The Demand for Advertising on Television

Abstract

Television ads have become as much a part of watching TV as the programs themselves. They are such a ubiquitous component of network and cable television that they have developed their own sub-culture; popular commercials get brought up in conversation, and many commercial actors become famous for portraying their respective characters. For how prevalent television advertising is and always has been, though, it’s amazing how little is known about advertiser demand. While many academics have conducted studies on the effects of advertising, little research has been steered towards understanding why advertisers choose to advertise when they do, especially within the context of advertising on TV. My research revolves around answering this question, as I attempt to establish patterns that can predict when firms will choose to advertise. By looking at data on past advertising trends, I try to find a sense of consistency across firms and across industries and then use that information to analyze and explain any observed changes in behavior during highly rated telecasts.