Advertising is a highly sophisticated business, capable of raising huge revenues. For many broadcasters it is still the major source of funding, and competition to attract advertisers is high. Ratings matter and adverts generate different revenue at different times of the day. Peaktime – the time most people watch, as they relax after school or work – is particularly profitable. One person looking at one advertisement at one particular time is called an 'impact'. Broadcasters and ad agencies want as many impacts as possible per ad. 'Frequency' is the number of times the same person watches the same ad. 'Coverage' is defined as the number of people watching the same ad or programme at the same time.
The effect of personal video recorders (PVRs) is complex. PVRs might threaten the industry but could let some viewers catch ads they wouldn't otherwise have seen. Even with fast forwarding, ads can be effective as viewers have to watch the screen to avoid overshooting. Brand recognition can be rapid.
Sponsorship as a source of funding is becoming more important. Sponsorship ads are a visual reminder that the programme is about to begin again, so people pay attention to them.
Schedulers plan in advance and have to work out who is most likely to watch TV at a particular time of the day, week or year. They take into account the moods of viewers and keep an eye on changing habits in society. For example, an increasing number of people may be at home during the day – mothers, the retired, people who are ill or unemployed, and students, and a particular group might change with time – for example, more people take early retirement now. Broadcasters inform programme-makers about what content they want for particular slots, and this can guide them as to where their ideas might be best placed.
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