Monday, February 11, 2008

Welcome to the Outer Limits.

Just reading on SAI this post about TV ad costs being up while ratings are down. Head scratching money quote:

Says GroupM chief Rino Scanzoni: “No one is happy paying these increases when the ratings are down as much as they are. But it’s a supply and demand business, and demand right now is bigger than the supply.”

I don't get it either. I guess it's the exclusivity argument. Our audience is shrinking, therefore each one is worth more (since we're not going to cut our prices). At what point does that argument simply fall apart? My head hurts.

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