How tv makes (and will make) money

Posted: December 15, 2012 in Real Life

After doing something I (and much of Britain) admit to doing too much of, watching the blink box, I that today’s topic of discussion will be how they make money from us doing nothing. “Doing nothing?” You may ask. Well to start off we all know about those annoying things we call adverts, 5 minutes of our precious viewing time taken up between 4 and 6 times per hour. How do these little clips which many of us fast-forward make the tv companies millions. The entire point is to make you think a popular example are the adverts for John Lewis with the snowman link here where the advert, although terrible, sticks in your mind and implants a subliminal message. In this case the subliminal message would be “buy from John Lewis, we make people happy. :)” thus when you pass their store you immediately think of that. Depending on the timing and the channel an advert could potentially be worth anywhere from £100 to over £1million per go hence why the tv producers can afford to spend thousands on wall to wall cricket while still making a tidy profit (evidently someone can watch it without falling asleep) the advertising around a football field is a good example of some of the more subliminal techniques sometimes employed. The little wooden (or more commonly LCD) barrier or distorted poster on the ground may seem like normal sights but actually they are highly prized advertising points. Think about it, 715.1 million people watched the 2010 World Cup final alone (not quite 26.9 Billion total views but still…) Ok so you don’t remember what advert was up when the winning goal was scored but still it was seen by all 715.1 million people at once. It was subliminally implanted in the back of their mind and that is why the cost of advertising for the final was easily worth millions. A good share of this advertising profit goes to the TV companies but they also get the profits from the half time adverts. These all make a tidy profit for them in a reasonably short amount of time. All this from us doing nothing.
Now this is all well and good but the TV companies want to make it even more effective. We all know that there are TV services that let you watch stuff on demand with no advert breaks, so how do the companies get their money? First off they charge the providers for the right to show you these programs. Secondly they put in product placement this means that instead of mr Looble asking for a drink he will specifically ask for an [insert popular drinks brand here]. This one line can still be cheaper than an advert but is still extreme profit for the companies. Lastly they are going to use all that information that you give to them yes that means your address, email and even your phone number. This means they can track your location and then tailor the adverts to you. So instead of seeing an advert about somewhere 200 miles away you might see an advert for somewhere around the corner. This personalisation could be a big money spinner especially if there was a priority system introduced.

Anyway here goes the usual spiel. Thanks for reading if you want to see more follow @Loobleblog on twitter or click the link on the top left of the home page to get email updates when my daily update comes out.



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