30-Second TV Spots Endangered by DVRs and VOD

4/4/2011

Contact: The Center For Media Research

—

A survey, by the Association of National Advertisers (ANA) and Forrester Research, found that 78% of advertisers feel that traditional television advertising has become less effective in the past two years. The survey also found that marketers are exploring emerging technologies to help bolster their television advertising spend.

70% of 133 national advertisers surveyed, representing more than $20 billion worth of advertising, think that DVRs and video-on-demand will reduce or destroy the effectiveness of traditional 30-second commercials.

Josh Bernoff, Vice President, Forrester Research, said “Television networks continue to publish research that traditional TV advertising is (as) potent as ever, but national advertisers aren’t buying it and are seeking alternatives to enhance their budgets and move them beyond the customary 30-second spot.”

Key highlights of the survey include:

• When DVRs spread to 30 million homes, close to 60% of advertisers say that they will spend less on conventional TV advertising; of those, 24% will cut their TV budgets by at least 25%.
• While 55% say that their top executives are closely watching changes in TV advertising, most advertisers have not experimented with advertising on DVRs or video-on-demand.
• Eighty percent of advertisers will spend more of their advertising budget on Web advertising and 68% of advertisers will look to search engine marketing.
• Advertisers will spend more of their advertising budgets on branded entertainment within TV programs (61%), TV program sponsorships (55%), interactive advertising during TV programs (48%), online video ads (45%), and product placement (44%).

Bob Liodice, President and CEO of the ANA. said “As new and traditional media alternatives compete more aggressively for a share of the media pie… television is aggressively responding. With technology-based advances in addressability, enhanced television options, Internet convergence (IPTV) and branded entertainment opportunities, television is likely to continue as the dominant part of the marketing mix.”

For additional information, please visit the ANA here.