- Series Information
- List of Figures
- List of Tables
- List of Boxes
- List of Contributors
- Why Are Prices Set the Way They Are?
- Airline Pricing
- Electric Power Pricing
- Health Care Pricing in the United States: The Case of Hospitals
- Pricing in Restaurants
- Pricing of On-line Display Advertising
- Consumer Credit Pricing
- Wireless Services Pricing in the United States
- For What IT’s Worth: Pricing Internal IT Services
- Television Advertisement Pricing in the United States
- Pricing in the Cruise Line Industry
- Less-than-Truckload Pricing
- Pricing in the North American Protein Industry
- Wine Pricing in the United States
- Pricing and sales practices at the Grand Bazaar of İstanbul
- Price Theory in Economics
- Models of Demand
- Game Theory Models of Pricing
- Behavioral Issues in Pricing Management
- Customized Pricing
- Nonlinear Pricing
- Dynamic List Pricing
- Sales Promotions
- Markdown Management
- Revenue Management
- Auction Pricing
- Services Engineering: Design and Pricing of Service Features
- Pricing in Business-to-Business Contracts: Sharing Risk, Profit, and Information
- Pricing and Inventory Management
- Structuring and Managing an Effective Pricing Organization
- Global Pricing Strategy
- Using Lean Six Sigma to Improve Pricing Execution
- Mastering your Profit Destiny in Business-to-Business Settings
- Current Challenges and Future Prospects for Pricing Management
Abstract and Keywords
Television advertisements in the United States are bought and sold in a highly idiosyncratic market whose structure appears to be unique. Specifically, 70–80 per cent of broadcast network television advertising inventory is sold in a hectic two-week period known as the upfront market, while the remainder is sold during the balance of the year in the so-called scatter market. This article describes how television advertising is bought and sold in these markets, with an emphasis on pricing. It begins by presenting an overview of the American broadcast television industry, followed by a description of the upfront and scatter markets. This is followed by a more detailed description of how prices and products are developed and sold in both the upfront and scatter markets. The article discusses the use of automated pricing and revenue management systems by the networks, and concludes with a short discussion of the changes that the industry is undergoing. The article focuses on the United States, although it mentions practices in a number of other countries.
Robert Phillips is Professor of Professional Practice at Columbia University and Founder and Chief Science Officer at Nomis Solutions. He is also Director of the Center for Pricing and Revenue Management at Columbia University. Dr. Phillips has years of experience in pricing and revenue management in a wide variety of industries including airlines, hotels, rental cars, automotive, air freight, cruise lines, retail, and financial services. He is the former CEO of Talus Solutions and of Decision Focus Incorporated and author of the widely used textbook Pricing and Revenue Optimization. Dr. Phillips has served as a lecturer at the Stanford University Graduate School of Business and has published in many journals. He received his PhD from Stanford University in Engineering Economic Systems.
Graham Young is Vice President, Revenue Management with JDA Software International. In his twenty-five-year career in revenue management and pricing, Mr. Young has led innovative visioning studies and successful pioneering implementations for more than thirty clients across the airline, hospitality, cruise, and media sectors worldwide.
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