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How Much Should You Spend on TV Ads?

When it comes to advertising your business, television ads can be a powerful tool to reach a wide audience. But, as with any marketing strategy, the question of budget always comes into play: How much should you be spending on TV ads?

The answer, of course, depends on your specific business and goals. However, there are a few key factors to consider when determining your TV advertising budget.

Audience Size and Reach

One of the main benefits of TV advertising is the ability to reach a large audience. However, the size of your audience will depend on the specific channels and programs you choose to advertise on. For example, advertising on a popular national network during prime time will likely be more expensive than advertising on a local cable channel during off-peak hours.

Consider your target audience and the channels they are most likely to be watching. If you are trying to reach a specific demographic, such as young professionals, you may want to focus on more expensive, but more targeted, channels such as cable networks. If your target audience is more broad, national networks may be a better choice.

Ad Length and Frequency

Another factor to consider is the length and frequency of your ads. A 30-second ad spot on a popular national network during prime time can cost several thousand dollars. However, running the same ad during off-peak hours or on a less expensive channel can significantly reduce the cost.

Additionally, running your ad multiple times per day or week can also increase costs. Consider your budget and goals when determining the length and frequency of your ads.

Production Costs

The cost of producing your TV ad should also be factored into your budget. This includes costs for scripting, casting, filming, editing, and any special effects. These costs can vary widely depending on the complexity of the ad and the production company you choose.

When determining your TV advertising budget, consider all of these factors and evaluate how they fit into your overall marketing strategy. By taking a strategic and holistic approach, you can ensure that you are getting the most out of your TV advertising investment.

In general, small businesses should consider allocating 7-8% of their revenue to advertising and larger businesses may consider allocating 2-3% of their revenue. To reiterate, though, your budget is ultimately dependent on the business goal and industry.

In conclusion, there is no set amount that businesses should spend on TV advertising. It ultimately depends on your specific business, goals, and audience. By considering the size and reach of your audience, the length and frequency of your ads, production costs, and overall marketing budget, you can determine the right budget for your TV advertising strategy. With a well thought out budget and a clear advertising strategy, you can effectively reach your target audience and drive results for your business.


Find out how Simulmedia’s unique TV+® platform for TV and streaming advertising provides unified access to premium linear and CTV inventory across all networks and publishers. Request a demo or email us at advertise@simulmedia.com.