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Review Essay Question for Exam:
Your company is considering the use of television to advertise its product. The CEO has asked you and the other members of the marketing department (your classmates) to evaluate this option. In particular you are to debate the following issue: Has TV advertising lost power?
Long deemed the most successful advertising medium, television advertising has received increased criticism as being too expensive and, even worse, no longer as effective as it once was. Critics maintain that consumers tune out too many ads by zipping and zapping and that it is difficult to make a strong impression. The future, claim some, is with online advertising. Supporters of TV disagree, contending that the multisensory impact of TV is unsurpassed and that no other media option offers the same potential impact.
Compare TV advertising with one other promotional channel.
Please provide a summary, and references. I need a sample so that I know how to format my answer on the exam.
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"Producing robust long-term forecasts of TV advertising revenues is challenging, given recent structural changes in the TV advertising market and future uncertainty around issues such as digital penetration."
Most of what we see on TV is "Image" or "Brand" advertising. The main idea is to make us feel good about the product or service. Image commercials are really a kind of propaganda; they are usually more expensive to make and can take a long time to work through. On the other hand, "Immediate Response" advertising attempts to get the advertisers to take some buying action right now, such as calling the advertiser. According to PricewaterhouseCoopers, multi-channel service will drive growth in TV advertising revenues over the next decade. Multi-channel advertising is increasingly a competitive constraint on, and substitute for, traditional advertising.
Audience fragmentation does not have a significant impact on total TV advertising revenues, but revenues are set to shift from the traditional commercial channels to the new multi-channel services as multi-channel increases its share of viewing. ...
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