Tuesday, January 8, 2013

The evolution of TV advertising

People watch TV much different than they used to 20 or 30 years ago. So many people do not watch their shows live. They watch them via DVR or streaming online from the network's sites or from services like Netflix. For example, I watch Curb Your Enthusiasm via DVDs only since I do not have an HBO subscription. It used to be that prime time television would garner huge viewership night after night. Therefore, advertising rates would be the highest for that period. But now, many people skip commercials with their DVRs, so does the old method of charging more depending on time of day make sense? A show that airs Monday at 8 pm might be watched on Wednesday at 6 pm. Product placement within shows is common since TV executives know that viewers are skipping commercials. There is an art to doing this. You don't want to make it too obvious since viewers would be turned off if it is too blatant. Anyone who has watched Undercover Boss on CBS has experienced a full hour of product placement. Often times, the best shows are on networks with zero advertising such as HBO or Showtime. Also, some of the best shows are on the minor cable channels, such as the critically acclaimed Mad Men on AMC. The viewership on AMC is small when compared to ABC, CBS, NBC and Fox. Networks like AMC have small numbers of viewers but those who watch are loyal to the shows they enjoy. More on this topic is explored in this article from Advertising Age: http://adage.com/article/digitalnext/time-kill-day-part-tv-advertising/239045/.

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