How Much Does a Commercial Cost?

Are you wondering how much you’re going to have to dish out to film a good commercial production? If so, then you’re in the right place! 

In this post, we are going to discuss the many factors that can affect your overall video production costs for a tv commercial. 

The fast answer is, it depends. A less cryptic answer is that it depends on what kind of platform you plan on using, the budget, the length of the commercial, and local going rates for a director of photography. You’ll find that film production costs for commercials have a price range from $1,500 to $150,000, with much in between!

So, let’s get into what factors can add up the most and what you need to consider to keep your budget on track.

Consider Your Platform

One of the first things you’ll want to do is consider just what kind of commercial platform you plan on using. I’ve put this one first on the list because it can impact your overall budget, and you don’t want to have to donate a kidney to get your video on the wrong platform.

TV ads can range from $50-$80 for a 30-second commercial air time to as much as $1500-$20,000, so you’ll want to choose wisely! 

You might be wondering what are the factors in this drastic range of expenses. It all comes down to where you target your commercial. Is it a regional or local market? Or is it national? Let’s go over the different advertising platforms in closer detail:

Local Commercials

Local commercials are the most affordable, with 30-second spots costing less than $100 depending on the local TV advertising company.

National Commercials

If local television won’t reach the majority of your target audience, you might want to step it up a notch or two. That’s where national commercials come into play. Note that due to the wide-ranging scope of national commercials, the production quality is typically higher and you will want to work with a production company that has experience with national television commercials. This will be infinitely more costly, ranging from $25,000 to $150,000 for that 30-second spot. 

Here’s an example of a commercial in the $25,000 range: 

Here’s an example of a commercial in the $150,000 range: 

The company and time (e.g. prime time) that you work with also determine costs. Expect to pay a good $4-5 million on a commercial spot on the Super Bowl, for example.

Online Commercials

A third option that you can consider is using an online video marketing platform like YouTube or even social media platforms like Facebook to reach your audience. YouTube advertising costs are determined differently from traditional TV advertisements. 

Instead of paying for a 30-second slot, for example, you pay per view or click. This means that you have more control over your budget and can cancel online marketing for your commercial if you’ve found yourself over budget. 

The average cost of a YouTube commercial is around $0.10-$0.30 per click, so the more successful your commercial, the more it costs, but the more it costs, the more you make. In this way, you have more room to adjust your budget accordingly. 

Budget

With that in mind, it’s time to think about your budget. 

Small Budgets

If you’re a small business looking to get started, chances are your budget is small. There’s no problem with a small budget, as you can still come up with a commercial that helps your business increase its earnings. 

For just $1,500-$3,500, you could have a high-quality video up and running that can compete with your competitors. Admittedly, it would be a more basic video, with text and graphics, and some royalty-free music, but it will do the job for where you’re at in your business.

Flexible Budgets

Maybe you have a more flexible budget and can churn out a little more cash for the commercial you want. Maybe you’re a medium-sized business looking to get the upper hand in your field. Production costs, platform launching, planning, and fine-tuning for a more professional commercial can range from $20,000-$30,000 in total. This includes pre-production work, professional actors, makeup artists, visual effects, studio rentals, professional equipment, post-production work, and a director. 

The Sky’s The Limit

Every business’s marketing dream involves a limitless budget. Say you have no problem investing as much money as needed into your commercial. That’s when you can hire a filming studio to do the work for you. Film producers have all of the equipment and can work with you to develop that dream commercial that will blow your competitors out of the water.

These kinds of commercials can range from $150,000 to millions of dollars, especially if you hire a famous director, renowned businessperson, celebrity, or athlete.

Commercial Length

Naturally, length matters when it comes to commercial costs. A thirty-second clip is far cheaper than a one-minute clip, for instance. 

If you’re on a tight budget, opt for less airtime to save on costs, but if you have an important message that needs more time than 30 seconds, consider investing in a longer segment. 

Location Matters

Depending on where you film, your location can also drive prices up. If you plan on filming in a studio or at a rental site where you pay by the hour, this can rack up costs, so plan accordingly. 

If you want to save on money, you can film in a free location, but always take into account lighting, staging, backdrops, and any outside interference.

Video Tech

This one may be obvious, but you don’t want to neglect the importance of quality video technology. You need high-quality cameras, speakers, lighting, staging, and editing software to pull off a good video. 

You really can’t skip these details, which is why you want to choose your battles wisely and go for more affordable options elsewhere when budgeting for your commercial. If you need to skip that fancy location, national tv, or longer video to afford to produce a quality video, do it.