The CW Competition
Now Viewing The CW's competition in: TV Cable, Pay & Broadcast Networks
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What types of businesses are the most important advertisers for the company? - Companies in the beauty and household products, auto, pharmaceutical, and telecommunication industries are among the top national advertisers on TV. Locally, auto dealers, telecom companies, restaurants, and furniture stores are top.
What types of marketing are most effective for the company? - Major types of marketing include advertising on the station's own broadcasts and other media, and event sponsorship.
What sales channels are most successful for the company? - Major industry sales channels are advertising brokers, a direct sales force for large accounts, and internal sales staff for telemarketing and incoming orders.
In how many markets does the company operate? What is the ranking of those markets? - Market rankings are by size of audience and advertising revenue.
What market share do the company's stations get, on average? - Market share in a given locale depends on the number of owning companies and the number of TV stations.
How important is the Internet for selling ads? - Internet sales are increasingly important because many media buyers prefer to buy ads electronically.
How wide is the company's price range for ad time? - Prices for TV ad time vary greatly, from hundreds to thousands per minute, depending on the station, locale, audience demographics and size, time of day, and many other factors.
How competitive are the markets in which the company operates? - Competition can be high for audiences and ad revenue, especially when multiple companies operate stations in a market.
Competitive Landscape
Business advertising, program popularity, and consumer demographics drive demand. The profitability of individual companies depends on advertising volume, programming mix, and efficient operations. Large companies have advantages of market dominance, often owning the only TV stations in a geography. Small companies can compete effectively with special programming that attracts a targeted audience. Average annual industry revenue per employee is $350,000: broadcast TV averages $257,000 per worker and cable TV about $651,000.
Full Industry Overview For TV Cable, Pay & Broadcast Networks
Business Challenges
CRITICAL ISSUES
Dependence on Ad Revenue - Broadcast TV stations depend heavily on advertisers for revenue, because delivery is usually free to users, and cable stations need ads to supplement subscription fees. Ads account for 70 percent of US TV broadcasting industry revenue. Ad spending, however, is closely tied to the health of the national economy, as reflected in corporate profits and the GDP. The TV broadcasting industry competes for advertiser dollars with a variety of other media, including radio, outdoor display, newspapers, magazines, direct mail, and Internet sites.
Increased Competition for Audience - TV broadcasting competes for audiences with many forms of media transmission, in addition to radio and movies, the traditional competitors. Competitors include the Internet, especially video-sharing websites; DVDs; portable video device makers' content services; electronic games; and satellite radio. Although TV broadcasters also use some of these media, the growth in broadband, wireless, and satellite transmission may threaten conventional broadcasting as the primary media delivery system. Ad revenue at TV networks and stations depends on market share, which competing outlets can erode.
Industries Where The CW Competes
- Media
- Television
- Television Cable, Pay & Broadcast Networks
- Television
