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Television networks rely on advertising sales for generating a substantial proportion of their annual revenues, but are facing increasing competition from both traditional and non-traditional media outlets for the annual $150 billion US advertising market. Consequently, they are attempting to design better strategies for more effectively utilizing...
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... the above distribution of the efficiency parameter of advertisers and their willingness to pay function, an optimal strategy for the broadcaster segments the population of advertisers into at most four groups as described in Figure 1, with the thresholds T*, T**, and T*** demarcating the different market segments. 4 With this strategy, advertisers in the highest range of efficiency parameters (interval altogether. ...
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This study mainly aims to identify to what extent Bosnian companies established marketing strategies and the fit between their marketing and advertising strategies and possible benefits gained from the existing fit. Therefore, a developed survey is conducted on 132 employees through Bosnian enterprises. The gathered data is analyzed descriptively. The results suggested that companies have slightly well established marketing strategies. Furthermore, they seem to satisfy the harmony between their existing marketing strategies and advertising strategies. However, it is observed that companies could not get much benefit out of this fit. This study also identifies the influencing factors on marketing and advertising strategies of the firms and most preferred tools in advertising.
Keywords:
Marketing strategies, Advertising strategies, Benefits, Survey, Descriptive analyses
An important challenge faced by media broadcasting companies is how to allocate limited advertising space between upfront (forward) contracts and the spot market (referred to in advertising as the scatter market), in order to maximize profits and meet contractual commitments.We develop stylized optimization models of airtime capacity planning and allocation across multiple clients under audience uncertainty. In a short term profit maximizing setting,our results provide insight for capacity planning decisions upfront and during the broadcasting season. Our results suggest that broadcasting companies should prioritize upfront clients according to marginal revenue per audience unit, also known as CPM (cost per thousand viewers). We find that accepted upfront market contracts can be aggregated across clients, and served in proportion to the audience demanded. Closed form solutions are obtained in a static setting. These results remain valid in a dynamic setting, when considering the opportunity to increase allocation by airing make-goods during the broadcasting season. Our structural results characterize the impact of contracting parameters, time and audience uncertainty on profits and capacity decisions. The results hold under general audience and spot market profit models. Overall, we find that ignoring audience uncertainty can have significant cost for media capacity planning and allocation.
