The rate card is only the opening bid: what a TV campaign really costs

Anyone opening a television rate card for the first time tends to look for a single figure: what does a spot cost? They will not find one, and if they do, it will bear little resemblance to the invoice at the end of the campaign. The real cost of a TV campaign is built from several variables, each of which can be influenced — by the plan, the timing, the length of the spot and the negotiation.

Hence our one-line summary: the rate card is only the opening bid. Here is what comes after it.

Television is sold by the point, not by the spot

The basic trading unit of TV advertising in the Czech Republic is not an individual airing but the rating point, or GRP. One point equals one per cent of the target audience having seen the spot. A campaign is therefore bought as a volume of points against a chosen target group — “adults 15–69”, say, or something narrower by age and income — and the broadcaster spreads it across the schedule until that volume is delivered.

The number that matters is the cost per point, or CPP. It varies by sales house, by target group and by how the campaign is set up. A narrower audience usually carries a higher CPP, because the same spot earns fewer ratings within it.

The viewing data behind those points is measured for the Association of Television Organisations (ATO) by Nielsen Admosphere. That matters: broadcaster and advertiser are looking at the same numbers, so delivery can be checked after the fact.

Length factors: why a 20-second spot is not twice a 10

The rate card price per point refers to a reference length, typically a 30-second spot. Shorter and longer spots are converted using length factors. A shorter spot is cheaper, but not in proportion to its length — a ten-second spot costs considerably more than a third of a thirty.

That leads to practical choices. Sometimes it pays to launch with a longer version and switch to a shorter reminder cut for the second half of the campaign. Sometimes it is better to stick with one length and put the money into frequency. The answer depends on how much the spot has to say — a question worth asking before anyone starts filming.

Seasonal indices: the same point costs more in November than in July

Demand for airtime swings considerably over the year. In the run-up to Christmas nearly everyone wants to be on air; in summer and January, far fewer do. Broadcasters reflect this in seasonal indices that multiply the base CPP month by month.

For an advertiser this is one of the strongest levers on price. If a campaign does not have to run in the most expensive weeks, moving it by a few weeks can buy noticeably more points for the same budget. That is not always possible — seasonal products sell in season — but it should be a deliberate decision rather than a default.

Position premiums and other requests

The rate card assumes the broadcaster places the spot wherever suits it. Every additional requirement comes at a price. Typically:

• position within the break — first or last in the ad break draws more attention and carries a premium,
• a specific programme or daypart — fixed placement rather than free rotation,
• competitor exclusion in the same break, or other special conditions.

Some of these premiums earn their keep; others simply make the campaign more expensive without a measurable return. Only the objective can decide: a campaign building brand awareness mainly needs reach and frequency, not necessarily pole position in every break.

Discounts, volume and bonuses

On the other side of the equation are discounts. Sales houses work with volume discounts tied to total investment, early-commitment discounts and various bonuses — additional airtime, for instance, or better terms on the thematic channels they sell through their sales representation.

The specific terms differ by channel, by year and by who is buying. A buyer negotiating on behalf of several advertisers is in a different position from a single company entering television for the first time. Which is why the rate card price, on its own, says nothing about what the campaign will actually cost.

Where the outcome is decided

Put all the variables together and it becomes clear that the gap between a “rate card” campaign and a real one lies not in a single number but in a chain of decisions:

1. Target group — how tightly to define it so it matches real customers without inflating the cost per point.
2. Channel mix — how much volume goes to the main channels and how much to thematic channels, where CPP tends to be lower and the audience narrower.
3. Timing — when to run, weighed against seasonal indices and your own sales cycle.
4. Spot length — which length carries the message, and how to combine them.
5. Placement requests — which premiums add value and which do not.
6. Negotiated terms — discounts, bonuses and getting them in writing.

Each of these shapes how many points, and what reach, the budget buys. And each should be justified before the order is signed, not explained after the campaign.

What this means for the advertiser

When comparing proposals, “how much is a spot?” is the wrong question. The useful ones are: how many GRPs against my target group does this budget buy, what reach and frequency does that translate into, and on what terms? Only that can be compared like for like.

One more thing. Once the campaign ends, delivery should be checked against the plan. That is the campaign evaluation, and it is the natural continuation of the negotiation — a discount is only worth something if the campaign actually aired as it was bought.