Final answer:
National advertisers face difficulties with spot advertising because it hinders their ability to adjust to local market conditions, with variations in pricing and complexity in purchasing time slots from multiple local stations.
Step-by-step explanation:
The problem encountered by national advertisers when using spot advertising is that it does not permit the advertisers to adjust to local market conditions effectively.
Spot advertising involves purchasing time slots from local TV or radio stations individually, rather than through a network, which can be targeted to specific geographical markets.
Although spot advertising allows for a granular level of market targeting, the significant variation in pricing policies of local stations compared to networks and the complexity in acquiring time slots from multiple stations can pose challenges to advertisers who want to create a unified national campaign that also resonates on a local level.
Technological advancements have led to a shift in how consumers interact with traditional advertising mediums, with many choosing to bypass them altogether.
This has reflected in a decline in advertising revenue for conventional television and print advertisings, leading companies to search for new strategies. On the other hand, large advertising budgets can serve as a barrier to entry for new competitors aiming to challenge well-established brands.