TV advertising hit by digital competition
By Erina Lin, Thursday 21 February 2008 at 22:10 :: Advertising :: #1299 :: rss
In the last two years, TV advertising has lost ground due to the digital competition, according to a recent study by the Association of National Advertisers and Forrester Research.
According to the study, 62 percent of marketers believe television is less effective than in 2006. This echoed the fact many TV marketers are interested in experimenting with new digital platforms for video commercials.
Moreover, the survey found if technologies like DVRs keep growing to more than half of U.S. households with televisions, marketers will then cut TV budgets by 12 percent. These companies are already experimenting with marketing efforts around DVRs and in VOD programming, Media Post reported.
Topping the list of alternative advertising venues is online TV shows (65 percent named that area of interest). Following online television shows are: 55 percent are interested in VOD, 43 percent take interactive TV ads into consideration and 32 percent are willing to place ad messages on set-top box menus.
According to an article on Media Post, 87 percent of marketers say they would like to allocate more money on online advertising this year, while 72 percent are interested in taking TV audience metrics to the next level – they want individual commercial ratings, instead of merely average commercial ratings.
The survey also asked the marketers if their agencies can handle the change, and found media agencies are better equipped than creative agencies – 28 percent reported that their media agency is ill-equipped, while 47 percent reported for their creative agencies.
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