TV Advertising Rates

TV Advertising Terminology

Cost Per Thousand – cost per mille. The cost to reach 1000 people in your target audience

Cost Per Tarp – The cost to reach 1% of your target audience

Cost per Reach Point – is the cost of achieving a 1% gross rating point (GRP) or 1% of all households with access to television.  The gross rating point formula is a simple calculation of the cost of the advertisement, divided by the GRP percentage number.

Gross Rating Point

Gross rating point (GRP) is a common metric in traditional ad buying that measures the impact of a given ad campaign. GRPs quantify impressions as a percentage of a target audience, multiplied by the frequency in which that audience sees the ad. It is most commonly used in traditional ad formats where precise measurement is not possible.

Target Audience

Target audience refers to the specific group of consumers most likely to want your product or service, and therefore, the group of people who should see your ad campaigns. Target audience may be dictated by age, gender, income, location, interests or a myriad of other factors.

Target Markets

Refers to the geographic area you want reach.

Metropolitan areas include Sydney TV Advertising, Melbourne TV Advertising, Brisbane TV Advertising, Adelaide TV Advertising, Perth TV Advertising

Regional TV advertising areas cover all areas outside of the 5 capital cities.

Ratings Period

TV has traditionally been measured over a 40 week calendar, however all 52 weeks are surveyed by Oztam. TV stations still work to a traditional 40 week calendar, with ratings breaks in January, March/April and December.

Peak Night

Refers to 6pm to 9.30/10.30pm where most audience aggregates and engages in topline programming

Fringe Peak

Refers to 5-6pm, 930/1030pm – midnight

Off Peak

All other times

Linear TV

Is traditional TV where the screen/tv is connected to an arial.

Catch Up & Connected TV

Refers to streaming via an app on a device (mobile, IPAD, desktop) or where the TV is connected via the internet to an app like 9NOW, 7PLUS, SBS On Demand, Foxtel, 10 Play. A different set of ads is served to Catch and Connected viewers.

Buying Strategy

This can heavily impact the success of a campaign. Variables such as budget, time in market, the ratio of peak to off peak, the proportion of 30 second slots versus 15 second slots, program sponsorships, target CPMs and programming that engages viewers are key to delivering a successful campaign.

Rate Negotiation

An experienced buyer should have an established and long term relationship with the sales departments of each network. MPA has 20 + year relationships! The combination of the buying strategy, rate negotiation and the inclusion of bonus ads and sponsorships billboards is key to delivering a success campaign.

Bonus

Refers to no charge slots provided by the TV station.

Guaranteed Bonus

This is when we negotiate a guaranteed dollar value or TARP value of bonus to run with a campaign

Floating Sponsorship Billboards

These run at the pre, mid and post program and are ‘this program brought to you by’. We negotiate these as a no charge value add with your campaign. The billboards add frequency to the campaign.

Sponsorships

This refers to a category exclusive sponsorship of a peak night program.

Program Integration

We work with the programs producers to create exclusive in program content/segments, that is wrapped by sponsorship billboards and ads.

Free TV Australia

Free TV Australia is the peak industry body representing commercial television broadcasters. 

Clear Ads Australia.

Every TV commercial must have a Clear Ads number, known as a CAD number. This is run by Free TV Australia. Your ad is submitted to CAD for approval and a classification is allocated and any claims made in the commercial must be substantiated.

Audience Measurement OzTAM

OzTAM is Australia’s official source of television audience measurement, covering broadcast free-to-air viewing in the five mainland metropolitan markets; subscription television nationally and BVOD viewing on connected devices throughout Australia.

How much does a TV ad cost to produce?

There are a many variables.  Creative, talent, location, studio, cameras, lights, wardrobe, post production, music OR graphics, supers and stock footage. Our commercials start at $1500+GST for graphics based commercials and incrementally rise

What are the available tv commercial ad lengths?

Most commercials are 30 or 15 seconds in duration.

Other lengths are

• 180 seconds
• 120 seconds
• 90 seconds
• 60 seconds
• 45 seconds
• 30 seconds
• 30 second top and tail
• 15 seconds
• 15 second top and tail
• 10 seconds
• 5 seconds

Note: stations charge a load for commercials that are not 30 seconds. EG a 15 second commercial is charged at 60% of a 30 second commercial. An experienced media buyer will be able to negotiate a 15 at 50%.

How is a TV advertising campaign measured?

Reach & Frequency

Reach refers to the unique audience that will hear your radio advertising campaign and is measured in thousands of people

Frequency refers to the average number of times the unique audience will hear your campaign. We recommend a minimum of 3+ reach for the viewer to engage with your message.

TARPS

Total audience ratings points are expressed as a % of the target audience.

Gross Impacts

This is non exclusive reach of a campaign. If a person sees the ad more than once, it is counted more than once

Want to know how MPA Media can help with your next Media campaign? Contact us now or read on.