A Study On Pricing Strategy Of TV Advertisement

The medium of TV advertisement is a sort of visual and audible resource which scramble for audience by providing acoustic and pictorial information. It is fast in propagation velocity, wide in reach rate, strong in seepage force and powerful in influence. With the development of economy and society as well as media technology, the transformation of influencing factors internal and external environment of TV adveritsement is changing the ecological environment of TV advertisement. In this situation, how to preserve and develop the living space of TV advertisement and adopt effecitve pricing strategy to gain maximized profits with the condition of pricing reasonably is a hot point in TV media.This paper analyzes the the present situation of TV advertisement and its pricing strategy as well as the pricing bases and pricing principles. Also, the pricing strategies are also studies according to stakeholder theory, auction theory and game theory. Based on that, the ariticle expounds the main influencing factors of TV advertisement’s pricing strategy from aspects of media’s resource and strategy, stakeholder, industry environment, and Macro-environment, then gives some pricing strategies of TV advertisement accordingly.It is demonstrated that the main factors supporting TV advertisement including advertiser, audience, TV medium and advertising message are in change, while the effect of some main pricing strategies is limited under certain condition. By studying the main influencing factors of TV advertisement’s pricing strategy, this paper considers media’s resource and strategy, stakeholders, industry environment, and Macro-environment, when generates pricing strategies, and puts forward three pricing strategies of TV advertisement as followed:the floating pricing strategy based on advertisement value, the second-price sealed-bid auction pricing strategy based on imbalanced supply and demand, and strategic alliance pricing strategy based on competitor’s games. It is hoped that the results of the study will contribute to decision making for TV media and advertisers as well as the sustainable and prosperous development of media industry.