TV ads losing steam, marketers say

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NEW YORK -- Traditional television advertising has become less effective in the past two years, according to 62% of marketers, and a majority are trying new ad formats and new video platforms, according to a study by the Association of National Advertisers and Forrester Research.

The complete survey results will be revealed during the ANA's TV & Everything Video Forum on Feb. 28 in New York.

Among the results released today:

> Half of the advertisers surveyed have started to experiment with new ad types to work with digital video recorders and video-on-demand programs.

> 87% of advertisers believe branded entertainment will play a stronger role in TV advertising over the next year.

> 65% of advertisers are "eager" to try ads embedded in VOD, 43% are "eager" to try interactive TV ads, and 32% are "eager" to try ads within the set top box menu.

> More than 50% of advertisers said that when half of all TV households use DVRs, they will cut spending on TV advertising by 12%.

> 87% of respondents said they intend to spend more ad dollars on the Internet this year.

> 72% of advertisers said they are very interested in having individual commercial ratings rather than average commercial ratings.

"As marketers embrace the richness of new advertising avenues outside of the traditional TV format, the TV industry is working to address marketer's issues related to ratings and the changing TV landscape," said Bob Liodice, president and CEO of ANA.
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