Question

In: Economics

what are the advantages and disadvantages of broadcast and cable advertising for advertisers at the local...

what are the advantages and disadvantages of broadcast and cable advertising for advertisers at the local and national levels ? name an example of a likley local advertisement thag youve recently seen on television and likely national advertisement that youve recently seen on television ?

Solutions

Expert Solution

Broadcast TV Advertisements Cable TV Advertisements
S. No. Advantages Disadvantages Advantages Disadvantages
1 Mass Coverage- It covers the viewing time of average household on more than 1 TV from 5 hours earlier to 8-10 hours nowadays in a day High Production Cost- Biggest handicaps of TV commercials is its high cost of production which goes to around $1 million Selectivity- Cable TV allows advertisers specualized and narrowcating which inturn helps them to target their audiences better Limited Reach- Cable TV's reach is limited as compared to Broadcast TV
2 Relatively Low Cost- Despite huge outlays TV commercials ad's are relatively low cost and covers huge audience High Air-Time Cost-Typically an average air time cost ranges from $200,000 to $5,00,000 for 30 seconds ad which is a big disadvantage of broadcast advertisements Audience Dempgraphics- Cable TV users are more educated and millenials who are working ahence they are betters audiencies to taget luxury or high price items Fragmentation- As there are more than 50 channels on cable tv the advertisements have to ve on almost all channels to attract the audiences.
3 Some Selectivity- Television audienciences availability depends on the time they get to see , advertisements can be prepared and presented for target geographical audience by buying local and regional markets. Limited Selectivity- Broadcast advertisements are not cost effective and also do not change or have limited selectivity acccounted to the new changing audience trends. Low Cost- The best advantage of Cable TV advertisements are its low cost and better deals which attract advertisers. Quality- Local Cable TV has sometimes poor production quality
4 Impact- Television advertisements create a huge impact by displaying the product on large screens and colors and light. Brevity- Studies show that 60 seconds TV advertisements do remain in the memory of the audience than a 30 seconds advertisements Flexibility- Cable TV advertisements goes upto 2 minutes ans better tailor fit for programming environment. Zipping and Zapping- Same as in the cast of broadcast TV , audiences to change channels frequently to avoid advertisements.
5 Creativity- The varipus facets of televisions like light sound, color allows imaginative appeals Clutter- Television advertisements are surrounded by breaks like credits, pulic announcements etc hence audience sometimes do not connect and get confused while identifying the product. Testability- Cable TV is good medium to experiment new products and advertisement gimmicks
6 Prestige- As Television is most influential mediem hence big brands showcase theior advertisements on TV and sponsor shows. Zipping and Zapping- As audience of VCR or using remote controls do surf channels while advertisements are going on television that ia a disadvantage
7 Social Dominance- Many people have growed up with television as a window for their social environment hence they want to see all big events like olmpics , matches, space travels etc. on TV
Recent Advertisements Kitkat commercial Advertisement on Broadcast Television American Career College Commercial Advertisement on Cable TV

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