TV Advertising Hit By Digital Competition

TV advertising isn't as potent as it once was--especially in the last two years.

A recent survey by the Association of National Advertisers and Forrester Research says 62% of marketers believe TV is less effective since 2006. Not surprisingly, many TV marketers are interested in exploring new digital platforms for video commercials.

What will they do about it? The ANA survey says if technologies like DVRs grow to over 50% of U.S. TV households, marketers will cut back TV budgets by 12%. These companies are already experimenting with marketing efforts around DVRs and in VOD programming.

High on the list of alternatives for marketers is trying out advertising on online TV shows (65% of marketers named that area of interest). After that, some 55% are looking into VOD, 43% want to consider interactive TV ads, and 32% would try placing ad messages on set-top box menus.

A dominant number of TV marketers--87%--believe branded entertainment will get greater play by TV advertisers in 2008.

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Overall, 87% of marketers say they intend to spend more on Web advertising this year. Almost as many--72%--are interested in taking TV audience metrics to the next level, wanting individual commercial ratings rather than average commercial ratings.

Can marketers' agencies handle the change? The survey noted media agencies are better equipped than creative agencies. 28%of those survey reported that their media agency is ill-equipped. This compares 47% for creative agencies.

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