Ad slots in TV news programming are not being sold at a high enough rate – but new developments which are reducing the number of ads seen by audiences could, ironically, end up raising their price.
That is the view of one man making media buying decisions at one of the world’s leading financial services institutions.
In this video interview with Beet.TV, Lou Paskalis, Bank Of America’s Senior Vice President, Customer Engagement and Media Investment, discusses the relationship between price and volume.
He talks about the recent trend with which some TV networks are now reducing the number of ads they show viewers – a response to growing complaints of excess.
“I’m actually happy to see the industry is maturing with regard to ad load,” Paskalis says. “The solution isn’t carving out more time for ads. It’s actually being able to deliver less ads that are more valuable to an individual which will have a higher take rate and will allow marketers to pay fair value for that.
“We give away advertising in this country today in some channels, and it really vexes me that I can buy a news audience for the same price that I can buy a primetime audience, when, in fact, we know that news audiences are six times more likely to recall your ad and five times more likely to engage with your ad. And yet they’re not sold at any kind of a price premium.
“I think that, when we get smarter about the relative value of audiences, those pieces of inventory will come at a significant premium, which will ultimately reduce ad load and improve the consumer experience.”
This video is part of the Beet.TV series title the Road to CES 2020, a preview of the topics expected to be explored in Las Vegas in January. The series is presented by Samsung Ads. For more videos please visit this page.