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TV Ads Less Effective, Budgets Shifting Online

February 10, 2010

More than half of advertisers (62%) say traditional TV advertising is less effective than it used to be, and many plan to shift their attention––and budgets––away from traditional TV to social media, online video ads, and branded advertising, according to a survey from Forrester and the Association of National Advertisers (ANA).

Advertisers plan to spend on average 41% of their media budgets on TV ads in 2010, the same level reported a year ago, but down 17 percentage points from the 58% allocated in 2008.
Below, other findings from the report, TV Advertising Budgets are Under Siege.

The 30-Second Commercial

Overall, advertisers say less clutter and better targeting would improve TV ad effectiveness: 69% of advertisers would like fewer commercials per pod to gain better visibility.

Yet advertisers still have confidence in the 30-second TV ad: only 19% say the 30-second TV spot will be dead in 10 years, up from 28% who said so in 2008, and most don't see shorter ads as a viable option.

Meanwhile, over three-quarters (78%) say they would be interested in the ability to target consumers more precisely, but only 59% would be willing to pay a premium for it.

Advertisers Want More Detailed Measurement

Advertisers want to accurately measure the impact of commercials: 82% say they are interested in ratings for individual commercials, as opposed to entire pods.

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