Thursday, March 23, 2006

Less Confidence in TV Advertising

More than three out of four advertisers -- 78% to be exact -- said they have less confidence today in the effectiveness of TV advertising than they did two years ago, according to a survey released at today’s Association of National Advertisers TV Ad Forum. Click for AdAge/MediaWorks Article. But, there has been little real change. Advertisers via an instant electronic polling system were asked what they believed would be the most promising video advertising vehicle of the future, 22% thought it was regular TV, making it the second most popular choice. Interactive TV was the leader, with 31%, and in third place with 21% was Internet video. Cable VOD was fourth with 16%.

There is still great concern about the impact of video-on-demand and digital-video-recorders on the effectiveness of their advertising, yet the thinking and lack of movement to other platforms indicates that options with more accountability, higher response rates and higher relevance are still not viable. I'm surprised that VOD over cable still hasn't gotten the attention. It's really starting to rev-up and the addressability possibilities should be intriguing for advertisers. I suspect the big money is playing a "wait and see" game. As the CMO for Kia Motors said, “Prove to us they really are watching them and we’ll pay for it,”.

Let me know your perception of the mindset out there.

-Andy

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