Thursday, May 19, 2011

Infomercial Cost 2011

What is the cost to produce an infomercial? Infomercial Production Costs 2011? You guys keep asking. TV Infomercial costs? Cost of infomercial media? The calls and emails and searches continue. Thanks for visiting the Infomercial and DRTV Blog - a good place to get straight, real information on the wacky, wonderful world of TV Infomercials. Let’s look at some different formats and talk about the range of TV Infomercial Production Costs.

Short Form DRTV: Short form TV Infomercials are actually TV commercials with a response mechanism like a toll free number or URL or both. These spots are available in :120 second and :60 second lengths with :30 seconds used mainly for TV lead generation. Production costs vary according to the Direct Response Agency or Production Company and other factors including camera equipment, size of crew, etc. Many short form direct response television producers charge about $30,000.00 plus a royalty. Beware of any producers less than $10,000.00 because too many corners must be cut. However, some companies bundle services together and provide media services in lieu of a royalty.

In addition to Short Form TV Production, other costs associated with a DRTV launch include: TV media costs, inbound telemarketing setup, fulfillment and payment processing, as well as duplication costs. As you can see, it starts to get a bit complicated so it’s always best to work with an experienced professional, not someone getting their feet wet with your project.

Long Form TV Infomercials: These are really TV shows! Since 1984 when the length of commercials was deregulated, marketers have had the ability to fully demonstrate, create emotional testimony, and make a complete pitch to truly sell their products. It’s a unique marketing platform and creates all the video assets needed for every other new media platform in the 21st century. Since you must produce about 30 minutes of content, these productions naturally cost more than short form. Rates are all over the place. Some of the best known infomercials may have a multi-million dollar celebrity and others may be shot in front of a black curtain. Costs range from the down and dirty (avoid this!) to the ultimate shoots on The Red One. Choose your producer wisely. Again, many producers must make a substantial profit on your show, while others may work close with you and gain their profits with a rollout and substantial media buying. Some product developers and owners are looking for “partners” to fund the production. If you want to keep control of your product be careful. TV Production costs and initial media tests are very affordable, and there are media funding companies who will assist with a roll out without any equity in the product.

Additional costs for Long Form DRTV are the same as Short Form DRTV, except your duplications fees are higher. The trick is knowing which format works best with your product and establishing proper metrics and goals for success. Check some of our older blog posts for lots of information on these issues.

The bottom line: TV Infomercials and Direct Response TV commercials represent a low cost, high exposure advertising method that can take your product to marketing heaven.

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