Abstract
Purpose This study suggests the development of forecasting model for local cable TV advertisement. In order to verify the expected effect of the suggestion, using the causal loop map of System Dynamics, the factors affecting the prospects of cable TV commercial market were divided into 5 groups. Then targeting 97 people involved in the cable TV commercial market in Busan, Ulsan, and Gyeongnam, a survey was conducted on their perception of the current status of local advertisement market and future prospect. Design/methodology/approach The analysis of the collected data shows that workers in advertising and advertisers perceive the influence of cable TV as an advertising media to be high, while clearly understanding the problems of cable TV commercial market. Based on this the effects on the prospects of cable TV commercial market were analyzed and a forecasting method called Weighted Moving Average was applied. In order to improve accuracy of the added value of Weighted Moving Average, the 5 factors were divided into qualitative factors and quantitative factors, and using Multi-attribute Decision Making method, all the factors were normalized and weighting factors were deduced. The result of simulating the prospects of cable TV commercial market using Weighted Moving Average, both qualitative and quantitative factors showed downward turn in the market prospect for the following 10 years. Findings The result reflects generally negative perception of advertisement viewers about the prospects of cable TV commercial market. Compared to the previous studies on domestic cable TV commercials that focused on policy suggestions and surveys on perception of current status, this study has its significance in that it used scientific method and simulation for verification.