Product Placement On Cable TV

The average U.S. household now receives a whopping 119 cable channels.  With packages ranging from a handful of the basic channels to packages  with over 500 channels,  the  large number of channels  will dilute ratings.  The growth of channels could actually  help  advertisers  in the placement products.  While consumers have a myriad of options, much of the growth has been in niche channels, such as Animal Plant or Cartoon Network.

These niche channels may receive lower ratings, but have a more targeted audience.  This smaller targeted audience allows advertisers to reach the consumers more likely or interested in a particular.  For  example, a new toy could be advertised on the Cartoon Network to reach the desired audience of children., or Home Depot advertising on the Home & Garden Network.

Also the dilution of ratings will reduce the cost of advertising on these niche channels.  Although they’re more effect of reaching their intended market.