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Prepared By
Dikshananda Bora (Roll No.- 441/15)
Waseem Akhter Ahmed (Roll No.Kuldeep Sharma (Roll No.-438/15)
Abhijit Pegu (R
Brief Introduction
Television has been the dominant form of entertainment in most
households for more than half a century and advertising has been the
lifeblood of the industry for nearly as long. Ever since Bulova ran the
first T.V. ad in 1941 at a cost of ten dollars, the commercial has been
considered the quintessential form of advertising for many marketers.
Television advertising has gone through many changes over past 60
years. For decades it was dominated by three major broadcast
networks (ABC, CBS and NBC), which could deliver more than 90%
of the prime time viewing audience on any given evening. However
with the growth of cable and direct broadcast satellite services, most
television households can now receive more than 100 channels that
offer various types of shows, news, sports, music, information and
other entertainment genres.
TiVo Inc.s introduction of the first DVR at the beginning of the new
millennium as these devices allow users to record many hours of
programming and easily fast forward through content when playing
back a recorded show. Though penetration of DVRs has been much
slower than expected, as the penetration of these devices increases,
additional changes maybe needed for measuring viewing audiences
and to stop customers from fast forwarding through commercial.
Other factors impacting televisions role as a king of advertising media
are continued fragmentation of viewing audience that is occurring
with the increase in number of channels available through digital
cable and satellite systems.
Television viewing patterns have also been impacted by technologies
that provide access to other forms of entertainment delivered on our
T.V. screens like video on demand.
Costs: Despite the efficiency of T.V. in reaching large audiences, it is an expensive medium in
which to advertise. The high cost of T.V. stems not only from the expense of buying airtime but
also from the costs of producing a quality commercial. Production costs for a national brand 30
second spot average nearly $4,00,000 and can reach over a million for more elaborate
commercials.
Lack of Selectivity: Some selectivity is available in television through variation in programs and
cable T.V. But advertisers who are seeking a very specific, often small, target audience find the
coverage of T.V. often extends beyond their market, reducing cost effectiveness. Geographic
selectivity can be a problem for local advertisers such as retailers, since a station bases its rates
on the total market area it reaches.
Fleeting Message: T.V. commercials usually last only 30 seconds or less and leave nothing
tangible for the viewer to examine or consider. Commercials have become shorter and shorter as
the demand for a limited amount of broadcast time has intensified and advertisers try to get
more impressions from their media budgets.
Clutter: The problems of fleeting messages and shorter commercials are compounded by the fact
that the advertisers message is only one of the many spots and other non programming material
seen during a commercial break so it may have trouble being noticed. One of advertisers major
concern with T.V. advertisement is potential decline in effectiveness because of such clutter.