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Study: Advertisers Think Traditional TV Spots Losing Power

Mar 24, 2006  •  Post A Comment

Advertisers feel they’re getting less bang for their marketing buck on television than two years ago, according to a study released Wednesday.

The survey, by the Association of National Advertisers and Forrester Research, found that 78 percent of advertisers feel traditional television advertising has become less effective. Advertisers also indicated they are looking to spend more on new video technologies.

Advertisers are particularly concerned about digital video recorders and video-on-demand. Almost 70 percent of those surveyed thought those technologies will reduce or destroy the effectiveness of 30-second commercials. Close to 60 percent of the advertisers said they will spend less on conventional TV advertising once DVRs spread to 30 million homes, with 24 percent saying they will cut their TV budgets by at least 25 percent.

At the same time, 80 percent of advertisers said they expect to spend more of their advertising budget on Internet advertising and 68 percent will look to search engine marketing.

“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,” said Josh Bernoff, VP of Forrester Research, who presented the findings at the ANA Television Advertising Forum in New York.

The survey questioned executives at 133 national advertisers representing more than $20 billion in ad spending. Among the companies participating were Colgate, Johnson & Johnson, Mattel, Pfizer, Verizon, Charles Schwab and Dunkin’ Donuts.