TV networks use bulk selling, auction selling, and price lowering to sell advertising spots. Bulk packages are the most common and offer a mix of prime and weaker times. Auctions can generate high or low profits, while price lowering is a desperation tactic.
TV networks thrive and survive on advertising, so selling TV advertising spots is a primary concern for TV executives. There are three main techniques that networks use to sell TV advertising, regardless of whether the network is small or large. One of the most common forms of advertising selling is bulk selling, where the network will sell many different locations for one commercial. In an advertising auction, the network will run an auction during which people or businesses bid for certain times. Another method networks use if no one buys advertising time is to lower the cost until someone decides to buy some time.
The most common method of selling TV advertising is to sell bulk packages in which a company buys many different time slots at the same time. TV executives like this method because they get paid to run the commercial multiple times and can fill a lot of space at once; companies like this because it’s cheaper per ad than buying a single ad space. Depending on what the company is willing to spend, the bulk package will have different time frames. Most bulk packages offer businesses a mix of prime advertising times and weaker advertising times, such as early morning or late evening; companies on a budget can buy packs containing only weaker times, while more powerful companies can secure several main points by buying them as a package.
Auction selling TV advertising is another method used by TV executives to fill advertising slots. As with any other auction, the network lists a time slot and companies bid until a winner is declared. This method can generate a high profit or a low one. If the companies compete, the network can get more money from the time gap; if they don’t compete, a time slot may be sold at a drastically reduced rate, which occurs more often at off-peak times.
If no one is buying time slots, the TV networks start lowering the price of each time slot. This method of selling TV advertising is typically done in desperation when no one is buying advertising time and the network is demanding revenue. The network will keep lowering prices until a company decides to buy advertising time. Unless network TV is failing or has low viewers, this method of selling is usually temporary and prices return to normal once the drop in sales stops.
Asset Smart.
Protect your devices with Threat Protection by NordVPN
