TV ad sales people take note: there’s a recession on, so you may want to start dropping them prices, mmmk? OK well you might not have anything to do with it, but from what we’re hearing (and reading) few networks have responded to the down economy like the rest of the world has: with recession specials that help offset decreasing media budgets.
The standard for most companies facing said cuts has been two-fold: lower product prices (whether it be socks or filet mignon) and lay-offs. Trim the fat and charge less for the meat, baby. So, why are TV ads still going for the going-rate? Because they can! But shouldn’t they be?
When it comes to having ones head up his/her ass, no one does it better than the proverbial TV/cable network. Overpriced, under-delivered content is the status quo in TV — especially when compared to digital offerings. Yet gobs of money are still wasted there. Sure sure, TV gets eyeballs, but as we near the end of the first decade of this century that phenomenon is going the way of the reality TV show (though no one has told MTV that, it seems…16 new reality shows planned for ’09).
Like newspapers, we assert that TV advertising will decline (at least until we all get our shit together) in relevancy. Well, we think it’s already happening, but catching up takes time.
Maybe we’re not the best example, but over the weekend we took in nothing but OnDemand and HBO content (Summer Heights High, watch it, love it). Nonetheless, as user selectivity increases networks will be hard-set to sell ad space for as much as they once did. It’s going to happen — it is happening — and if you don’t believe us, just ask yourself: what did you watch this weekend?
More: “TV Ad Spend Cutbacks: 0h $h!7”