Marketers: TV Advertising Less Effective Than Two Years Ago

February 20, 2008

This article is included in these additional categories:

Agency Business | Media & Entertainment | Television | Trade Shows & Events

Most marketers say television advertising has become less effective in the past two years, but many are interested in exploring new ad formats and forms of video commercials, according to the Association of National Advertisers and Forrester Research.

Among the major findings of the fourth biennial TV & Technology study:

  • 62% of marketers say TV advertising has become less effective in the past two years.
  • 87% of respondents say they intend to spend more on web advertising this year.
  • Close to half of the advertisers surveyed have already started to experiment with new ad types to work with DVRs and VOD programs.
  • 87% of advertisers say branded entertainment will play a stronger role in TV advertising in the coming year.
  • Advertisers are eager to try new ad formats, including ads in online TV shows (65%), ads embedded in VOD (55%), interactive television ads (43%), and ads within the set top box menu (32%).
  • Over 50% of marketers report that when half of all TV households use DVRs, they will cut spending on TV advertising by 12%.
  • 72% of marketers are very interested in having individual commercial ratings rather than average commercial ratings.

“As marketers embrace the richness of new advertising avenues outside of the traditional TV format, the TV industry is working to address marketers’ issues related to ratings and the changing TV landscape,” said Bob Liodice, President and CEO of the ANA.

“Marketers, in collaboration with the TV industry, will continue to find the most effective and innovative ways to reach their customers through the TV medium, utilizing the emerging technologies available to them.”

Additional insights from the study :

  • Two-thirds of respondents indicate that C-level executives are watching the changes in TV advertising more closely, up from 54% two years ago.
  • Media agencies have vastly improved their ability to help their clients deal with the changes: Only 28% of respondents reported that their media agency is ill-equipped to address the changes in TV advertising, compared with 47% two years ago.
  • Creative agencies did not fare as well, with 47% of marketers indicating that their creative agency was still ill-equipped to help deal with changes, a slight improvement from 55% saying so two years ago.

The full survey findings will be unveiled at the ANA’s TV & Everything Video Forum on February 28, at the New York Marriott Marquis, Times Square.

About the study: The TV & Technology study was conducted in January 2008 and is based on a survey of 78 leading advertisers, across all major industries and categories. The goal of the study was to measure the attitudes of national advertisers toward television and the impact of technology.

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