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Broadcast Ratings Continue to Tumble and the Future of Advertising

Overall ratings for broadcast channels are falling. This is no big news and has been long predicted. Here are the most recent stats of broadcast averages during premiere week are as follows:

NBC—3.0 vs. a 3.1 in 2013
CBS—2.4 vs. a 2.2 in 2013
ABC—2.2 vs. a 2.3 in 2013
Fox—2.0 vs. a 2.2 in 2013

This means that even while new programmes are premiering, ratings are still continuously dropping. Even primetime TV continues to fall. However these facts are all for American stations. The Guardian states that 86% of respondents skip TV adverts. One has to ask whether New Zealand is following a similar pattern.

New Zealand, which is ahead in the time zone but behind in every other development, is still experiencing success in television. However the traditional face, or screen of TV is changing. It is increasingly going digital as consumers are watching shows according to their own schedule using Internet TV and TVNZ On Demand. Also consumers are getting installments to skip over TV advertisements. 

One has to wonder how this impacts the future of advertising. Media sellers still place high value in “primetime” TV slots, with an advertising slot during Shortland Street being approximately $15,000. But perhaps in the future this value will continue to decrease if broadcast ratings follow a pattern similar to America’s. Possibly one day smaller businesses will purchase TV advertising slots as they are cheap with little reach. Bigger corporations might focus on digital media and product placements during shows. Some shows may become an entirely sponsored 30 minute advertisement. Disguised as entertainment of course.

Chelsea NZ's Hottest Home Baker

This can already be seen in shows including Chealsea New Zealand’s Hottest Home Baker, Miter Ten Dream Home and the Cadbury Dream Factory. All these shows have been sponsored by large businesses. Products from the companies are used, the logo is shown throughout and sometimes the contestants even seem to endorse the products.