A joint ANA (Association of National Advertisers) and Forrester Research, Inc. (Nasdaq: FORR) survey of more than 100 national advertisers illustrates a renewed belief in the effectiveness of television advertising. Compared with 2010, the number of respondents who believe TV ads have become more effective in the past two years has tripled. In addition, respondents express a growing confidence in set-top-box data that has the potential for TV ads to be targeted at specific customer groups. In fact, nearly three-quarters of marketers expressed a strong interest in targeting their advertising to addressable audiences, making use of this new behavioral and demographic data to place television ads.
Seventy-six percent of respondents to the ANA/Forrester study of national advertisers said their media budgets will remain stable this year. TV ad spending will account for 47 percent of media budgets, a 6 percent increase from reported budgets in our 2010 survey. Other findings include:
- Growing confidence in alternative measurements. While Nielsen data remains the most trusted data source for TV media purchasing decisions, marketers express a growing faith in set-top-box data. Seventy-two percent of respondents believe the quality and accuracy of set-top-box data will improve in the next few years, and 47 percent see unique visitors/watchers as the eventual industry standard for cross-platform audience measurement.
- Experimentation with advanced ad placements. Nearly half of respondents are testing or planning to test advanced TV ad placements in the next 12 months via platforms such as video on connected TVs. With the growth of second screens, 18 percent of respondents have already implemented synchronized ads, and another 31 percent will try out this strategy in 2012.
- Prioritization of digital ad spending. Digital remains a top priority for respondents. Seventy percent plan to spend more on web ads this year, followed closely by social media and mobile. In fact, mobile ads top the list of video alternatives to the linear 30-second spot that respondents will likely spend more on in 2012.
- Improved perception of agency skills relative to TV. Compared with 2010, respondents view their agency partners as better equipped to help navigate the changing TV ad landscape. Sixty-two percent of respondents, a 10 percent increase over 2010, believe their media agency is well-equipped in this arena.
“The TV business is on the precipice of change, and marketers are poised to benefit,” said Forrester Research Vice President and Practice Leader David M. Cooperstein. “New sources of insight into consumer interests, combined with multitasking TV viewers, have created a new playing field upon which marketers can reach their most relevant audience.”
“This survey confirms that the death of television has been greatly exaggerated,” said Bill Duggan, Group Executive Vice President, ANA. “Our findings shine a spotlight on the bullish attitude that advertisers have toward the medium, including passion for new TV and video platforms.”
The survey results will be presented at ANA’s TV & Everything Video Forum in New York on February 16, 2012. Respondents to the ANA/Forrester survey include 124 advertisers across 16 major industries. The survey was conducted during December 2011 and January 2012.
Full survey results will be available to ANA members and select Forrester clients in an upcoming Forrester report entitled “TV Effectiveness Is On The Upswing.”
About the ANA
Founded in 1910, the ANA (Association of National Advertisers) leads the marketing community by providing its members with insights, collaboration, and advocacy. ANA’s membership includes 400 companies with 10,000 brands that collectively spend over $250 billion in marketing communications and advertising. The ANA strives to communicate marketing best practices, lead industry initiatives, influence industry practices, manage industry affairs, and advance, promote, and protect all advertisers and marketers. For more information, visit http://www.ana.net/, follow us on Twitter, join us on Facebook, or visit our YouTube channel.