Sinema Films

  • 315 W 36th Street, New York, NY, 10018
We are a premier production company based out of New York and Los Angeles.
  • Video Production Company
  • 315 W 36th Street, New York, NY, 10018
Added on 04 February 2019

How can you calculate the TV advertising cost?

04 February 2019

Every advertising company should know the formula for calculating the television advertising cost before they hire any production company. The Los Angeles production companies should not depend on their TV agency for finding out the cost that will be incurred on their television advertisement.

It is always better if the advertising company itself know how to calculate its own TV advertising cost. This will help the company to decide whether the costing is right for them or they have to choose some other alternatives. That is the reason why in this blog we have come up with the formula that will certainly help the advertising company to find out their television cost.

Calculation for the TV Advertising cost

The first thing that you need to know is the CPM, i.e., the cost of advertisement to be telecasted for 1000 times for that particular channel. The advertising company can come to know about the CPM from the broadcasting channel. Then the advertising company needs to know the number of viewers who watch the show on which the advertisement will be aired. Once the advertising company determines these two details they can easily find out the costing of their television advertisement.

For example, suppose that an advertising company wants to purchase 10 TV spot on a particular TV show on a channel. If that TV show is watched by 20,000 viewers on an average and the CPM of the television show is $11.15 then the costing of the television advertisement can be calculated as follows:

Costing of TV advertisement = (Number of Spot) x (Number of viewers) x (CPM of the TV show)   = 10 x 20000 x $11.15 = $ 2.230.

 This is the correct way to calculate the costing of a television advertisement. Every TV commercial production companies New York should determine the cost of the television advertisement before approaching the television agency so that no TV agency can deceive them.


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