RTV 3405 Lecture Notes - Lecture 5: Cost Per Mille, Kraft Television Theatre, Home Shopping

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When something is free, think again, you may be the product being sold. 1922 first documented toll broadcasting - selling time on airwave for commercials (10min comm for new apt complex, cost ) Single sponsorship ads emerged, in which an advertiser produced programs to broadcast. Offered entertainment programs to listeners instead of direct sales pitch. Single sponsor model carried over to early tv. Included anthology dramas which featured a distinct teleplay with new casts, etc, each week (kraft theatre, 22:00; 39:40) For networks: less control over programming, scheduling. For advertisers: cost of programs rising, risky to put all their eggs in one basket. Sell 1-2 minute commercial spots throughout program. Keep up with and distinguish from competition. Stave off competition (coke & pepsi spend so much money advertising against each other that it"s hard for others to compete against them, benefits coke & pepsi) Advertising is tax-deductible expense in the us.

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