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Analysis


Commercials, whether amusing or unpleasant, loved or hated, are nonetheless a tool which, through an Advertising Concessionaire and several Advertising Agencies, allows a Television Network to gain bigger revenues from Manufacturing Companies that aim at advertising their products.

Companies have the opportunity to invest money in proportion to the results they wish to achieve. In fact, the better the reputation of the television program (because of its quality, time of broadcast, etc.) in which they want to place their commercial, the higher the expense for the allotted slot (and certainly also the price of the final product), but also the higher the chances that the commercial will be seen by a very large number of viewers and, as a consequence, the advertised product will very likely enjoy a boom in sales.

Obviously, the higher the advertising investment of the Manufacturing Company, the higher the revenue of the Television Network, which can be used to purchase programs of a higher and higher quality. Therefore, a chain reaction is generated:

Good quality of broadcast programs = higher and higher quality of future programs.

Unfortunately, the situation described above was true for a long time, until the gradual turning back of the viewers, betrayed by what they considered almost a second home, contributed to cause the so-called “progressive impoverishment”:

Very poor quality of broadcast programs = poorer and poorer quality of future programs.

 

Conclusion


 

Is television advertising doomed to disappear?

In Italy, the publishing business heavily criticized the Gasparri Law, which still allows networks to include commercials in their programs. Nevertheless, we believe that the crisis in advertising investments has not yet been seriously considered by the Television Business, which seems to keep waiting... Meanwhile, revenues of Pay TVs keep growing, because, upon payment, they offer content without advertisement!

It is necessary to restore the trust of viewers, in order to improve the quality of the TV Medium.

Granted that the quality of a TV Channel has always been measured according to the intrinsic value of its programs and services, how can anyone believe that the new digital TV will be better, since it will still be financed almost entirely through advertising and it does not have A VALID FORMULA THAT SHOWS RESPECT TOWARDS END VIEWERS, so that they can be refrained from flicking through a wider and wider choice of television channels?

Thanks to SpoTv viewers will be satisfied and a new (and fatal) crisis in advertising investments will be avoided.

 

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