TV Ad Spending Starts Nosedive

October 30th, 2016 Posted in TV Related

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Today I found an interesting article on the Media Life blog. It discussed the fact that while ratings are up for TV shows, ad spending on these shows is down 13.2%. So what does this mean for the television industry?  

 Honestly, I believe that this is just the first monetary sign that the once most popular sign is in real trouble. People simply don’t watch live TV shows and when they tape them they skip the ads. There are two possible solutions that I see that the television industry could do.

The first and obvious solution is to charge less for ads on their shows. This way they are still bringing revenue but at a competitive price that advertisers can live with. This seems to be the main method that the networks have chosen. However, many more decreases in revenue will kill the industry completely. This is similar to what we are seeing with the newspaper industry who relied completely on ads to bring in their operating budget.

The second option is to offer TV exclusive programing. This means to produce shows that will only air one time and on television only. This is something that networks are experimenting with and have had some success with live Broadway like exclusives.  

As a whole both are truly band aid solutions. Eventually it will not be profitable to own and operate in the traditional medium. I think it is sad and disappointing, but it is just the inevitable.

Let me know what you think in the comments section below.   

  1. 3 Responses to “TV Ad Spending Starts Nosedive”

  2. By Nicholas Martin on Oct 30, 2016

    I don’t know much about advertising but I found this article interesting. I think that the main cause for this shift is related to viewer habits shifting as well. With the ever increasing success of ad-free viewing experiences such as Netflix and Amazon Prime, the standards are being rewritten. Viewers are starting to value an ad-free experience even at the cost of a per-month premium. I’m not sure how standard TV can adapt to this shift.

  3. By Cameron Schwarz on Oct 30, 2016

    Since there are so many opportunities to watch TV shows without having to experience commercials is probably a big reason why those numbers are down. I still watch the same amount of TV shows on cable, but always try to watch them delayed on my DVR so I can watch it at my convenience and save time. Also, competitors like Netflix give quality TV shows without having to experience commercials.

  4. By Dan Mahoney on Oct 30, 2016

    I have to agree that a lot less people watch live TV shows now. I am a big fan of TV dramas/actions but for all of them, that aren’t named the “Walking Dead,” I don’t care much about missing an episode because I can watch them all on Netflix later. As for a solution, I can only think of temporary solutions like charging less for ads or having longer ad breaks to fit more ads in.

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