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More Wisdom on TV Ads May 5, 2004

Posted by David Card in Uncategorized.
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More sensible talk about commercial TV, courtesy Wall Street Journal interview with Joseph Abruzzese, Discovery’s ad chief.

On shifting ad dollars from broadcast to cable:

… I don’t think there’s going to be a 40% shift of dollars, but there could be a 10% shift [to cable]. A 10% shift could be a billion dollars. A billion dollars is 10% [to the broadcast networks], but in cable, because it’s smaller, it’s a 17% shift, a 17% increase in dollars for cable.

And

WSJ: What can cable offer that broadcast can’t? Does it matter that your audiences are smaller?

Mr. Abruzzese: I think we offer a little more integration in our products. When you look at what Home Depot has done on “Trading Spaces,” or what Procter & Gamble has done on a lot of shows using the Swiffer — we do a lot of that. It’s helped a lot.

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