2014 is the 30th anniversary of landmark cable industry legislation that helped pave the way for the proliferation of newly available cable channels. Since then, we’ve also seen a sharp decline in prime-time network television audiences.
You’d think these trends would lead to a decline in media costs to reach people: As prime-time eyeballs disappeared, that should have reduced the cost an advertiser would pay for them.
However, the exact opposite has happened. With reduced audience levels, ad rates (measured in “CPM,” or cost per thousand impressions) have actually gone up. Read the rest at BloombergBusinessweek.