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To calculate the cost of a TV advertisement, use the following calculation:
CPP X Nielsen Rating = Cost of Advertisement
Use SRDS to find the CPP (Cost Per Point) number. Go to the Nielsen website to find rating numbers for the recent top ten TV shows.
Find step-by-step instructions and links to the SRDS database and Nielsen website below. This provides rough guidelines for determining ad rates for academic purposes only - what you'd actually pay is based on many other factors.
Media advertising rates and contact information for thousands of U.S. and international media outlets.
Modules included for consumer magazines, newspaper, radio, TV & cable advertising outlets, and the digital website equivalents of each of those outlets.
Select TV > Local TV & Cable Stations from the top navigation bar in SRDS Media Solutions (linked at the top of the page).
On the TV page, choose Select DMAs and National Market on the far left side of the screen. DMA is an acronym for Designated Marketing Area, which means the geographic region where residents generally receive the same print news and local TV and radio stations. It is a defined area used by advertisers to target their campaigns based on the population's media consumption.
Select the DMA that is best suited to your brand or company -- where you want to advertise. You may select more than one DMA. Click Apply once you have made your selections.
Take note of the TV dayparts (different blocks of time as to help you create your advertising strategy based on programming and demographics) listed on the screen before you select your DMA. This will be important!
After selecting your DMA(s), browse the results and choose a TV station that you think may be a good fit for your brand and its consumers. Think about what programming is available on those channels/stations when making your selection.
Once you have selected a TV station, use the tabs to find information about the station. You will notice that unlike for magazines and newspapers, information on circulation/audience, and rates & policies is not available.
To find the advertising rates for your selected TV Station, locate and click the Resources icon in the top right corner. Select Resources > University Projected Rates TV from the drop-down menu.
Search for your DMA. Select the Rate report link for your chosen DMA.
Here you will see the Cost Per Point (CPP) Levels for your DMA. CPP refers to the cost of reaching 1% of your target demographic viewers. Select the CPP number for the most recent quarter and daypart in which you would like your advertisement to air. Write down this number. It is the first number needed to calculate the cost of a TV advertisement.
Next, go to the Nielsen website (linked at the top of the page). Find the rating for the top ten television shows. The Nielsen numbers are usually delayed a few weeks. Locate the rating for a television program that matches your TV station/channel. You can browse between the Prime Broadcast Network TV, Cable Network TV, and Syndicated Programs tabs.
Now that you have both the CPP number and Nielsen rating, you can calculate the cost of a TV advertisement. Use the following calculation: CPP X Nielsen Rating = Cost of Advertisement