Thinkbox
For most businesses, the cost of advertising is an important consideration, and this is no different when it comes to TV. The below section covers how linear TV is traded, what impacts the overall price and some other considerations that will influence the cost of TV advertising.
The first and arguably most important thing to note is that, despite popular opinion, TV is not exclusively for the rich and famous or well established ‘big’ advertisers. Advertising on TV need not cost millions of pounds. In 2024, 675 advertisers spent less than £50,000, over 275 spent less than £10,000, and more than 170 spent less than £5,000..
Last year 932 new advertisers appeared on TV - an 18% increase YoY - and the commercial broadcasters are extremely well placed to help in a variety of different ways:
Not sure how to make a TV advert?
The broadcasters have specialist creative teams who can advise, assist or produce TV-ready adverts for various levels of investment.
Need help with the process?
All of the broadcasters have specialist teams dedicated to new advertisers, with or without a media agency, and they are more than happy to help guide you through the process.
Concerned about cost?
There are a number of ways the broadcasters can help to reduce the initial outlay including incentivised pricing, free airtime, shared reward schemes and more.
Speaking directly to one or more of the broadcasters can help kick start your TV journey. Contact details can be found here.
How is TV traded?
The currency on which TV is traded is called Cost Per Thousand (CPT). This is the cost of buying 1,000 impacts (note - not the same as reaching 1,000 individuals). These CPTs are variable, constantly changing and are usually represented in the form of a percentage discount off the station average price (SAP). The SAP is a benchmark price against which most buying and selling of TV advertising is calculated.
To learn about how advanced TV is bought, click here.
How do we arrive at the station average price (SAP)?
The SAP is a function of supply and demand. The supply in the case of TV advertising is represented by commercial impacts (the number of people watching TV on commercial TV stations) and the demand is represented by advertiser revenue. As you can see from the diagram below, the two sides of the equation work either together or against each other to push prices up or down.
Below are some examples of what can impact supply and demand:
The Economy – In challenging economic times, marketing budgets are often among the first to be reduced, decreasing demand. Simultaneously, consumers with less disposable income may spend more time at home, increasing TV viewership and thus supply.
Audience – Different trading audiences have different SAPs attached to them. Supply and demand influences these prices depending on how much TV they watch and how desirable to advertisers they are.
Programming – Popular shows, like live sports, attract both viewers and advertisers, boosting supply and demand. Conversely, compelling content on non-commercial channels can draw audiences away from commercial TV, reducing supply.
Weather – in warm, sunny weather, audiences spend less time indoors in front of the TV which reduces supply and vice versa.
Regionality - different UK regions have different SAPs associated to them based on supply and demand. For example, London is the most expensive region due to low supply (longer commutes, longer workting hours, etc.) coupled with high advertiser demand as a result of the relative affluence of the region.
Seasonality - SAPs vary by month based on supply and demand. January is the cheapest (low advertiser spend and high viewing as people stay in post-Christmas) and the most expensive are September to November (heightened pre-Christmas advertising demand outstrips the increased audience supply).
Other cost influencers
Negotiated discount – Length of Advert – Costs are based on the copy length , with 30” as the standard unit (time length factor of 1.00). Longer spots are charged proportionally (e.g. 60” = 2.00), while shorter ads carry a slight premium, as shown below.
Length of Advert – Different lengths of adverts have different second length price factors attached to them. 30” adverts are the base we work from, so the factor is flat at 1.00. Any adverts longer than 30” have a second length factor proportionate to the extra time on screen e.g. 60” has a factor of 2.00 as it is twice as long as a 30”. For adverts that are shorter than a 30”, there is a slight premium charged as per the factors detailed below:
