In a recent report released by the Association of National Advertisers and Forrester Research, research shows that “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.”
Some of the highlights of the report included:
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More than 50% of advertisers said that when half of all TV households use DVRs, they will cut spending on TV advertising by 12%.
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87% of respondents said they intend to spend more ad dollars on the Internet this year.
According to a report released by the Future Exploration Network, Future of Media 2007, advertisers will:
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Annual growth in advertising at over 5% in real terms significantly exceeds GDP growth.
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Television, newspapers, and magazines still dominate global advertising spending. However advertising patterns are rapidly shifting as non-targeted media such as broadcast TV and newspapers lose market share and pricing power, and new media channels increase their share.
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One of the dominant aspects of change in the media industry over the last decades – and today – is fragmentation of media channels. Television provides an excellent example, where despite an almost doubling of time spent watching TV since 1950, the proliferation of channels has resulted in rapidly decreasing time spent viewing per channel.
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The fastest growing and largest segments of digital advertising over the next few years are forecast to be paid search, mobile, and video.
This market trend provides significant market opportunities for organizations seeking new revenue streams from location based advertising. Location specific content is highly relevant, with audio and video messages targeted at a captive audience. The value proposition for advertisers is a new media channel that offers more value than traditional broadcast media [such as radio and television].
With the rapidly changing media landscape, Bob Liodice, President and CEO of Association of National Advertisers said “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.”
