The cost of advertising on television is determined by a range of factors. These will include……
The day is divided into ‘dayparts’. Peak (1730-2300) is the most valued daypart in terms of audience size and profile and will command the highest price. Daytime (pre-1730) and Late Night (post-2430) represent less demanded dayparts. Nevertheless Daytime provides a highly effective environment for Direct Response advertising (DRTV), whilst Late Night is especially attractive for advertisers targeting a younger, or male-biased audience.
Generally speaking, it is more expensive to advertise in and around high-profile programmes. On Channel 5, for example, these will include major feature films, live football, US crime drama and popular documentaries.
Time of year
The cost of advertising on television varies by season, depending on audience levels and overall advertiser demand. For instance, the autumn months are relatively expensive, while advertising in July and August represents especially good value.
The cost of television advertising also depends on the duration of the commercial, with the most popular length on Channel 5 being 30 seconds. As a guideline, transmitting a 30-second commercial will cost twice as much as showing a 10-second ad and a 60-second twice as much as a 30-second ad.
Cost will also depend on the level of detail in specifying an advertiser’s target audience. The more plentiful and accessible the target, the cheaper the rate for reaching them, on a per viewer basis. For example, a broad group such as All Adults could be bought at an average cost of around £6 per thousand viewers / or a little under a penny each. However, a more tightly-defined target, such as Men aged 16-34, will cost closer to £50 per thousand viewers.
Although Channel 5 is essentially a national broadcaster, we also cater for advertisers with a specific regional requirement by additionally trading airtime against four broad geographical areas, known as ‘macro’ regions. These cover London, the North of England and Scotland, with a fourth region including the South and Central parts of England and Wales plus Northern Ireland. The cost associated with regionality reflects both the size and nature of the population, together with the relative level of demand for each region. (See Macro Map).
Terrestrial v Digital – The cost of advertising is also affected by the channel that you are looking at. The terrestrial channels are generally more expensive due to their transmission footprint and their audience size. The terrestrial channels are the only way you can communicate with over 2m viewers on a regular basis. A lower cost entry point for many advertisers is within the multi-channel environment. Smaller broadcasters can deliver a smaller but more targeted audience.
Rough guide to cost
All the complexities aside, the cost of a 30” advertisement in Daytime would be approximately £2,000, whereas in Peak the figure would be around £17,000.