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Notice more TV ads lately? You're not imagining it.
The amount of commercial time on cable TV keeps increasing as networks try to make up for shrinking audiences by stuffing more ads into every hour of television. That's despite years of promises to cut back on ads.
Last quarter, commercial time rose 1%, according to Michael Nathanson, an analyst at MoffettNathanson LLC. After declining in 2017, the volume of ads increased every quarter last year and expanded again in the first half of 2019, he said. Fox was the only major cable network group to lower its ads last quarter, cutting them by 2%, Nathanson said.
As TV viewership declines and more consumers jump to streaming services like Netflix, media companies have only a couple of options to generate the advertising revenue that Wall Street expects: They can raise prices, run more commercials or do a little of both.
"Look at the decline in ratings," Nathanson said. "Everyone's got pressure to make their quarterly numbers. Long-term, it's a very bad decision, but you don't want to miss your numbers and have your stock go down."
(Score: 0) by Anonymous Coward on Friday August 02 2019, @10:17PM (1 child)
"Long-term, it’s a very bad decision, but..."
(Score: 1, Insightful) by Anonymous Coward on Saturday August 03 2019, @12:05AM
I see it like the Campbell soup company hiring some executive who thinks watering down the soup is a smart business move.
Then don their suits and ties to make their business presentation that people are not buying much soup anymore.
I am so sick of those vitality pill and bags under the eyes ads I could scream.