Should cheap low quality ads be charged more for their TV air time ?

Now that the US has finally got ratings for the commercial breaks (via minute by minute recording) the TV networks are all interested in maximising their ratings during the break (ie not losing too many viewers while the ads are on). Which is all good news for advertisers.

One of the things that affects viewing of the ad breaks is the quality of the ads. Low quality ads turn viewers away, and ruin things for all the other advertisers. Put around the other way, poor quality ads enjoy a bit of a ‘free ride’ on the audiences retained by the good quality ads. So should networks give discounts for higher quality, more entertaining advertisements ? And charge more for annoying and boring advertisements ?

Advertising agencies should encourage it, as it would be a further incentive for marketers to commission bigger budget advertisements. In fact it is potentially a win-win situation for everyone. Consumers get ads they actually want to watch. Advertisers get a financial incentive to produce these ads. And networks that feature higher quality ads should enjoy better ratings.

I’m hopeful that innovative networks will begin offering pricing along these lines and/or agencies or clients will start negotiating deals along these lines.

www.MarketingScience.info

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