According to the FICCI -KPMG Report (2011), India has almost 138 million TV households and

cable connections/ direct-to-home (DTH) penetration has reached close to 80%. Television
Audience Measurement (TAM) ratings state that, the television and broadcasting industry has
seen an upsurge of almost 100 million viewers in 2010 to reach a total of 600 million
viewers. This is very much Self-Explanatory. India is watching and thus, TV advertisement has
become the easiest medium to reach a larger population surpassing all age, gender, geographical
location and other demographics. Here we have given a brief overview of television advertising
in India and its cost implications.

television advertising
There are two main components of cost associated with advertising through television: Cost of
film making and cost of advertising. Here we have taken a real example of a television
commercial. The cost may vary depending upon products or services, leading actors involved
and type of commercials.
Cost of Film Making:-
The cost of making a TV advertisement is explained in the following figures:
Equipment Around INR 20,000
Crew INR 60,000
Production INR 1,00,000
Miscellaneous(Travel,etc) INR 50,000
Generally, the cost of making a commercial should be around 10-20% of the total cost of
advertising. So many brands tend to spend more on the frequency of ad impressions than on
commercial creation.
Cost of Advertising:-
Theres another cost that the advertisers have to incur. That is, the cost values of per 10 second
advertisement show on TV. The Cost of Advertising is influenced by the following factors:
Time The airtime on Weekdays are more affordable than weekends, while, the prime
time slots are more expensive than late night slots. For that matter, the airtime becomes
more expensive during seasonal periods like Christmas, Holi, Diwali, New Year, etc.
Channel The highly selective target audience can be reached with the help of the
selective digital channels. A little bit of research based on the channel figures helps the
advertisers to book their slots and the difference in cost exists on the basis of popularity
of the channel and the TV shows.
There are basically two types of commercials Branding and Immediate Response. Branding
commercials are more expensive to produce and needs to be broadcasted frequently, while, an
immediate response commercial encourages quick action from its viewers in terms of calling on
a number which is generally slotted for late nights.
This can be explained further with some statistics. The regular advertisers on TV such as HUL
or P&G pay Rs. 75,000-80,000 on primetime for a general entertainment channel, while an
occasional or seasonal advertisers shell out almost around Rs.1.2 Lakh for the same spot.
According to a Latest report(2012):-
Big Boss: Ad Rates Rs. 3 crore per 10 second, Title Sponsorship 35-40crores
KBC: Ad Rates Rs. 3.75 crore per 10 second, Title Sponsorship 20-25crores.
According to a KPMG Report, in 2010 advertisers have spent more than Rs. 10,300 crore on
television media and are expected to grow at a compounded rate of 16% up to Rs. 21,400 crore.