Blackfriars' Marketing

Friday, March 24, 2006

Another study confirms TV ads are now less effective

A study released this week by both the Association of National Advertisers and Forrester research notes that four in five marketers believe that TV commercials are less effective than they were just two years ago. Sixty percent of the respondents say that they will spend less on conventional TV advertising in the next three years. The study blames digital video recorder (DVR) usage and video on demand as the primary causes.

This confirms the trend we've been noting for a year now in our research, where we've seen advertising spend drop from 33%% to less than a quarter of marketing budgets. And while DVRs are a component of this trend, our view is that much of this loss of effectiveness is due to the tyranny of too much media clutter. If we combine this with the drop in effectiveness of telemarketing and email marketing over the last few years, it's clear that marketing as a discipline is about to be completely reinvented.

Ads. They just don't work like they used to.

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