With digital platform disruption, television platforms have been experiencing the loss of audience and thereafter, the declining advertising. The audience is the potential customer, which is the value for a television broadcaster to sell advertising. The capacity of dissemination largely reflects a television broadcaster’s earning capacity. Accordingly, the advertising performance in the market is positively correlated to audience ratings. Drawing on a case study of Hunan TV, a Chinese television broadcaster, this paper approaches administrators in the advertising department from Hunan TV to identify the dynamics in its advertising. Introducing the new media platforms, i.e. apps, as the advertising partners and making co-production with them, Hunan TV attempts to spread the production risk and increase the advertising revenue and diversifies advertising revenues streams. The analysis is based on audience currency theory, in which the audience rating is regarded as the currency that provides advertisers with audience attributes of value, which will support the operation of commercial media (Napoli, 2012; Sanghvi, 2015; Nelson and Webster, 2016). In the emergent industrial circumstance, the ability to monetize the audience is critically competitive for television advertising.
Jun Wu, University of Glasgow, United Kingdom
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