Posted by: David Kiley on March 22, 2006
A new survey done by the Association of National Advertisers (ANA) and Forrester Research, Inc. found that 78% of marketers feel that traditional TV advertising has become less effective in the past two years.
The joint survey asked 133 national advertisers about their attitudes towards TV advertising and what impact new technologies, such as digital video recorders (DVRs) and video-on-demand, will have on their TV ad spending.Those surveyed include Charles Schwab, Colgate, Dunkin’ Donuts, Johnson & Johnson, Mattel, Pfizer, and Verizon.
“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, Vice President, Forrester Research, who presented the findings today at the ANA Television Advertising Forum in New York. “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.”
Key highlights of the survey:
- Almost 70% of advertisers think DVRs and video-on-demand will reduce or destroy the effectiveness of traditional 30-second commercials.
- 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 (49%) 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.
It’s surveys like this that make me think of all the conversations I have had in the last year with advertisiers who have reflected these feelings, and all the time I have spent watching crap that was sent to me or broadcasted to me under the guise of advertising.
For all the emphasis on measuring ROI for TV ads, let’s not forget that you can only measure what you produce. In other words, great advertising tends to deliver good ROI, and crappy advertising delivers poor ROI.
What I worry about is that advertisiers will leave TV for the Net and other mediums not because people are watching far less TV, but because they can’t crack the code on creating clever, compelling and relevant TV ads.