One of the most important surveys of national advertisers conducted over the last decade shows that before long new media and technologies will radically alter the way their TV ad dollars are spent.
Results of a survey by the Assn. of National Advertisers (ANA) and Forrester Research of 133 advertisers whose ad budgets exceed $20 billion was presented at the ANA Television Advertising Forum in New York last week.
“Television networks continue to publish research that traditional TV advertising is potent as ever, but national advertisers aren’t buying it and seek alternatives to enhance their budgets and move them beyond the customary 30-second spot,” said Josh Bernoff, Forrester vice president who made the presentation.
The study asked advertisers their attitudes towards TV advertising and what impact new technologies, such as VOD (video-on-demand) and DVRs (digital video recorders)?which could climb to more than 30 million households by 2009?will have on their spot budgets.
Some survey highlights:
- Seventy-eight percent surveyed believes that traditional TV advertising has become less effective in the past two years.
- Nearly 70% percent of respondents believe think DVR and VOD will reduce or destroy the effectiveness of traditional 30s.
- When DVRs spread to 30 million homes, close to 60% say that they will spend less on conventional TV advertising; of those, 24% will cut their TV budgets by at least 25%.
- Eighty percent of advertisers will spend more of their ad budgets on Web advertising, and 68% will look to search engine marketing.
- 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 VOD (44%).
- Advertisers are also looking at alternatives to traditional TV advertising. They 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% percent).
Advertisers were virtually unanimous (97%) on the TV industry’s need for new audience metrics (other than reach and frequency) to report commercial ratings, not just program ratings, to effectively measure TV advertising.
The television industry, however, is aggressively responding to the new, aggressively competitive media alternatives, said ANA president/CEO Bob Liodice.
With technology-based advances in addressability, enhanced television options, Internet convergence [IPTV] and branded entertainment opportunities, television is likely to continue as the dominant part of the marketing mix.”
