TV Ad Production Costs: A Guide for Businesses of All Sizes

From $0 to over $1 million — that’s the vast spectrum of costs for creating a TV commercial. While the quality and creativity of an ad produced for $15 will differ significantly from one with a $150,000 budget, the beauty of today’s advertising landscape lies in its inclusivity. Businesses of all sizes, from startups to global corporations, can showcase their brand on television, leveraging a range of budgets to make an impact.

So, let’s take a closer look at how much does it cost to advertise on tv.

The components of TV advertising cost

When creating a TV ad, there are many decisions to make, and the first one is the format: national or local, 30 or 60 seconds, animation or video with actors. These choices not only define the audience you’ll reach but also sets the foundation for your production budget. Crafting a TV commercial involves several stages, each with its own cost considerations. Factors like whether you handle production in-house or hire subcontractors, the reputation of those subcontractors, and even the location of the shoot can all influence the final price. To clarify, we’ve outlined average costs in the U.S. market for 2024, offering a helpful benchmark for planning your campaign.

Pre-Production

• Concept Development: Depending on the agency's reputation and involvement, creative brainstorming sessions and agency fees can cost between $5,000 and $50,000.
• Scriptwriting: Hiring a professional scriptwriter or creative team ranges from $1,000 to $20,000.
• Casting: Finding actors or models varies widely based on their experience and fame, from $500 for local talent to $50,000+ for a celebrity.

Production

• Crew: Costs for a professional crew, including a director, camera operators, sound engineers, and lighting technicians, can range from $10,000 to $100,000+ per day.
• Equipment Rental: High-quality cameras, lighting rigs, and sound equipment rentals cost between $5,000 and $50,000 per shoot.
• Location Fees: Filming on location may require permits and rentals, ranging from $1,000 to $100,000+, depending on the venue.
• Set Design and Props: Creating a custom set or sourcing props can add another $5,000 to $50,000 to the budget.
• Talent Fees: Paying on-screen talent varies widely, from $500 per day for extras to $50,000+ for high-profile actors.

Post-Production

• Video Editing: Professional editing services range from $5,000 to $50,000.
• Special Effects and Animation: Depending on their complexity, advanced effects or animations can cost $10,000 to $100,000+.
• Sound Design and Music: Licensing music or creating custom scores costs $1,000 to $30,000, while sound effects and mixing add $2,000 to $10,000.
• Color Grading: Enhancing the visual tone of the ad typically costs $2,000 to $10,000.

Additional Costs

• Agency Fees: Hiring a full-service agency to handle the production can add $20,000 to $200,000.
• Usage Rights: Licensing fees for actors, music, or footage vary widely, often adding $5,000 to $100,000+ for extended use.
• Distribution and Media Buy: While not part of production, airing the ad requires additional investment, typically starting at $10,000 and reaching millions for national campaigns.

The average production costs for a professionally produced 30-second commercial typically fall between $10,000 and $50,000, with more elaborate productions costing significantly more.

How to reduce the cost of ad Production

For major corporations, creating high-budget TV commercials and airing them during events like the Super Bowl is a strategic investment in brand awareness. However, this doesn’t mean smaller businesses and marketing agencies should shy away from TV advertising altogether. Linear TV remains unparalleled for its broad reach, and according to a Nielsen report, over 70% of U.S. households still subscribe to traditional cable or satellite TV. The good news? Today, TV advertising is more accessible than ever. Let’s explore practical ways to reduce costs at every stage of the production process, ensuring TV remains a viable and impactful channel for businesses of all sizes.

Pre-Production

Pre-production can feel like a high-stakes creative sprint, but with some savvy decisions, it doesn’t have to break the bank. Imagine skipping the pricey big-name agencies and instead collaborating with a nimble freelance team or tapping into in-house talent for concept development. Scriptwriting? Platforms like Fiverr or Upwork can connect you to skilled writers worldwide, offering quality work at a fraction of the cost. Casting, too, doesn’t always mean celebrities—local talent or acting school newcomers can deliver standout performances without the Hollywood price tag. For even bigger savings, consider subcontracting parts of the process, such as storyboarding or editing, to professionals outside the U.S., where competitive rates often come with exceptional craftsmanship.

Production

Ideas take shape in the production stage, but it doesn’t have to drain your budget. Start by choosing cost-effective locations—local settings or in-house venues can eliminate the expense of travel and permits. Keep your crew lean and rent only essential equipment, leveraging local production packages for added savings. Opt for talented emerging directors and cinematographers instead of big names, and simplify your set designs to maximize impact with minimal costs. Daylight shoots can cut lighting expenses, and virtual production tools can recreate complex environments without costly on-location shoots. Finally, consider outsourcing elements like animation or editing to skilled international professionals, balancing quality with affordability.

Remember, even big brands sometimes shoot ads outside the US. For example, Apple and Electronic Arts shot their ad in Ukraine.

Post-Production

Use powerful and budget-friendly software tools that streamline editing, such as Final Cut Pro or Adobe Premiere. Opt for freelance editors or smaller post-production houses instead of high-profile studios, ensuring they have a strong portfolio that aligns with your creative vision. Simplify visual effects and avoid overcomplicating animations unless absolutely necessary. Leverage royalty-free music libraries for soundtracks instead of custom compositions or hire emerging composers. Conduct color grading and sound mixing efficiently by sticking to the essentials, focusing on clarity and consistency.

AI tools that can help you reduce the cost of TV ad production

If you're a small brand just starting out, getting on TV is still within reach. AI tools can now generate video content at little to no cost, making TV advertising more accessible than ever. While these ads might not win you an Emmy, they provide an excellent opportunity to take your first steps in television advertising. Even for larger brands, AI offers significant advantages—it allows you to customize your ads, creating multiple variations tailored to different target audiences. It's a smart, cost-effective way to maximize impact and reach.

Here are some examples of AI tools that can help to create video:

Tool Cost Key Features HubSpot Clip Creator Free Customizable templates, no watermarks FlexClip Free with premium options Extensive media library, dynamic text animations VEED.IO Free; paid from $12/month Text-to-video generation, stock music library Zebracat From $49/month Fast creation, high engagement optimization Creatify Free trial available AI avatars, text-to-speech, script writing

TV advertising is no longer the exclusive domain of large corporations; it’s now an accessible opportunity for businesses of all sizes, from small startups to major enterprises. Today, it’s not just about creating a TV ad—running one is within reach for everyone. For larger businesses, platforms like Simulmedia’s data-driven TV+ offer advanced solutions to optimize campaigns. For smaller and mid-sized companies, self-serve platforms like Skybeam provide an easy and efficient way to tap into the power of TV advertising.