Monday, February 7, 2011

Why does economics drive most media companies?

We live in a fast paced world where the bottom line in most situations is how much will it cost and how much do you stand to make. The economy is at the center of people’s daily lives dictating what they do. Mass media companies get their funding through the economy. If the economy is doing well then media companies do well and vice versa. When people are making money and the economy is stable media companies jump on the chance to increase their business. They spend and make money on advertisement spaces, hoping for increased sales because of ads people want to put out. An example would be the Super Bowl where companies spend millions to have their ad put onto the TV when the most people will be watching. With the vast types of media mediums in our world companies have many options and places to play their cards in the economy and potentially benefit. Media companies are being smart economists in situations like the Super Bowl. Not only do media companies need to focus on advertisements but also on the economy itself. The economy tells a lot about what people will be willing to do and spend, helping media companies to predict their businesses success.

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