US ad execs expect slow ad economy recovery and a major shift in TV advertising
The American Advertising Federation (AAF) is the latest group to portend the end of TV advertising as we know it. The second annual AAF Survey of Industry Leaders on Advertising Trends reports that more than three-quarters of advertising leaders believe that DCRs will cause a major shift in the landscape of TV advertising.
The American Advertising Federation (AAF) is the latest group to portend the end of TV advertising as we know it. The second annual AAF Survey of Industry Leaders on Advertising Trends reports that more than three-quarters of advertising leaders believe that DCRs will cause a major shift in the landscape of TV advertising. Of those, 55% see this shift as continued growth in non-traditional TV ad formats while 21% think DVRs mean the death of 30-second spots. Only 4% think the impact of DVRs is being over-hyped.
That said, the survey respondents view product placement as the only proven alternative tactic to traditional spots so far. In addition, the survey found there is still a lack of confidence in the advertising economy amongst U.S. ad execs, with most expecting a slow recovery rate. They were also pessimistic about long-term prospects and appeal of careers in advertising.
The most pressing issues for the executives were breaking through ad clutter, changing consumer behaviour and demonstrating ROI. The respondents also placed importance on attracting and retaining multicultural talent. This is a shift from previous concerns about media proliferation and industry consolidation.
The study also found increasing respect for online advertising, with the majority of respondents incorporating the Internet into the media mix. Online now represents about 8% of media expenditure, up three points from three years ago, and is projected to rise to 17% over the next three years. There is now more understanding about the benefits of online as a complement to traditional efforts and its ability for precision targeting.
The respondents ranked the top three most successful campaigns of 2003-2004 as Apple iPod, Mini Cooper and Citibank Identity Theft. Their choices for top three brands that achieved greatest success through advertising were Nike, Coca-Cola and McDonald’s.
The study, conducted by the Atlantic Media Company, involved 121 industry leaders across all sectors of the industry, 70% having at least 15 years of experience in advertising. The AAF is based in Washington, D.C. and has a network of 200 ad clubs across the U.S. Its 130 corporate members consist of advertiser, agency and media companies.