Thursday, March 23, 2006

Commercials Seen as Less Effective


"Nearly four in five marketers surveyed believe that television advertising is less effective than it was just two years ago, according to a study released Wednesday.

That's bad news for a nervous TV industry, which is worried about what the growth in digital video recorder usage and video on demand will mean for the economic underpinnings of the business.

Almost 70 percent of advertisers say they believe that DVRs and video on demand will reduce or destroy the effectiveness of traditional 30-second commercials, the survey found.

"Television networks continue to publish research that traditional TV advertising is potent as ever, but national advertisers aren't buying it and are seeking alternatives to enhance their budgets and move them beyond the customary 30-second spot," said Josh Bernoff, Forrester vice president."



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