The more creative and elaborate the creative concept, the more likely it will result in higher production costs. For example, if the ad requires animation, visual effects, special equipment, multiple locations, or celebrity endorsem*nts, it will be necessary to hire more crew members and pay for additional equipment and services. On the other hand, if the commercial only requires stock footage and voiceover narration, the production costs will be significantly lower. Although the average TV commercial is 30 seconds, commercial lengths vary widely. TV commercials have strict length requirements and are usually sold in 15-, 30-, 60-, and 120-second increments. Normally referred to as “short form”, these are commercials that are 2 minutes or under in length. Although no longer as common, “long-form” TV commercials (also known as “infomercials”) can also be purchased in increments of 5 or 30 minutes in length. In short, the reason the length of the ad will impact the cost is simple: longer commercials will not only require more production time and additional crew members, equipment, and locations, they may also require more time spent in pre-production during the concept and scripting phases. A simple, 30-second spot may only call for a single-day production, whereas a 2-minute spot can span multiple days. However, if budget permits, it is always recommended to create a longer asset that can be edited down to shorter versions. The reason, per Thinkbox’s “The Importance of Time Length in TV Advertising" study, is that longer television ads, although more expensive to produce and distribute, are better at building narratives. Accordingly, viewers should be exposed to shorter ads after longer executions. Without a doubt, a commercial set within the confines of a studio or an ad shot in front of a green screen is going to be much more cost-efficient than one filmed on busy city streets. In addition, filming in a specific city or region may require additional permits, transportation costs, and accommodations for crew members. In the United States, Los Angeles and New York are often considered the best places to produce commercials due to the abundance of production companies and talent. That said, those locations can often be prohibitively expensive due to the higher cost of living and talent fees. For a small business, filming in a small market may be a better solution to keep expenses down.Commercial Concept
Commercial Length
Commercial Location
If multiple locations are required, it’s safe to expect production cost to increase as well. The greater the number of locations, the more people will need to be involved in the actual production (including actors/models/extras and crew). This means additional transportation costs and more equipment needed for lighting, sound mixing, etc.
Commercial Crew and Talent
The number of crew members involved in the production will also affect how much it costs. Whether in front or behind the camera, the larger the crew size, the more people need to be paid for their work. A commercial concept that calls for professional actors and/or additional production staff like an assistant director or makeup artist, for example, can quickly see expenses compound. In addition, a larger crew may also require more equipment, more locations, and more time to set up and break down.
The logistics of a multi-actor production will also have ramifications on cost. For example, a production with a single actor looking directly at the camera will only require one camera, whereas a production with two actors speaking to each other will require at least three shots, one of each actor alone and another where the actors are in the same frame. This will also result in additional editing costs, as editors must now cut between multiple shots to ensure a natural flow of conversation.
Another factor that affects production cost is the talent fee for hiring professional actors or voiceover artists. Depending on their experience level, popularity, and availability, talent fees can range from hundreds to thousands of dollars per day. Production may also be responsible for their travel expenses, accommodation, wardrobe, etc. Alternatively, advertisers looking to minimize cost can use non-professional actors such as employees or customers within the ad, but they may not have the skills or charisma needed to deliver a convincing performance.
Commercial Production Quality
A commercial’s production quality is crucial to persuading consumers that the advertiser is a legitimate brand and can be trusted. In the consumer’s mind, a subpar commercial is likely to equate to a subpar product or service.
The type of equipment used plays a significant role in the final output. However possible it may be to shoot a commercial with an iPhone, depending on where the ad will be delivered, this may not be the best approach. Although more than sufficient for consumer use, professional commercials require cameras capable of capturing high-resolution video.
Similarly, the type of audio equipment used will have implications on the end product. Having a professional microphone, audio recorder, and audio editing software will be the difference between having a clear and crisp-sounding commercial or a muddled and distorted mess.
The costs of a complete HD camera package, lighting equipment, and sound equipment can add up quickly, especially when additional crew members are required to operate the equipment. Despite that, investing in high-quality equipment and elevating production value can also increase the effectiveness of the commercial.
Commercial Post-Production
Once the commercial is shot, it’s time for post-production. Post-production often includes activities like editing, sound mixing, and visual effects. Not surprisingly, the length of the commercial (discussed previously) will dictate the level of effort during the editing and sound mixing process.
Visual effects will also affect commercial production costs. These effects can range from more standard motion graphics, animations, and title overlays to more complex (and more expensive) special effects like optical illusions, motion graphics, stop-motion animation, or computer-generated imagery (CGI).
Commercial Delivery Platform
Whether the commercial is meant to be distributed on a broadcast TV network or used for social media marketing may also impact the cost of production. Consumers have different expectations of the production quality of a commercial viewed on a large-screen television versus on a mobile device or computer. This is partly due to size of the screen on which it’s consumed but also due the caliber of the surrounding content.
A consumer on a social media platform will likely have a different perception of an “influencer” commercial shot on an iPhone than a consumer watching a prime-time network program on a 55-inch television. Advertisers looking to air their commercials adjacent to professionally produced content (such as cable or network programming) are advised to take a closer look into a professional video production company with the appropriate production equipment.
Smaller advertisers who use Facebook, Instagram, or TikTok as their primary media channels can avoid hiring expensive production companies. For these advertisers, an iPhone, an adequate microphone and lighting, and an appealing employee spokesperson may be the best solution.
