ANA: Social Media, Web Spend Up, TV Down
Still, this was down from the 58% level of two years ago. The survey says this illustrates a continued lack of confidence in the effectiveness of television ads.
The survey looked at 104 U.S. advertisers in 21 industries, representing nearly $14 billion in measured media budgets. It included companies such as Cisco Systems, GlaxoSmithKline, ING, Kraft, Marriott, State Farm and Clorox.
Some 62% percent of companies say TV ads have become less effective in the past two years due to increased advertising clutter. Worse still, virtually all advertisers believe the TV industry needs new audience metrics beyond reach and frequency; 82% of respondents would be interested in ratings for individual commercials.
But one sign that has turned around for TV marketers: The expectant lifespan of the 30-second commercial. Now, 19% say the 30-second spot will be dead in 10 years. This is down from 28% a year ago.
The future of addressable advertising is showing some mixed signals. While 78% are interested in targeting consumers more precisely, only 59% would be willing to pay a premium for it.
Future branded entertainment deals will grow, according to 80% of advertisers. And in 2010, 38% say they will spend more on branded entertainment as an alternative to the 30-second commercial.
Social media, Web advertising and search are stealing budgets from TV and other media. Of those surveyed, 77% said they would be moving TV dollars to social media this year; 73% plan to shift money to online advertising, and 59% will be spending more on search-engine marketing and 46% on e-mail marketing.
Other non-TV traditional media doesn't seem to be part of this trend. Only 15% said they plan to increase spending in traditional media such as radio, outdoor, magazines or newspapers.
"CMOs need to prepare for television's digital future by forcing change upon the TV advertising ecosystem," said David Cooperstein, vice president and research director of Forrester Research.
"We recommend that advertisers get ready for the future of television by preparing to deliver targeted commercials, delivering true branded entertainment experiences and embracing the connected TV."
The survey findings will be presented at the ANA's "TV and Everything Video Forum" on Feb. 11 in New York.