Advertisers See A TV+Web Future

April 4th, 2008

James McQuivey, PhD VP, Research Director

With contributors:

Peter Kim , Michelle de Lussanet , Dan Wilkos , Lauriane Camus

Summary

Forrester and the Association of National Advertisers (ANA) surveyed 78 US advertisers representing nearly $15 billion in advertising budgets. More than half of them — 62% — told us that TV advertising is less effective than it was two years ago, which sounds dire but is better than the 78% who said the same thing when we surveyed ANA members in 2004. This improvement reflects general acceptance that the TV model, though ailing, can be improved. Advertisers see measurement and agency effectiveness as needing an upgrade, but they are also very willing to take some responsibility for fixing things. They are experimenting with DVR- and VOD-friendly advertising forms as well as aggressively turning to Web video as a way to keep TV advertising relevant. We recommend that advertisers use Internet video not only as a supplement to TV but as the ideal platform for preparing for the interactive TV advertising opportunities on the horizon.

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