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Wake-Up Call from Facebook: TV Ad Pricing Needs to Change | Advertising Age

A new pricing system for TV commercials, based on the quality of ads as decided by viewers, is inevitable. If the internet has taught us one thing, it is that content is king — and a third of all content on TV is commercials. That a new pricing system is good in the long run for the advertisers themselves is also obvious, even if the first dose tastes like castor oil.

TV networks have long been in a position to charge more for bad ads and less for good ones. But yet again, like their narrow-minded predecessors, they opted for the comfort of the status quo. They feared that rocking the boat would drive even more dollars to digital. In fact, not rocking the boat has driven more dollars to digital. The losers to date: TV watchers, advertisers, and most of all, the TV industry itself.

A new TV ad pricing model will need to go beyond the ratings, and stickiness, that TV networks currently measure, and beyond the easy-to-measure data that Facebook collects. The TV industry will need to invest in the type of creative evaluation testing that big marketers use to test their ads, or at the very least, it should review these scores from a third party, like Millward Brown for example, in order to provide a discount to ads that score well.

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Wake-Up Call from Facebook: TV Ad Pricing Needs to Change.