Tuesday, April 27, 2004

TV advertising in long term decline

In the US, the majority of national advertisers plan to cut spending on TV commercials by 20 percent in the next five years, when they believe that ad-skipping devices like TiVo will take hold in households. The Web is at the top of many advertisers' lists for a replacement medium, according to a survey from Forrester Research.

The premise of the report is that digital video recorders (DVRs) like TiVo that let TV viewers record programming and skip over commercials easily, will be in 30 million homes within the next five years, up from an estimated 3 million today

There is a new form of TV advertising on the horizon. Known as Video-to-Video, the idea is to let viewers click a button on their remote control to immediately watch a 3-minute video describing products and services that might appeal to them. The marketing clips are promoted through small icons that appear on the TV screen as viewers fast-forward past regular ads.

Reading about these developments made me think that the youth-centric nature of TV advertising may be coming to an end as the viewer takes control of what adverts they see.

All of these fables about “it doesn’t matter that we don’t appeal to the 50+ since they view the TV in any case” may be exposed for the rubbish they are.

No comments: