Final answer:
Spot advertising is a targeted form of television advertising used by local businesses to reach their immediate market demographic, offering precise audience targeting through the use of data from television networks.
Step-by-step explanation:
Spot advertising is a method of television advertising in which airtime is purchased by local businesses to reach a specific market demographic. Unlike national network advertisements, spot ads are typically broadcast during station breaks between programs and can be targeted more precisely to local audiences. The ability to use sophisticated data gathered by cable and network television companies allows for a high degree of targeting. Many local businesses like retailers, restaurants, banks, and auto dealers utilize spot advertising to connect with potential customers in their immediate geographical area.
Given the nature of modern television consumption, with the rise of recording devices and different media platforms, traditional television advertising has seen a decline, prompting businesses to seek new ways to reach consumers. Notwithstanding this trend, television remains a powerful medium for advertising, with companies adapting their strategies to target viewers more effectively through spot ads that cater to regional or local interests.