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TV Stations Reducing Inventory to Drive Demand?

If you’re like most people, the last thing you do every night is lie around on the couch and watch television. Millions of people at any given time are watching television. For this reason, television advertising through traditional marketing channels  can be expensive.

Even Less Opportunity?

What if the amount of ad times available was even less? If there were even fewer TV commercials – could networks charge more? The value suddenly increases the more rare it is, does it not?

In recent years, the company Viacom, which owns channels like Comedy Central and MTV, has seen significantly lower ratings. Expert analysts attribute this decline to commercial time. Per hour, Viacom will begin to run fewer ads per hour, skimming off about three to four whole minutes.

How Much Are You Willing to Pay?

The bigger the advertiser and the more it is willing to pay, the better the slot it receives. Those companies will most likely receive slots within the first commercial break of the hour and closer to the actual program.

More competition and fewer opportunities will definitely increase the price of TV advertising. It also depends on how long the commercial breaks are. Are there seven- to eight-minute breaks once or twice during a show, or are there multiple two- to three-minute breaks broken up during the program?

TV spending budgets for companies interested in traditional marketing channels will most likely have to increase. Depending on channel, network, season, and time, TV advertising can prove extremely successful. For this reason, it is important to be well informed.

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