Viewers often get annoyed by multiple advertisement we see in between our favorite programs. Sometimes we prefer not to watch anymore because we are already exasperated. But have it ever crossed your mind why we do have TV advertisements? And how important it is to the life of TV networks?
Television has actually the largest group of constituents, that is why brands or even political campaigns are targeting TV network to place their ads and let people get irritated by watching the same scenes over and over again. But still, it is influential. We buy the product, we listen to them, they earn income. And when they earn, they have money to pay the network who advertised them. So win-win. But what if, no brand, or no politician, place their ad to a network? What will happen to that network? Simple: NO INCOME.
Exactly what happens to GMA Network now. In the absence of election-related advertisement last year, their income dropped from P1.67 billion to P1.01 billion. GMA Network lose about 40 percent of their net income as disclosed by a stock exchange.
GMA Chairman and CEO Felipe Gozon said, “2014 was both challenging and rewarding. On one hand, our consolidated revenues dropped eight percent to P11.94 billion, while net income settled at P1.01 billion primarily due to the absence of political advertisements.” And this year, Mr. Gozon is optimistic that it will be better since it showed improvement already in the first quarter. “If the first three months are any indication, it reinforces our view that it will be a much better year for the company. Likewise, we see exciting times ahead for our viewers as we launch new, game-changing programs in the coming months,” he said.
