take more time in post-production. You’ll get a polished result designed to stand out in major media markets.
- National Broadcast Spots: When you’re producing a commercial to air nationwide you’re entering six-figure territory. National campaigns often cost $100,000 to $500,000 or more… depending on the concept, shoot logistics, visual effects, music licensing, and talent agreements. Some commercials tied to major product launches or sporting events reach $1 million+, especially when celebrity talent or stunts are involved.
Creating a Production Budget
Each commercial is unique, but most production budgets include the following elements:
- Creative Development: This includes the concept, script, storyboards, and pre-visualization. A creative agency or production company typically handles this.
- Pre-Production: Casting, location scouting, crew hiring, permits, insurance, and scheduling.
- Production: This is the shoot itself with direction, camera team, grip/lighting, sound, art department, and other departments. Costs increase based on the size and complexity of the crew, number of locations, and length of the shoot.
- Post-Production: Editing, color grading, sound design, motion graphics, and mastering for broadcast standards.
- Licensing & Rights: You’ll need to pay for any music, footage, or third-party visuals. If you’re working with union talent, you’ll also have to budget for usage windows and renewals.
What separates a great production partner from the rest is the ability to maximize every dollar. The focus is on what makes the spot effective and not the flash that doesn’t serve the message.
Additional Costs
Commercials often involve hidden or unexpected costs. Plan for them early to avoid surprises later:
- Talent Usage Rights: Union actors typically come with limited usage windows. Extending or renewing those rights can cost thousands.
- Music Licensing: Custom scores, recognizable songs, and even stock tracks carry licensing fees. Depending on the usage, this can range from $500 to $50,000+.
- Clearance & Compliance: National spots must go through legal clearance, technical checks, and may require closed captioning or accessibility features.
- Agency or Producer Fees: If you’re working with a full-service agency, expect to pay 10% to 20% of your media spend as a management fee or retainer.
These costs can add 20 to 30% to your base production and media budget, so it’s wise to build them into your early estimates.
Media Buying: Putting Your Commercial on Air
Once you’ve produced your commercial, you need to purchase airtime. This is where the other half of the budget comes into play. The cost of buying airtime depends on three factors: market size, network, and time slot.
- Local Broadcast: In smaller markets or during off-peak hours, 30-second spots can run as low as $100 to $500 per airing. In medium-sized markets during daytime programming, that number climbs to $1,000 to $5,000. Evening news, prime time, or major sports events will cost significantly more.
- Regional Cable: Regional placements on cable channels like HGTV, ESPN, or FX cost more but allow you to target a broader footprint without going fully national. These typically run between $15,000 and $100,000 per campaign, depending on the reach and frequency of your media plan.
- National Broadcast: For big brands airing during major events or popular shows, expect to spend $150,000 to $500,000 for a single 30-second spot in prime time. And if you want your commercial to air during the Super Bowl? That’ll cost you between $7 million and $8 million, just for the airtime.
Realistic Budget Scenarios
To help frame expectations, here are three sample commercial types and what they typically cost:
Local Business Commercial (Denver Market)
- Production: $11,000
- Airtime: $4,000
- Total: $15,000
Regional Healthcare Campaign
- Production: $40,000
- Airtime: $30,000
- Total: $70,000
National Retail Spot
- Production: $150,000
- Airtime: $500,000
- Total: $650,000
In each case, the production value aligns with the scale and reach of the media buy.
Final Thoughts
In the world of commercial production, there is no one-size-fits-all answer. But with a clear goal, a strategic plan, and the right creative team, you can make your budget—big or small—work hard for you.
A great commercial does more than fill 30 seconds of airtime. It builds trust, defines your brand, and drives action.
So how much does a TV commercial cost? As much as you’re willing to invest in making your message unforgettable.
Need help planning your next commercial? Whether you’re producing for broadcast, streaming, or a regional cable buy, Movie Mogul can guide you from concept to cut. Let’s bring your story to life… on brand and on budget!