New research shows that despite all the buzz and hoopla about emerging media, digital communications and the decline of the 30-second TV spot, advertisers in leading product categories have actually
increased their worldwide spending on TV advertising over the past five years. The categories identified in the survey by media agency ZenithOptimedia include three of the top five global
spenders--retailers, financial services, and telecom operators. All three spent proportionately more of their ad budgets on TV in 2005 than in 2001. On the two remaining sectors--autos and
medicine--only the latter cut the share of its budgets invested in TV during the period. Zenith predicted that in 2006, global TV advertising spending will rise by 5.5 percent at current prices and
total advertising by an anticipated 6.1 percent. Zenith said that despite concern over the fragmentation of mass-TV audiences and ad-skipping technology, advertisers had "demonstrated their continued
confidence in the power of television advertising." Observers speculate that one reason for the increase was that large brands were taking advantage of the weakening position of mainstream
broadcasters to extract better airtime deals. Also, advertisers were prepared to spend on multichannel television, which is growing in most markets--and to combine TV with Internet marketing.
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