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TV Advertising Tutorial - What is TV Advertising and How Much Does it Cost

TV Advertising Tutorial - What is TV Advertising and How Much Does it Cost

TV Advertising Tutorial - What is TV Advertising and How Much Does it Cost

Nov 21, 2024

What is TV Advertising

With more and more people cutting the cord, CTV digital advertising has become a popular method of reaching people online. In fact, CTV ad spend rose nearly 60% from 2020 to 2021, reaching $14.44 billion. This newer player in the advertising game will continue growing as more people rely on the Internet to consume content.

What Is Connected TV Advertising?

CTV Advertising Definition

Connected TV, or CTV, refers to televisions that use the Internet to stream video. Think Smart TVs that let you download apps to your favorite streaming services.

This definition also includes devices that give a television the ability to stream online, like video game consoles or Fire sticks.

CTV advertising, in turn, is a form of digital advertising that reaches people while they’re using a CTV device.

CTV does not provide video via traditional broadcast, satellite, or cable channels, so ads viewed in this manner would not be considered connected TV ads.

CTV vs. OTT

An acronym you might hear used with CTV is OTT. While these terms are connected, they’re not quite the same thing.

  • OTT (Over-The-Top) refers to content presented to viewers using the Internet.

  • Examples of OTT Platforms: Netflix, Hulu, Prime Video, HBO Max, and other popular streaming platforms.

OTT video can be viewed on various devices via the Internet, such as laptops, smartphones, and connected TVs.

To quote the IAB Tech Lab:

  • “Use CTV to refer to a specific type of device.”

  • “Use OTT to refer to content.”

How CTV Digital Advertising Works

While connected TV advertising is fairly new, the basic principles of advertising still apply.

Steps to Prepare for CTV Advertising

  1. Define Your Audience
    Know who you want to reach and what you want them to do after viewing your ads.

  2. Content and Targeting
    This information shapes your ad content and helps you choose the best audience targeting strategy when launching your campaigns.

  3. Granular Targeting and Insights

    • Get more specific with your targeting than traditional TV ads.

    • Gain access to campaign insights to shape future marketing decisions.

The Role of Programmatic Advertising

Programmatic advertising tools are essential for managing CTV ads. These tools use automation to handle your digital ad campaigns by:

  • Bidding for ad space.

  • Updating budgets and targeting.

If you’re new to programmatic advertising, consider partnering with an agency to help you get started.

How Much Would it Cost to Run TV Advertising

The Ubiquity of TV Advertising

Unless you've lived under a rock all your life, you have been subjected to TV advertising. Some are okay, some are indefensibly awful. But every once in a while, you'll come across something that you'll remember for the rest of your life.

The Accessibility of TV Advertising Today

As the world of marketing and TV has expanded, things like TV advertising that were previously unavailable to us common mere mortals are now realistically usable. With services like Sky AdSmart, ITVX, and 4oD, TV advertising can be targeted to a specific audience, and we've created adverts using these platforms.

How Much Does It Cost?

A question we've been asked many times is: how much does all this cost? So, we're going to do our best to answer that question in this article.

Traditional TV Advert Slots

For your bog-standard traditional TV advert—rather than the big fancy streaming targeted stuff—you will still pay for a slot.

For example, you might pay for a 30-second advert during the lunchtime showing of Alan Partridge's Skirmish, a military-based quiz show on a digital channel, UK Conquest. Or, during the first ad break of Ant & Dec's Saturday Night Takeaway. Obviously, one will cost more than the other.

TV advertising production agency Toast TV lists smaller digital channels as starting around £70 to £180 for daytime ads and £160 to £330 for peak time. Whereas a slot during breakfast shows starts to creep up into the several-thousand-pound range.

This kind of TV advertising is more like a scattergun than a sniper rifle. You make a loose assumption about the demographic watching the channel or the show and, with the help of the station itself, hope to get some leads off the back of it.

TV Streaming Advert Slots

Streaming services like Sky AdSmart or 4oD offer another option.

  • The minimum budget for a Sky AdSmart advert is £3,000.

  • You'll only be charged if your audience watches the video for at least 75% of it. So if they click off after a couple of seconds, you won't be charged.

  • You'll also receive measured results of your campaign to see how it's performing.

This kind of TV advertising is very targeted. You know who it's going to and can be specific about choosing an audience.

Production Costs

Away from all the platform costs, there are the production costs.

  • An all-singing, bells-and-whistles TV advert with a celebrity, licensed music, and a good slot on TV is going to cost you hundreds of thousands of pounds—properly expensive.

  • At Stone's Throw Media, we've worked on Sky AdSmart projects. For us, it's a case of charging what we would usually do for a video project. This could range from £3,000 to £30,000, depending on what you want and your budget.

Best Performing TV Advertisement Examples

Doritos - "The New Kid" TV Commercial in 2015

Doritos The New Kid TV Ad was viewed over 73 millions times on YouTube with over 184K likes, this TV commercial earned huge exposure for the brand as increasing it publicity while sharing a sense of warmness in the video.

Oreo - "Bubbles of Play" TV Commercial in 2022

The Oreo TV commercial made a huge impact on it's already well-recognised brand image, Oreo has been consistent with how it market itself and determined to leave a great impression in people's mind.

Mercedes-Benz - "Chicken TV Commercial" in 2013

A funny TV commercials help to make your content and messaging more memorable, Mercedes approach in this video emphasis on the stability of it's production vehicles.

TV Advertising Advice from Experienced Marketers

The cost for TV advertising might seem overwhelming at first, that's due to the high cost both in content production and ad spend, but there is a secret tool that can help. AI has revolutionalize so many things in marketer's time, and it's fair to say - not adopting the latest technology in your own marketing approach can be a waste of time and money. Tools like Creatify AI helps you generate Video Ads in minutes.

What is TV Advertising

With more and more people cutting the cord, CTV digital advertising has become a popular method of reaching people online. In fact, CTV ad spend rose nearly 60% from 2020 to 2021, reaching $14.44 billion. This newer player in the advertising game will continue growing as more people rely on the Internet to consume content.

What Is Connected TV Advertising?

CTV Advertising Definition

Connected TV, or CTV, refers to televisions that use the Internet to stream video. Think Smart TVs that let you download apps to your favorite streaming services.

This definition also includes devices that give a television the ability to stream online, like video game consoles or Fire sticks.

CTV advertising, in turn, is a form of digital advertising that reaches people while they’re using a CTV device.

CTV does not provide video via traditional broadcast, satellite, or cable channels, so ads viewed in this manner would not be considered connected TV ads.

CTV vs. OTT

An acronym you might hear used with CTV is OTT. While these terms are connected, they’re not quite the same thing.

  • OTT (Over-The-Top) refers to content presented to viewers using the Internet.

  • Examples of OTT Platforms: Netflix, Hulu, Prime Video, HBO Max, and other popular streaming platforms.

OTT video can be viewed on various devices via the Internet, such as laptops, smartphones, and connected TVs.

To quote the IAB Tech Lab:

  • “Use CTV to refer to a specific type of device.”

  • “Use OTT to refer to content.”

How CTV Digital Advertising Works

While connected TV advertising is fairly new, the basic principles of advertising still apply.

Steps to Prepare for CTV Advertising

  1. Define Your Audience
    Know who you want to reach and what you want them to do after viewing your ads.

  2. Content and Targeting
    This information shapes your ad content and helps you choose the best audience targeting strategy when launching your campaigns.

  3. Granular Targeting and Insights

    • Get more specific with your targeting than traditional TV ads.

    • Gain access to campaign insights to shape future marketing decisions.

The Role of Programmatic Advertising

Programmatic advertising tools are essential for managing CTV ads. These tools use automation to handle your digital ad campaigns by:

  • Bidding for ad space.

  • Updating budgets and targeting.

If you’re new to programmatic advertising, consider partnering with an agency to help you get started.

How Much Would it Cost to Run TV Advertising

The Ubiquity of TV Advertising

Unless you've lived under a rock all your life, you have been subjected to TV advertising. Some are okay, some are indefensibly awful. But every once in a while, you'll come across something that you'll remember for the rest of your life.

The Accessibility of TV Advertising Today

As the world of marketing and TV has expanded, things like TV advertising that were previously unavailable to us common mere mortals are now realistically usable. With services like Sky AdSmart, ITVX, and 4oD, TV advertising can be targeted to a specific audience, and we've created adverts using these platforms.

How Much Does It Cost?

A question we've been asked many times is: how much does all this cost? So, we're going to do our best to answer that question in this article.

Traditional TV Advert Slots

For your bog-standard traditional TV advert—rather than the big fancy streaming targeted stuff—you will still pay for a slot.

For example, you might pay for a 30-second advert during the lunchtime showing of Alan Partridge's Skirmish, a military-based quiz show on a digital channel, UK Conquest. Or, during the first ad break of Ant & Dec's Saturday Night Takeaway. Obviously, one will cost more than the other.

TV advertising production agency Toast TV lists smaller digital channels as starting around £70 to £180 for daytime ads and £160 to £330 for peak time. Whereas a slot during breakfast shows starts to creep up into the several-thousand-pound range.

This kind of TV advertising is more like a scattergun than a sniper rifle. You make a loose assumption about the demographic watching the channel or the show and, with the help of the station itself, hope to get some leads off the back of it.

TV Streaming Advert Slots

Streaming services like Sky AdSmart or 4oD offer another option.

  • The minimum budget for a Sky AdSmart advert is £3,000.

  • You'll only be charged if your audience watches the video for at least 75% of it. So if they click off after a couple of seconds, you won't be charged.

  • You'll also receive measured results of your campaign to see how it's performing.

This kind of TV advertising is very targeted. You know who it's going to and can be specific about choosing an audience.

Production Costs

Away from all the platform costs, there are the production costs.

  • An all-singing, bells-and-whistles TV advert with a celebrity, licensed music, and a good slot on TV is going to cost you hundreds of thousands of pounds—properly expensive.

  • At Stone's Throw Media, we've worked on Sky AdSmart projects. For us, it's a case of charging what we would usually do for a video project. This could range from £3,000 to £30,000, depending on what you want and your budget.

Best Performing TV Advertisement Examples

Doritos - "The New Kid" TV Commercial in 2015

Doritos The New Kid TV Ad was viewed over 73 millions times on YouTube with over 184K likes, this TV commercial earned huge exposure for the brand as increasing it publicity while sharing a sense of warmness in the video.

Oreo - "Bubbles of Play" TV Commercial in 2022

The Oreo TV commercial made a huge impact on it's already well-recognised brand image, Oreo has been consistent with how it market itself and determined to leave a great impression in people's mind.

Mercedes-Benz - "Chicken TV Commercial" in 2013

A funny TV commercials help to make your content and messaging more memorable, Mercedes approach in this video emphasis on the stability of it's production vehicles.

TV Advertising Advice from Experienced Marketers

The cost for TV advertising might seem overwhelming at first, that's due to the high cost both in content production and ad spend, but there is a secret tool that can help. AI has revolutionalize so many things in marketer's time, and it's fair to say - not adopting the latest technology in your own marketing approach can be a waste of time and money. Tools like Creatify AI helps you generate Video Ads in minutes.

What is TV Advertising

With more and more people cutting the cord, CTV digital advertising has become a popular method of reaching people online. In fact, CTV ad spend rose nearly 60% from 2020 to 2021, reaching $14.44 billion. This newer player in the advertising game will continue growing as more people rely on the Internet to consume content.

What Is Connected TV Advertising?

CTV Advertising Definition

Connected TV, or CTV, refers to televisions that use the Internet to stream video. Think Smart TVs that let you download apps to your favorite streaming services.

This definition also includes devices that give a television the ability to stream online, like video game consoles or Fire sticks.

CTV advertising, in turn, is a form of digital advertising that reaches people while they’re using a CTV device.

CTV does not provide video via traditional broadcast, satellite, or cable channels, so ads viewed in this manner would not be considered connected TV ads.

CTV vs. OTT

An acronym you might hear used with CTV is OTT. While these terms are connected, they’re not quite the same thing.

  • OTT (Over-The-Top) refers to content presented to viewers using the Internet.

  • Examples of OTT Platforms: Netflix, Hulu, Prime Video, HBO Max, and other popular streaming platforms.

OTT video can be viewed on various devices via the Internet, such as laptops, smartphones, and connected TVs.

To quote the IAB Tech Lab:

  • “Use CTV to refer to a specific type of device.”

  • “Use OTT to refer to content.”

How CTV Digital Advertising Works

While connected TV advertising is fairly new, the basic principles of advertising still apply.

Steps to Prepare for CTV Advertising

  1. Define Your Audience
    Know who you want to reach and what you want them to do after viewing your ads.

  2. Content and Targeting
    This information shapes your ad content and helps you choose the best audience targeting strategy when launching your campaigns.

  3. Granular Targeting and Insights

    • Get more specific with your targeting than traditional TV ads.

    • Gain access to campaign insights to shape future marketing decisions.

The Role of Programmatic Advertising

Programmatic advertising tools are essential for managing CTV ads. These tools use automation to handle your digital ad campaigns by:

  • Bidding for ad space.

  • Updating budgets and targeting.

If you’re new to programmatic advertising, consider partnering with an agency to help you get started.

How Much Would it Cost to Run TV Advertising

The Ubiquity of TV Advertising

Unless you've lived under a rock all your life, you have been subjected to TV advertising. Some are okay, some are indefensibly awful. But every once in a while, you'll come across something that you'll remember for the rest of your life.

The Accessibility of TV Advertising Today

As the world of marketing and TV has expanded, things like TV advertising that were previously unavailable to us common mere mortals are now realistically usable. With services like Sky AdSmart, ITVX, and 4oD, TV advertising can be targeted to a specific audience, and we've created adverts using these platforms.

How Much Does It Cost?

A question we've been asked many times is: how much does all this cost? So, we're going to do our best to answer that question in this article.

Traditional TV Advert Slots

For your bog-standard traditional TV advert—rather than the big fancy streaming targeted stuff—you will still pay for a slot.

For example, you might pay for a 30-second advert during the lunchtime showing of Alan Partridge's Skirmish, a military-based quiz show on a digital channel, UK Conquest. Or, during the first ad break of Ant & Dec's Saturday Night Takeaway. Obviously, one will cost more than the other.

TV advertising production agency Toast TV lists smaller digital channels as starting around £70 to £180 for daytime ads and £160 to £330 for peak time. Whereas a slot during breakfast shows starts to creep up into the several-thousand-pound range.

This kind of TV advertising is more like a scattergun than a sniper rifle. You make a loose assumption about the demographic watching the channel or the show and, with the help of the station itself, hope to get some leads off the back of it.

TV Streaming Advert Slots

Streaming services like Sky AdSmart or 4oD offer another option.

  • The minimum budget for a Sky AdSmart advert is £3,000.

  • You'll only be charged if your audience watches the video for at least 75% of it. So if they click off after a couple of seconds, you won't be charged.

  • You'll also receive measured results of your campaign to see how it's performing.

This kind of TV advertising is very targeted. You know who it's going to and can be specific about choosing an audience.

Production Costs

Away from all the platform costs, there are the production costs.

  • An all-singing, bells-and-whistles TV advert with a celebrity, licensed music, and a good slot on TV is going to cost you hundreds of thousands of pounds—properly expensive.

  • At Stone's Throw Media, we've worked on Sky AdSmart projects. For us, it's a case of charging what we would usually do for a video project. This could range from £3,000 to £30,000, depending on what you want and your budget.

Best Performing TV Advertisement Examples

Doritos - "The New Kid" TV Commercial in 2015

Doritos The New Kid TV Ad was viewed over 73 millions times on YouTube with over 184K likes, this TV commercial earned huge exposure for the brand as increasing it publicity while sharing a sense of warmness in the video.

Oreo - "Bubbles of Play" TV Commercial in 2022

The Oreo TV commercial made a huge impact on it's already well-recognised brand image, Oreo has been consistent with how it market itself and determined to leave a great impression in people's mind.

Mercedes-Benz - "Chicken TV Commercial" in 2013

A funny TV commercials help to make your content and messaging more memorable, Mercedes approach in this video emphasis on the stability of it's production vehicles.

TV Advertising Advice from Experienced Marketers

The cost for TV advertising might seem overwhelming at first, that's due to the high cost both in content production and ad spend, but there is a secret tool that can help. AI has revolutionalize so many things in marketer's time, and it's fair to say - not adopting the latest technology in your own marketing approach can be a waste of time and money. Tools like Creatify AI helps you generate Video Ads in minutes.