Can Twitter Save Television Advertising?

It is no secret that television advertising is not what it used to be. The “Tivo” effect has resulted in many television viewers avoiding commercials all together. 40% of households now have a DVR. Other options for commercial-free viewing including online streaming through Hulu or Netflix, On Demand programming, and whole seasons of programming available on DVD.

With all of these viewers avoiding commercials, advertisers are not willing to pay the big dollars for advertisements that no one will see.  If, as a network, you are able to convince viewers to watch your show live (and thus the commercials) you will be able to command top dollars.  With less legitimate advertising slots available advertising rates for live events have risen dramatically.  The best example of this is the Super Bowl.  While television advertising rates have steadily declined, the rates for the Super Bowl have experienced a dramatic rise.