The Future of TV Advertising

Tracks trends in traditional television ad sales and the impact of new technologies, new competition.

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Proven senior level executive with over 25 years of leading turnarounds and startups of software companies in media, finance, energy and business intelligence. See more at Linked In.

Thursday, June 14, 2007

Restaurant Raises Prices Due to Drop in Quality!

Ok. That headline is bogus, but the one in Advertising Age is not! Networks Ask for Steep Increases to Make Up for Ratings Shortfall!

Seems that the new (more accurate) ratings system from Nielsen shows that people actually do skip ads with their DVRs! So the networks are say: "Well then, you need to pay us more per (actual) thousand!"

The article closes with:

"New technology is also giving marketers other venues in which to place their ads, including blogs and e-mail. Due in part to some of these factors, last year's upfront take was one of the lowest in several years, estimated at $8.5 billion to $9 billion, and marked the second straight year where networks took in declining volumes. "

So, why would you pay more, for less?


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