Infomercial

DEFINITION of 'Infomercial'

A form of television advertisement that acts as a stand-alone program, and typically lasts longer than five minutes. Because an infomercial lasts longer than a regular commercial, it is able to present more details about a product or service and gives a company more time to present a persuasive call to action. Most infomercials will prompt the viewer to call a toll free number or visit a website to make a purchase several times during its run.


"Infomercial" is a combination of the words "information" and "commercial".

BREAKING DOWN 'Infomercial'

Infomercials came to prominence during the 1980s after the Federal Communications Commission (FCC) relaxed rules that limited the amount of commercial content that could be shown on television. This type of advertising is famed for appearing on television during off-peak hours, typically late at night or early in the morning. Advertising rates for these hours are lower than during the day, allowing companies selling their products to buy up more time than they would be able to if advertising on a popular television show.

RELATED TERMS
  1. Direct Marketing

    A form of advertising in which physical marketing materials are ...
  2. Below The Line Advertising

    In general, an advertising strategy in which a product is promoted ...
  3. Flighting

    An advertising scheduling strategy in which a business alternates ...
  4. Advertising Appropriation

    The portion of the total marketing budget that is allocated to ...
  5. Advertised Price

    The price of a product or service as displayed or announced in ...
  6. Advertising Federation Of America ...

    A regional advertising group based on the U.S. East Coast that ...
Related Articles
  1. Active Trading

    Conclusion

    Here are 5 strategies investors can use to double their investment.
  2. Investing

    Bye, Mad Men: How the Net Is Changing Advertising (FB, TWTR)

    The Internet and digital media are changing the way companies advertise and market themselves. More targeted, varied and faster advertising is possible.
  3. Investing

    Why Disrupting Television Will Take TimeĀ 

    The growing popularity of YouTube and Netflix has given rise to dire predictions about television's death. But here's why the medium may prove to be resilient.
  4. Stock Analysis

    Why Facebook Is Free to Use (FB)

    Learn why Facebook is free to users, and understand how the company makes more money by charging advertisers than it would if it charged users.
  5. Investing

    Advertising From TV To Internet: An Industry History

    Changes in television consumption habits have forced advertising to target audiences through new means, namely Internet advertising.
  6. Personal Finance

    Select Comfort

    Though they may seem like a rare breed these days, these organizations have built their reputations on just one item.
  7. Investing

    Trends And Growth In The Digital Advertising Industry

    The rapidly expanding digital advertising industry is leading a shift towards content and demanding forced innovation.
  8. Personal Finance

    How The Internet Web Ad Industry Works

    Over the past 10 years, advertising strategies have evolved as a result of technological development as the internet has provided new channels for advertisers to reach a larger audience.
  9. Investing

    How is Programmatic Advertising Changing Media?

    Understand what programmatic advertising is as well as the technology that drives it. Learn about the top four ways programmatic advertising is changing media.
  10. Investing

    The (High) Cost of Advertising in Times Square

    Advertising on a Times Square billboard costs more per impression than similar forms of advertising, but that doesn't mean it's not worth it.
RELATED FAQS
  1. What are the key differences between marketing and advertising?

    Understanding the role advertising plays in the marketing mix will help business owners define their promotional strategies ... Read Answer >>
  2. What is foreclosure investing?

    Foreclosure investing involves the purchase of houses that are somewhere in the process of being confiscated by lenders due ... Read Answer >>
  3. How important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ... Read Answer >>
  4. What's the difference between investment banks and commercial banks?

    Understand the principal differences between investment banks and commercial banks, and the areas of banking services that ... Read Answer >>
  5. How do Internet companies profit if they give away their services for free?

    Learn how companies in the Internet sector make a profit when service, content and user applications are offered at no cost ... Read Answer >>
  6. How can retail investors invest in commercial paper?

    Find out how individual retail investors can purchase short-term commercial paper, but why it rarely makes good investment ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center