TV Commercial Cost Calculator
Calculate Your TV Commercial Cost
Cost Breakdown
Key Takeaways
- A 30‑second TV spot can range from a few thousand dollars in local markets to several million in national prime‑time slots.
- The three biggest price drivers are production costs, media buying rates (CPM), and the audience size you target.
- Understanding rating points (GRPs) lets you compare costs across networks and time‑slots.
- Digital extensions (streaming, on‑demand) often cost less per impression but require separate budgeting.
- Working with an experienced ad agency can shave 10‑20% off your total spend through negotiated rates and efficient production.
When a brand asks, “How much is a 30‑second commercial worth?” the answer isn’t a simple number. It depends on where you air it, who’s watching, and how polished the spot is. In this guide we’ll break down every cost component, show you how to calculate a realistic budget, and give you practical tips to get the most bang for your buck.
30‑second TV commercial is a short advertising segment that runs for half a minute on broadcast or cable television. It serves as a quick, visual pitch to capture attention, build brand awareness, or drive immediate action. Because it sits at the intersection of creative production and media placement, its price reflects both artistic effort and audience reach.
1. The Anatomy of a TV Ad Budget
Think of a TV ad budget as three layers stacked on top of each other:
- Production costs - everything you spend to create the spot, from scriptwriting to post‑production.
- Media buying rates - the price you pay the network to air the spot, usually expressed as CPM (cost per mille, or cost per 1,000 viewers).
- Ancillary expenses - legal clearances, music licensing, talent fees, and ad‑agency commissions.
Let’s dig into each layer.
2. Production Costs - From Idea to Screen
Production is where creativity meets cash. In 2025 the average production spend for a 30‑second spot in Australia looks like this:
| Item | Low‑End | Mid‑Range | High‑End |
|---|---|---|---|
| Concept & Script | $2,000 | $7,000 | $20,000 |
| Talent (actors, voice‑over) | $1,500 | $5,000 | $15,000 |
| Production Crew & Equipment | $3,000 | $12,000 | $30,000 |
| Post‑Production (editing, VFX, colour) | $2,500 | $10,000 | $25,000 |
| Music & Licensing | $500 | $2,500 | $8,000 |
| Total Production | $9,500 | $36,500 | $98,000 |
Low‑budget spots often rely on stock footage, a single voice‑over, and minimal visual effects. Premium campaigns use high‑profile actors, custom sets, and complex CGI. Your brand’s positioning and campaign goals should dictate where you land on this spectrum.
3. Media Buying - Decoding CPM and Rating Points
Television advertising pricing is built on two fundamentals: CPM (cost per thousand impressions) and rating points (GRPs). Here’s how they work together.
3.1 What is CPM?
CPM translates the raw cost of a spot into a per‑viewer figure. A typical CPM range in Australia for 2025 looks like this:
- Local market (regional channels): $5‑$15 CPM
- National daytime: $20‑$40 CPM
- Prime‑time national: $80‑$150 CPM
- Special events (e.g., AFL Grand Final): $250‑$500 CPM
To calculate the media cost, multiply CPM by the projected audience in thousands. For example, a prime‑time slot with an average of 2 million viewers (2,000 thousands) at $120 CPM costs $240,000.
3.2 Rating Points (GRPs) and Reach
Rating points measure the percentage of a target audience that sees your ad. One GRP equals 1% of the defined audience. If a 30‑second spot delivers 8 GRPs in the 25‑54 demographic, you’re reaching 8% of that group.
Networks publish rating point tables each quarter. By multiplying the GRP value by the total audience size, you can back‑calculate the implied CPM.
3.3 Example Media Cost Calculations
Let’s walk through three realistic scenarios for a mid‑size Australian brand seeking national exposure.
- Daytime National (average 1.2 M viewers, $30 CPM): 1,200 × $30 = $36,000.
- Prime‑time (average 2.5 M viewers, $130 CPM): 2,500 × $130 = $325,000.
- Special Event (AFL Grand Final, 3.5 M viewers, $350 CPM): 3,500 × $350 = $1,225,000.
Notice how the audience size and CPM work together-prime‑time isn’t just about more eyes; it’s also about paying a premium per eye.
4. Ancillary Expenses - The Hidden Line Items
Even after you’ve nailed production and media, a few extra costs can surprise you:
- Legal clearances - rights for brand logos, product shots, or location permits (typically $1,000‑$5,000).
- Talent unions - actors’ guild fees can add 10‑15% to talent costs.
- Ad‑agency commission - agencies often take 10‑20% of the total spend for strategy and placement.
- Media monitoring - post‑air verification services run $500‑$2,000 per spot.
Allocate roughly 5‑10% of your total budget for these items to avoid overruns.
5. Putting It All Together - Sample Budget Templates
Below are two template budgets: a “Lean Local” version and a “Full‑Scale National” version. Adjust the numbers based on your market, target audience, and creative ambitions.
| Category | Cost |
|---|---|
| Production (low‑end) | $9,500 |
| Media (regional prime‑time, 500k viewers, $10 CPM) | $5,000 |
| Legal & Clearances | $2,000 |
| Agency Commission (15%) | $2,425 |
| Total | $18,925 |
| Category | Cost |
|---|---|
| Production (mid‑range) | $36,500 |
| Media (prime‑time, 2.5 M viewers, $130 CPM) | $325,000 |
| Legal & Clearances | $5,000 |
| Agency Commission (12%) | $43,740 |
| Total | $410,240 |
These numbers illustrate why a 30‑second commercial can vary from under $20k for a local push to over $400k for a prime‑time national blitz.
6. Strategies to Stretch Your Dollar
Want to get more impact without blowing your budget? Try these tactics:
- Bulk buying - Purchase a 4‑week or 6‑month package; networks often discount 10‑25% for volume.
- Daypart swaps - Air the same creative during early fringe (6‑7 pm) instead of peak (8‑10 pm) to shave CPM by 30‑40% while keeping decent reach.
- Hybrid campaigns - Pair a short TV spot with a longer digital retargeting sequence; the TV call‑to‑action drives traffic to a lower‑cost digital funnel.
- Co‑branding - Share production costs with a non‑competing brand targeting the same demographic.
- Use in‑house talent - Leverage company executives for voice‑over; authentic and cheaper than hiring a celebrity.
7. The Future of TV Commercials - Is Traditional Worth It?
Streaming platforms (Netflix, Stan, Amazon Prime) now sell ad‑supported slots. Their CPMs are generally lower ($15‑$45) but audiences are fragmented. If your brand targets cord‑cutters, budgeting a mix of broadcast and streaming can optimize reach.
Also watch out for addressable TV. It lets you serve different creative to households based on data, effectively turning a single 30‑second spot into multiple micro‑targeted versions. The price per impression can rise, but the ROI improves because you avoid wasted impressions.
8. Quick Checklist Before You Commit
- Define your primary audience (age, gender, income).
- Pick a daypart that balances cost and viewership.
- Set a realistic production budget - don’t over‑promise on creative.
- Negotiate CPM with at least three networks.
- Allocate 5‑10% for legal, agency, and monitoring fees.
- Plan for post‑air measurement (GRP reports, OTT analytics).
With these steps you can answer the original question confidently: the worth of a 30‑second commercial is highly variable, but the framework above lets you calculate a figure that aligns with your goals.
How is the price of a TV commercial measured?
The price is usually expressed as CPM (cost per thousand viewers). Networks provide average audience numbers, and you multiply CPM by the estimated audience in thousands. Rating points (GRPs) also help compare reach across different slots.
Can I run a 30‑second ad on a streaming service?
Yes. Services like Stan and Amazon Prime Video offer ad‑supported inventory. CPMs are usually lower than broadcast, but audience measurement differs, so you’ll need to track impressions through the platform’s analytics.
What are typical production costs for a high‑end commercial?
A high‑end 30‑second spot can cost anywhere from $80,000 to $150,000 in Australia, covering custom sets, top‑tier talent, advanced visual effects, and original music.
Is it worth buying multiple spots instead of a single prime‑time run?
Often yes. Frequency helps with brand recall. A series of three‑to‑five spots spread over a week can be cheaper per impression and improves recall compared to a single expensive prime‑time run.
How do I measure the ROI of a TV commercial?
Track key metrics: lift in website traffic, promo code usage, sales spikes during the flight, and brand lift surveys. Combine these with the total spend to calculate cost‑per‑acquisition or cost‑per‑lead.