# How is the TV advertising cost calculated?

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## Presentation Description

Advertising companies must know the formula for calculating TV Ad cost before hiring any production company. Go through this PPt to get more.

## Presentation Transcript

### How is the TV advertising cost calculated?:

How is the TV advertising cost calculated? Si ne ma Fi lm s. +1- 212 844 9659 +1- 323 902 7125

### Slide4:

For instance, let us assume that an advertising company wants to buy 10 television sites on a particular television show on one channel. If this television show is viewed by 20,000 viewers on average and the CPM of the television show is \$ 11.15, the cost of the television ad can be calculated as follows: Costing of TV advertisement = (Number of Spot) x (Number of viewers) x (CPM of the TV show) = 10 x 20000 x \$11.15 = \$ 2.230.

### Slide5:

This is the accurate and standard way to calculate the costing of a television advertisement. Every TV commercial production companies should determine the cost of the television advertisement before approaching the television agency so that no TV agency can deceive them.

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