Fox TV: Higher revenues thanks to shorter commercial breaks?
The U.S. television network Fox is trying to combat declining revenue with an alternative advertising strategy: In the future, there will generally be fewer commercial breaks during the network’s regular programming, but airtime for commercials will become more expensive. Is television advertising on the verge of a turnaround?
The US television network Fox is attempting to combat declining sales with an alternative advertising strategy. In future, there will be fewer commercial breaks in the channel's regular programming. In order to compensate for falling advertising revenue in this way, a higher price will be charged for the insertion. Fox hopes that shorter commercial breaks will reduce the audience's motivation to switch to another channel during this time.
According to Fox, the "remote-free" advertising model has so far only been used for a single program on Fox. The average amount of advertising shown during the one-hour broadcast was ten minutes, which is four to six minutes less than with the traditional model. On the viewer side, the changed strategy has certainly had positive effects. For example, the market research company Nielsen confirmed that the brand value was around 22% higher during the shorter commercial breaks compared to other programs broadcast at the same time. The number of channel changes was also reduced. There is still no definitive result regarding the economic potential of the model.
According to Fox, the "remote-free" advertising model has so far only been used for a single program on Fox. The average amount of advertising shown during the one-hour broadcast was ten minutes, which is four to six minutes less than with the traditional model. On the viewer side, the changed strategy has certainly had positive effects. For example, the market research company Nielsen confirmed that the brand value was around 22% higher during the shorter commercial breaks compared to other programs broadcast at the same time. The number of channel changes was also reduced. There is still no definitive result regarding the economic potential of the model.
