0.7p. That’s the average cost of buying the media space to enable one person in the UK to see a TV ad (linear and BVOD). This can surprise people because TV advertising can be perceived as expensive.
But while this perception is one of TV’s strengths (it’s one of the reasons why brands that advertise on TV are seen as higher quality, more popular and more successful), the truth is that TV is not just for advertisers with deep pockets. Far from it. In 2021, 829 TV advertisers spent less than £50,000, 355 spent less than £10,000, and 211 spent under £5,000.
And, whatever the budget, what’s most important is that TV advertising is incredible value. TV is on average almost half the price of YouTube, for example, and seventeen times cheaper than other online video advertising, like Facebook. These other forms of video cost advertisers more because of their cost-per-start trading model and the ease with which users can avoid the ads.
And this is before you consider all the other environmental and quality factors that distinguish TV – its high ad completion rates, full screen viewing, high-quality and brand-safe content, the fact that it is watched so much with other people…all of which influence what matters most: effectiveness.
On top of this, TV advertising provides bonus views. In online advertising, advertisers have to pay for every view their ad gets, whether or not the viewer is in the desired audience (or a human). For example, Nielsen data suggests that 65% of online impressions for 16-34s are ‘in target’, while 35% are ‘out of target’. Advertisers still have to pay for all of them.
With TV advertisers don’t pay for any of the out-of-target audience, which can be substantial. This exposure is absolutely free.