||Since the fourth channels were legalized in Taiwan through the Cable Television Act in 1993, various cable channels were transmitted via satellite. With the advances in the transmission technology, the quality of cable television viewing greatly improved and the number of viewers also grew rapidly. After the popularity of cable television, the large number of channels attracted many advertisers, the advertising volume increased, and the advertising revenue increased year by year. Consequently, the local advertising agencies rose and developed, and their performance grew with remarkable annual turnover.|
However, in recent years with technological advances and development, the Internet usage rate in Taiwan increased year by year. Driven by the rapid spread and high popularity of the Internet, the web-based streaming video/audio servers rapidly emerged. The diversified, lively and interesting content and the development trend of such video/audio servers changed the Taiwanese people’s traditional habits of watching cable television, resulting in the continued decline in the number of subscribers and the popularity of cable television. Therefore, Internet advertising grew rapidly, and traditional media accelerated its recession, which affected the operation of the television advertising agencies, making them facing the survival crisis.
This study mainly examined the business strategy of cable television advertising agency in Taiwan. It reviewed and summarized the origin and development of cable television, as well as the operation of cable television advertising. Advertising agency A was selected as the research object to conduct the in-depth analysis of its business strategy. By adopting the case-study method of qualitative research, we not only collected relevant secondary information, but also conducted multiple in-depth interviews with the senior executives of Company A to understand the difficulties and challenges faced by television advertising agencies.
Based on the above research methods, the conclusions and recommendations are drawn as follows: 1. The continuous decline of cable television subscribers will affect the advertising agency industry; 2. The cable television advertising agencies actively expand to create a breakthrough opportunities. The proposals include: 1. Actively promote customer relationship management and commit to long-term operation; 2. Form inter-industry strategic alliances to expand business opportunities; 3. The future development of ad-brokering business should be oriented towards digital media; 4. Break away from the traditional information advertising, and adjust the form of advertising.
1. Aaker, D. A.(1984), “Strategic Marker Management,”John Wiley & Sons.
2. Ansoff, H. I. ,Corporate Strategy: An Analytic Approach to Business policy for Growthand Expansion, Hightstown: McGraw-Hill, (1965).
3. Asuncion, B., & Josefa, D. M. S., (1999) “Design and Validation of an Instrument for Measuring Advertising Effectiveness in the Printed Media” Journal of Current Issues and Research Advertising, 21(2), 11-30.
4. Barker, C., & Gronne (1996) Advertising on the web. Masters thesis, Copenhagen: Copenhagen Business School.
5. Chaffee, E. E. (1985), Three Models of Strategy, Academy of Management Review, 10(1), 89-98.
6. Chandler, A. D., Jr. (1961).Strategy and Structure：Chapters in the history of American industrial enterprise. Cambridge , MA：MIT Press.
7. Charles L. Whittier (1955) Creative Advertising, Holt.
8. Dijkstra, M., Buijtels, E. J. J. M. J., & Raaij, W. F. (2005) Separate and Joint Effects of Medium Type on Consumer Responses: A Comparison of Television Print and Internet, Journal of Business Research, 58, 377-386.
9. Ducoffe, Robert H., (1996) “Advertising Value and Advertising on the Web” Journal of Advertising Research 36(5): 21-35.
10. Glueck, W. F. Business Policy：Strategy Formation and Management Action,104 New York: McGraw Hill, (1976).
11. Hofer, C. W. & Schendel, D. (1978), “Strategy Formulation analytical concepts, ”West Publishing Company.
12. Kotler, Philip(1995) “Marketing Management: Analysis, Planning and Control”, Pearson Education Canada.
13. Miles, R. E. and Snow, C.C., “Organizational Strategy, Structure a Process”, McGraw-Hills Press, (1978).
14. Mintzberg, H., “Crafting Strategy＂,Harvard Business Review, (1987).
15. Porter, M.E., Competitive Strategy ：Techniques for Analyzing Industries and Competitors, N. Y. : Free Press, (1980).
16. Quinn(1988), The Strategy Process: Concepts, Contexts and Cases, Longman Higher Education.
17. Schultz. Martin & Brown(1984) “Strategic Advertising Campaigns”, Crain Books.
18. Thompson, A. A., & Strickland, A. J. (1981), “Strategy and policy: concepts and cases,”Texas: Business Publications.
19. Yin, R. K. , Case Study Research: Design and methods (2nd Ed.).Thousand Oaks, CA: Sage, 1994.