| Abstract: | With a limited supply of just one marketable resource, that of time, television commercial rates have to be set with a high degree of care. Under constantly changing conditions of demand and competitive intensity a station's profits can be impaired by under pricing as well as by overpricing its inventory of available time. This article, as the first in a two part series, describes the process that stations follow to set the most profitable of rates with a minimum of risk. In a sequel article to be published in the next issue of the Journal of Advertising suggestions are made to advertisers for creating time purchase strategies under different demand and competitive situations. |
