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Financial Considerations
How muchit will costto create an advertisementwill be dependentuponalotof things.
Firstof all a productionbudgetwill needtobe negotiatedbetweenthe clientandproductionteam.
The amount there willingtospendwill have abigimpactonhow successful the outcome of the
advertisementwill be.Theyneedtoconsiderthingssuchashow good of a qualityadverttheywant,
whentheywantitairedand on whatstation- obviouslythe more theyspendthe betterstationand
time slotthey’ll be given,meaningthe bettermarketedthe clientwillbe. Itoftenhelpstoknow
whoyou’re targetaudience is- there’snopointinspendingthousandsof poundonaproduction
budgetto airand adverton a popularmainstreamstation,if you’re targetconsumerslistentoa
smallerrockstationforexample.
The nextthingto considerishowmuch it’ll costformusicroyaltypaymentsandlicencingtouse
copyrightedmusic.Musiccan have a bigimpacton an advertisement,thereforeyouwanttobe
usinga popularsongthat’ll make the clientscompanymemorable. Here inthe UK the ‘PRSfor
music’licence musictoproductioncompaniesandstationsandactas a royaltycollectionand
distributioncompanyfortheirownclients- the artists,musiciansorcomposers.Bychoosingasong
that requiresyoutopay royaltypayments,the clientneedstodecide whetherit’sworthusingit- if
your advertisementisn’tgoingtobe reachinga lotof people,meaningyou’re notbringinginalotof
consumers,itmaynot be worth loosingsomuchmoneytoroyaltypayments.
Usinga voiceoverartistcanbe expensive,howeveritmustbe done. The betteryourvoiceoverartist
the more expensiveit’ll costtohire them, howeverusingthe wrongvoice will onlyhave abadeffect
on the commercial. There are a varietyof agenciesall acrossthe countrythat providesonline
portfoliosof voice artists;anexample of anagencyis‘LipServices’inLondon.
http://www.lipservice.co.uk/
Once the clienthasdecidedhowmuchthey’re willingtopayforan artist,the producerand
copywritercanlook throughthe portfoliosandchoose whotheythinkissuitable forthe job.
Althoughaprice isn’tprovidedonthe website,theytypicallycharge between£400 to £1000
dependentonexperience. The more youpay,the bettervoice you’re getting.
Most radio stationsnowuse rate cards- thisisa documentthat providespricesanddescriptionsfor
variousplacementoptionsontheirstation. Key103are a popularmainstreamradiostationhere in
Manchester- here isan example of theirrate card:
Key103 are an example of astationthat providesapackage deal;for£2910+VAT, they’ll airthe
advertfor an entire weekandproduce the advertforyou.Thiscan sometimesbe acheaperoption
rather thanpayingfor everythingindividually- especiallysince the stationgeneratesabigaudience.
Whenan advertis airedisan importantfactorto the clientssince theywantitto reach as many
people aspossible.Fromthisrate card we can see that Key103 will airthe advert80 timesovera
space of a week,withitbeingplayedthe mostduringdrive time- thisiswhenthe stationwill haveits
highestnumberof listeners.
Althoughitisfinanciallyexpensivewhenproducinganadvertisement,there more the clientiswilling
to put intoitthe more they’ll getoutof it.

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Financial considerations

  • 1. Financial Considerations How muchit will costto create an advertisementwill be dependentuponalotof things. Firstof all a productionbudgetwill needtobe negotiatedbetweenthe clientandproductionteam. The amount there willingtospendwill have abigimpactonhow successful the outcome of the advertisementwill be.Theyneedtoconsiderthingssuchashow good of a qualityadverttheywant, whentheywantitairedand on whatstation- obviouslythe more theyspendthe betterstationand time slotthey’ll be given,meaningthe bettermarketedthe clientwillbe. Itoftenhelpstoknow whoyou’re targetaudience is- there’snopointinspendingthousandsof poundonaproduction budgetto airand adverton a popularmainstreamstation,if you’re targetconsumerslistentoa smallerrockstationforexample. The nextthingto considerishowmuch it’ll costformusicroyaltypaymentsandlicencingtouse copyrightedmusic.Musiccan have a bigimpacton an advertisement,thereforeyouwanttobe usinga popularsongthat’ll make the clientscompanymemorable. Here inthe UK the ‘PRSfor music’licence musictoproductioncompaniesandstationsandactas a royaltycollectionand distributioncompanyfortheirownclients- the artists,musiciansorcomposers.Bychoosingasong that requiresyoutopay royaltypayments,the clientneedstodecide whetherit’sworthusingit- if your advertisementisn’tgoingtobe reachinga lotof people,meaningyou’re notbringinginalotof consumers,itmaynot be worth loosingsomuchmoneytoroyaltypayments. Usinga voiceoverartistcanbe expensive,howeveritmustbe done. The betteryourvoiceoverartist the more expensiveit’ll costtohire them, howeverusingthe wrongvoice will onlyhave abadeffect on the commercial. There are a varietyof agenciesall acrossthe countrythat providesonline portfoliosof voice artists;anexample of anagencyis‘LipServices’inLondon. http://www.lipservice.co.uk/ Once the clienthasdecidedhowmuchthey’re willingtopayforan artist,the producerand copywritercanlook throughthe portfoliosandchoose whotheythinkissuitable forthe job. Althoughaprice isn’tprovidedonthe website,theytypicallycharge between£400 to £1000 dependentonexperience. The more youpay,the bettervoice you’re getting. Most radio stationsnowuse rate cards- thisisa documentthat providespricesanddescriptionsfor variousplacementoptionsontheirstation. Key103are a popularmainstreamradiostationhere in Manchester- here isan example of theirrate card:
  • 2. Key103 are an example of astationthat providesapackage deal;for£2910+VAT, they’ll airthe advertfor an entire weekandproduce the advertforyou.Thiscan sometimesbe acheaperoption rather thanpayingfor everythingindividually- especiallysince the stationgeneratesabigaudience. Whenan advertis airedisan importantfactorto the clientssince theywantitto reach as many people aspossible.Fromthisrate card we can see that Key103 will airthe advert80 timesovera space of a week,withitbeingplayedthe mostduringdrive time- thisiswhenthe stationwill haveits highestnumberof listeners. Althoughitisfinanciallyexpensivewhenproducinganadvertisement,there more the clientiswilling to put intoitthe more they’ll getoutof it.