With the growing adoption of such devices as digital video recorders (DVRs) and TiVo, traditional TV advertising is becoming a less effective medium, a recent survey found.
Some 78% of advertisers said TV advertising has become less effective over the last two years, according to a study released Wednesday by the Association of National Advertisers and Forrester Research. Nearly 70% of advertisers think that DVRs and video-on-demand will reduce or destroy the effectiveness of traditional 30-second spots, forcing marketers to search out new technologies to help boost their advertising spend, the study said.
“As DVRs look to climb above 30 million households in the next three years, advertisers are finding themselves forced to reconsider their media mix,” said Josh Bernoff, VP-Forrester Research, in a statement. “Television networks continue to publish research that traditional TV advertising is 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.”
Sixty-one percent of those surveyed said they would spend more of their advertising budgets on branded entertainment in TV programs, 55% on TV program sponsorships and 48% on interactive advertising during TV programs. Less than half said they would allocate more ad dollars on online video ads (45%) and product placement (44%).
The study also found that 80% of advertisers said they would spend more of their advertising budget on Internet advertising, while 68% of advertisers said they would look to search engine marketing.
The study surveyed 133 national advertisers about TV advertising attitudes and the impact of new technologies on their advertising budgets. Those surveyed represented more than $20 billion worth of advertising from brands including Colgate, Dunkin’ Donuts, Johnson & Johnson, Mattel, Pfizer, and Verizon.
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