With the recent announcement of the CW Network airing 50 Atlantic Coast Conference (ACC) football and basketball games, the amount of live sports inventory increased substantially. Some would argue that there is a glut of inventory, hence a buyers' market. But as money continues to move out of Prime and into other dayparts, pricing your live sports becomes more of a priority as the competition for dollars will increase.
Recently I underwent a medical procedure that required an extended period of rehabilitation and recovery. Suffice it to say, during that time, I watched a ton of local television. I was sequestered in a medium-sized market in Iowa and arrived at these three observations from my viewing in May.
Different types of demand require different pricing strategies. Inelastic demand refers to a situation where a change in price has a relatively small impact on the quantity of a product or service demanded by buyers. In other words, buyers aren’t price sensitive.
As we shared in last month’s blog, when prices fall, demand generally increases. When a station uses the strategy of “pricing for share” it involves lowering the price in an effort to make the station’s inventory more attractive to buyers, thus encouraging them to buy more. Having one advertiser “buy more inventory” might be good in a specific instance, but if this strategy is utilized universally with every advertiser, it can lead to problems. Here are a few points to consider:
With the Tokyo Olympics just around the corner, we wanted to share data and observations from our client stations. The data presented represents an analysis of Summer Olympics and the revenue impact to NBC and non-NBC stations, based on ShareBuilders data from 2002-2020.