One of the benefits of a sluggish economy seems to be that leaner times in advertising and media have made it a lot easier for small businesses to market themselves. The costs involved in formulating marketing campaigns, creating ads and placing them are all down, and as a result, marketing has become a lot more affordable. Furthermore, small businesses getting involved in advertising for the first time are also providing work for start-up production companies, and filling otherwise unsold media spaces, so it’s a win-win situation all around.
The average 30 second TV commercial, taking into account multiple shots and a large group of actors, costs around $130,000 to make, according to the American Association of Advertising Agencies. That’s down from $200,000 just a few years ago. There’s no doubt that the economic downturn has made the process cheaper than ever. Producers are working for less, advertisers charging less, and businesses hit by the recession are paying less, in an effort to reach out to new customers.
According to the Nielsen Company, on a nationwide scale the average cost of airing a 30 second spot on television was $921 last year, as opposed to $1,109 in 2008. Spots on cable stations are always a lot cheaper than those on standard TV stations, but experts have found that even those already low priced cable spots are down as well. This means that many independent retailers can afford a level of marketing/advertising that had been beyond their reach up until now. This is an opportunity being grabbed by many looking to use higher visibility on TV, billboards and the Internet to help boost their businesses. “Smaller clients can definitely get more for less now,” says Michael Knott, SVP and media director of West Coast operations for the ad agency, Draftfcb. “There’s more of a willingness from vendors to work with you, offering lower rates and more value for your money.”