Beyond the 30 Second Spot: Marketers Adding Alternatives to Television Advertising


A new survey, released today by the Association of National Advertisers (ANA) and Forrester Research, Inc. (Nasdaq: FORR), found that 78% of advertisers feel that traditional television advertising has become less effective in the past two years. The survey also found that marketers are exploring emerging technologies to help bolster their television advertising spend.

- Almost 70% of advertisers think that DVRs and video-on-demand will reduce or destroy the effectiveness of traditional 30-second commercials.

- When DVRs spread to 30 million homes, close to 60% of advertisers say that they will spend less on conventional TV advertising; of those, 24% will cut their TV budgets by at least 25%.

- While 55% say that their top executives are closely watching changes in TV advertising, most advertisers have not experimented with advertising on DVRs (49%) or video-on-demand (44%).

- Eighty percent of advertisers will spend more of their advertising budget on Web advertising and 68% of advertisers will look to search engine marketing.

- Advertisers are also looking at alternatives to traditional TV advertising and will spend more of their advertising budgets on: branded entertainment within TV programs (61%); TV program sponsorships (55%); interactive advertising during TV programs (48%); online video ads (45%); and product placement (44%).

- Ninety-seven percent of advertisers agree that the TV industry will need new audience metrics - other than reach and frequency - to report commercial ratings, not just program ratings to effectively measure TV advertising.


http://www.marketingtoday.com/research/0306/tv_advertising_less_effective.htm