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".

Investopedia explains '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.



comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  5. 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 be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
Trading Center