Advertising costs vary widely dependent upon media used, times, areas and size or impressiveness of advertising. Advertising costs are always considered in terms of the results, and clients usually demand measurement of results when calculating advertising costs.
Many advertisers advertise on both national and local levels, and here advertising costs vary widely. Newspaper advertising presents one of the lowest areas of advertising costs, but even here dollars can add up. Local newspaper advertising costs are relatively low: For instance a 2″ ad in a telephone directory can cost just a little over $50 per month. By contrast, a 4-line ad in a large newspaper would cost nearly $1000 a week.
Many advertisers supplement their national advertising campaigns with local radio advertising, where often advertising costs are surprisingly low. In a local radio station, the advertising cost of a 30-second commercial is only around $20. This makes local radio a very good medium for small businesses who must keep advertising costs to a minimum.By contrast, a local TV 30-second commercial represents an advertising cost of approximately $500. The advertiser must measure the effectiveness of TV as opposed to radio to determine if this advertising cost pays off.
Only large corporations and organizations can afford the advertising costs associated with network television. Apart from the cost of producing the commercial, the advertising cost of a 30-second spot on prime time TV runs upwards of $500,000! An advertiser needs to sell a sizeable number of $25,000 items to pay for a single TV commercial. And the huge advertising costs of TV advertising must be supplemented with print advertising, sometimes at both national and local levels.
Advertisers often use direct mail as an advertising medium, and the cost here is governed by a number of factors. In all probability the agency will be purchasing a mailing list, and this is part of the advertising cost of direct mail. Obviously the cost here will vary according to the size of the list purchased. The advertising cost must then include the actual cost of the mailing, which will probably be bulk mailing. The material being mailed can vary widely in cost, depending upon whether it is a simple single fold brochure or a beautiful 4-color catalog
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When an advertiser budgets the advertising costs annually, the company advertising manager has to consider all of the related advertising costs in addition to the media purchases. These advertising costs must cover production, which will include copywriting, art, photography, the preparation of presentations to the client, travel expenses and other miscellaneous expenses which relate to total advertising cost.
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