What factors affect the revenue from television advertising?
The amount of time that a potential consumer spends by watching television, the number of people watching a particular show, and demography of the audience affects the revenue of television advertising. The time spent watching TV gives companies more time to sell products, which affects income. If fewer people watch TV than internet videos, the price of advertising will drop, as well as the income that the advertising company receives with advertising. In addition, the demographic group of the audience plays a role in whether the audience will respond positively to advertising. Finally, advertising companies calculate the cost of advertising into their budget.
Time spent time watching television affects television advertising because more time gives advertisers a better chance of selling potential consumers on the product. Some studies show that people spend more time online than watching TV. In this case, companies still have a chance to advertise; For example, they could insert video advertisement in front of Internet videos.
The number of consumers who follow the show affects revenue from television advertising. This is because the number of consumers exposed to ads is the maximum number of consumers who can buy a product or service thanks to this ad. Although television advertising is very convincing, television advertising yields will be limited if it is not exposed to enough people. While the quality of programming has an impact on how many people watch TV, timing is also very crucial. If there are not enough people up and interest in watching TV, it doesn't matter how good programming is.
Demography of people who watch TV affects television advertising income. For example, advertising focusing on middle -aged women may not be very effective if it is shown to people who follow the main sporting event that is not popular among women of this age. Revenue resulting from advertising increases when these adsThey are interested. TV advertising is most profitable if a large percentage of people watching it decides to buy a product or service for it.
To advertise on television, the company must buy time on the channel and the price of the advertising slot often rises rather than over time. Channel popularity, advertising time and total demand for this slot are factors that affect costs. The cost of advertising is sometimes so great that it is not worth it, because the advertiser cannot afford the costs in advance or do not believe that the ad will benefit more from the cost of advertising.