In Search of the Best of Both Worlds

ArabAd - - LETTER FROM THE PUBLISHER -

There's a new trend tak­ing shape, which, not sur­pris­ingly, will have ma­jor in­ter­na­tional me­dia com­pa­nies scal­ing back on the num­ber of com­mer­cials they air dur­ing prime­time shows. This change has been brought about by fierce com­pe­ti­tion for a younger au­di­ence mov­ing to de­vices and plat­forms that of­fer them an ad-free ex­pe­ri­ence.

This shift has also been af­fected by on-de­mand video sites as well as the tremen­dous clutter dom­i­nat­ing the mar­ket­place. The move, seen as un­prece­dented, is not only aimed at im­prov­ing the con­sumer ex­pe­ri­ence, but is also di­rectly re­lated to a new pric­ing mech­a­nism.

Though such news may come across as shock­ing, con­sid­er­ing that ad rev­enue is the prin­ci­pal stream for th­ese or­gan­i­sa­tions, a sig­nif­i­cantly smaller num­ber of ads will drive de­mand to new heights. In turn, this will also raise the price of TVCS. In other words, net­works should be able to charge more per slot since there will be less sup­ply and a greater like­li­hood of view­ers see­ing the promo.

An­other strat­egy be­ing con­sid­ered hopes to take mat­ters in a dif­fer­ent di­rec­tion by sub­sti­tut­ing the typ­i­cal two-and-a-half minute stream of com­mer­cials with a thirty-sec­ond in­ter­ac­tive ad.

Look­ing at the phe­nom­e­nal changes sweep­ing the global com­mu­ni­ca­tions’ in­dus­try like a tsunami, most, if not all me­dia con­glom­er­ates are fran­ti­cally look­ing for new ways to ad­dress the threat to best fit their ex­ist­ing cor­po­rate struc­tures.

To make mat­ters worse, the scale and growth of ad block­ing soft­ware high­lights the eco­nomic im­pact as­so­ci­ated with it. Us­age of ad block­ers grew by 41 per­cent year on year with an es­ti­mated loss of global ad rev­enue dur­ing 2015 at $21,8 bil­lion.

What the fu­ture holds for the com­mu­ni­ca­tions in­dus­try re­mains, in light of such changes, any­one’s guess. Yet what is clear, are the re­gional ad­vances made, which by most ac­counts, are set to el­e­vate the mar­ket and all those in it or wish­ing to en­ter, as po­ten­tial can­di­dates of this new revo­lu­tion.

On a more de­fin­i­tive note, we at Arabad wish our read­ers a Merry Christ­mas and a Happy New Year.

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