TV Advertising Budgets Are Under Siege

February 8th, 2010

David Cooperstein

With contributors:

James McQuivey, PhD , Kim Le Quoc , Jean-Yves Lugo

Summary

Forrester and the Association of National Advertisers (ANA) surveyed 104 US advertisers representing nearly $14 billion in measured media budgets. More than half of them — 62% — told us that TV advertising is less effective than it used to be. That's in line with what they told us in 2008. Advertisers want more accurate measurement and the option for more targeted and clutter-free ad inventory. Meanwhile, US marketers are willing to explore alternatives to the 30-second TV commercial as they shift budget from TV to social media, banners, and search. More forward-looking marketers are ready to experiment with online video ads, branded entertainment, and interactive TV. We recommend that advertisers get ready for the future of television, by preparing to deliver targeted commercials, delivering true branded entertainment experiences, and embracing the connected TV.

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