When you're developing your advertising strategy for TV, your first step should be to determine exactly how much money you want to spend and then establish a working budget. This will help you gauge how much capital you'll really need in order to create and launch a successful TV commercial. To develop your budget, you'll need to know what it's going to cost to have the commercial made and what it'll cost to air it. These two costs comprise the majority of your budget.

The cost to have a commercial made and then aired will vary depending on several factors. Will you be making the commercial yourself? And how elaborate will the commercial need to be? When you're outsourcing the making of the commercial to a production company, these are the two main questions you'll need to know the answers to in order to help establish your baseline budget.

You can determine your production fee by first figuring out what type of commercial you want to create (complex or simple) and then how long it will take to capture video and audio, then blend it together into the final product. You can also negotiate this price with the production company you hire to produce the commercial. Prices and rates vary, but a general rule of thumb is, "The better the work, the higher the price will be."

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