Turner Broadcasting Systems (TBS) Hypothesis Test.

Essay by KinghighUniversity, Master's January 2006

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Turner Broadcasting Systems (TBS) conducted a survey recently to determine whether its one spot 30-second advertising during video-on-demand (VOD) broadcasting is beneficial to advertisers. TBS's hypothesis is that the 30-second spots are beneficial to advertisers as it brings about product interest and recognition. The article "Viewers Watch VOD Ads" describes how TBS validated this hypothesis.

Typically, advertising is available to advertisers and consumers ad nausea during a particular television program or in print. TBS started somewhat of a pilot program in its VOD market. This article explains that the philosophy behind TBS's pilot program was to avoid inundating viewers with multiple product advertisements and to show just one 30-second advertisement during the beginning of the broadcast. TBS believed that this advertisement method would be highly beneficial to the advertiser.

And, as the article explains, TBS conducted a study to determine just how beneficial the program is. The study was conducted on a target group of 1,000 men between the ages of 18 to 34, which, according to marketing research, is a difficult market to research.

The target's interest in a Norelco razor product was measured. The study measured viewers' "intent to purchase" the product, and the ad viewability and product recognition. (Whitney, D., 2005).

According to the research, the "intent to purchase" the razors rose 60%. (Whitney, D., 2005). A manager of Norelco's parent company, Philips, stated that the typical advertising market for electric razors is small by comparison to blade razors. Therefore, he was overjoyed with this data. "For us to take up by 60 percent is a nice piece of data." (Whitney, D., 2005). In addition, the study indicates that those who intend to purchase the razor rose 3%, from 5% to 8%, after the VOD was shown. According to this article, a 3 percent rise in market...