Advertising on TV is not new, and therefore should be relatively simple. Prices for TV advertising obviously differ between countries because the target audience (or the population in general) is bigger or smaller. This shouldn’t be a reason for broadcasters to make indexes complicated, because the calculation of audience share is simple. The bigger the audience, the higher the price per commercial. This should be a linear line. Still, broadcasters make the calculation for TV advertising costs very difficult and unnecessarily complex for international advertisers.
The worldwide standard for buying advertising airtime is a 30 second spot, so let’s say this is 100%. The price for a 20 second spot therefore should be 66% of the price for a 30 second spot. Calculating these percentages for different TV networks we notice big differences. The price for French TF1 is 81% of the price for a 30 second spot, for Dutch RTL 70% and for Danish TV2 73%. The first conclusion is that in all the countries we analysed none of the 20 second spots are 66% of the price for a 30 second spot. This is because research in the past proved that “communication value” is not linear. Secondly, it is ‘easy’ money for broadcasters to not take this 66% as the price, but just decide themselves what they want the price to be.
ZIGT Media Agency Buying