• by Jack Loechner , Staff Writer @mp_research, November 19, 2004

Non-Traditional Formats and DVR to Shift TV Advertising Paradigm

A new study conducted for the American Advertising Federation (AAF) reveals that More than three-quarters of advertising leaders now believe that digital video recorders (DVR), which allow viewers to skip ads, will have a significant effect on the landscape of TV advertising, with continued growth of non-traditional ad formats.

Breaking through clutter, changing consumer behavior and demonstrating return on investment now outrank media proliferation and industry consolidation concerns. The study continues to show a lack of outright confidence in the advertising economy, with many citing a slow recovery rate.

Additional findings include:

• There is rising respect for online advertising, with the majority of respondents incorporating the Internet into the general media mix. This shift shows that online advertising is now considered a traditional marketing medium.
• A majority of respondents viewed most non-traditional advertising tactics as only somewhat effective or entirely ineffective, with the exception of product placement.
• Respondents conveyed a strong bearish sentiment on the advertising industry's ability to attract and retain talent and pessimism about the long-term prospects and overall appeal of careers in advertising.
• Respondents ranked the top three most successful campaigns of 2003-2004 as Apple iPod, Mini Cooper and Citibank Identity Theft.
• Respondents ranked the top three brands that achieved greatest success through advertising as Nike, Coca-Cola and McDonald's.

Expected Impact of DVR Technology on the 30-second TV Ad according to US Ad Professionals (% of respondents)

	2003	2004
30-second spot will remain cornerstone of TV advertising, with growth in non-traditional formats	45%	55%
Death of 30-second spot and new TV paradigm	13	21
Limited prospects for technology critical mass, and therefore, limited impact (of DVR)	22	8
No significant long-term impact. TIVO and DVR overhyped	13	4

Source: American Advertising Federation, November 2004

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