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Overview

Flo TV, created by Qualcomm, has successfully taken traditional television programming and created a mobile alternative. Flo TV services are supported by Verizon Wireless as well as AT&T Mobility. Television can now be watched on mobile devices like smart phones, personal TVs (sold for Flo TV purposes) and recently in-car televisions. The Flo TV network contains 19 different channels like MTV, Nickelodeon, CNN, CBS and more. Most of which are also carried by typical cable companies. Advertising on the Flo TV network is very similar to that of advertising on traditional television networks. However, with the concept of the mobile television it gives companies the opportunity to reach out to viewers wherever they are no matter what they are doing. Essentially the Flo TV is a portable ad space which customers take with them wherever they may go.

Why Advertise with Flo TV

Companies who choose use Flo TV as an advertising method are subject to advantages to those who stick to traditional media advertising mediums. The fact that Flo TV is mobile and is in the hand of the customer makes it that much more appealing to companies who want their ads to be noticed. Along with the mobility of the advertisements, Flo TV is a network in which customers need to sign up for. Customer must give information when registering such as age gender and location. Advertisers can specifically look at these specifications and advertise specifically at that one customer. Ads can be designed to fit the interests of distinct Flo TV watchers. Along with ads being designed for specific audience, Flo TV also offers , something at home television does not offer. Customers can explore advertisements they find appealing and investigate them more thoroughly.

Limitations

Although Flo TV offers advertisers new and unique substitutes to classic advertising, the average watching time of traditional television is far higher than that of Flo TV. The average American watches about 151 hours of TV a month or 5 hours a day which is an all time high (Nielsen, 2). With Flo TV being a product that was recently introduced, the average watch time is about 30 minutes a day or 2.1 hours a week(Stone, Interview) which does trump that of Hulu or any other online television viewing site. However with the watch time being significantly lower than that of traditional TV does create some advertising issues. Advertisements are much shorter than those present on classic TV networks. Flo TV commercials on average run for about 10 seconds compared to normal television commercials that run on average from 30 seconds to one minute. This gives advertisers far less time to work with in order to keep the viewers interested in their viewing content. The issue of coverage areas also poses a limitation when looking at Flo TV from an advertiser’s viewpoint. Because Flo TV operates by receiving satellite transmition, similar to that of cell phones, some areas receive exceptional coverage while others do not.


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sampel Flo TV coverage area. light purple represents 'good' coverage dark purple represents 'excellent' coverage



Costs

In 2008 the mobile TV advertising spending was $335 million and expected to jump to more than $2.5 billion by 2013 (Pearce 1). This shows the potential Flo TV and mobile TV as a whole possess in terms of advertising dollars.growth[1].jpg

Scheduling Strategies

The Flo TV network now offers things like “on demand” options as well as live feeds. This gives advertisers the opportunity to break out of the common television, commercial, and back to television strategy. With the on demand options and maneuverability that the Flo TV company offers, ads can be placed throughout the navigation screen on the hand held device itself. The scheduling that advertisers seem to choose when using the Flo TV medium is similar to that of traditional television. Smaller companies that have to strategically place their ads due to limited funds stick to flighting during times they feel will help increase their sales.

General Impact of Advertising

Not only is revenue for Flo TV produced by the subscription costs but also the ads and ad space sold. The Flo TV network relies heavily on advertisers to keep the company running properly.

Audience Qualities

The typical audience that use Flo TV and observe the advertising which is displayed on it are new age, up to date, trendy individuals. Since the product is fairly new, users must be current in technology. Flo TV users are generally younger but not limited to just this. Families have been known to purchase and use Flo TV and advertisers are mindful to this. As years go on and the Flo TV becomes a household name, as they hope it will, there will be no limitations on its audience.tv.jpg

Responsiveness

Unfortunately the interest generated for Flo TV has not been very high and numbers have shown that. The Qualcomm company has recently ran into financial issues concerning the Flo TV network and has had to make changes. Hopefully Qualcomm makes the proper moves to generate the interest needed in the near future.

Refrences

Stone, Bill. online interview. January 2010 http://www.youtube.com/watch?v=8etlx6rdJpE
Semuels, Alana. “Television Viewing at an All Time High” Los Angeles Times. February 24, 2009. http://articles.latimes.com/2009/feb/24/business/fi-tvwatching24
Butcher, Dan. “CNN mobile TV debuts on AT&T, Flo TV” March 15, 2010 http://www.mobilemarketer.com/cms/news/television/5669.html
Freeman, Mike. “Qualcomm scales back Flo TV” October 5, 2010 http://www.signonsandiego.com/news/2010/oct/05/qualcomm-scales-back-flo-tv/
Pearce, James. “Mobile TV To Be Biggest Ad Revenue Generator By 2010: Report” April 15, 2008http://moconews.net/article/419-mobile-tv-to-be-biggest-ad-revenue-generator-by-2010-report/