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ANA/Forrester Survey: TV Advertising Effectiveness Is On The Upswing

Stocks in this article: FORR

A joint ANA (Association of National Advertisers) and Forrester Research, Inc. (Nasdaq: FORR) survey of more than 100 national advertisers illustrates a renewed belief in the effectiveness of television advertising. Compared to 2010, the number of respondents who believe TV ads have become more effective in the past two years has tripled. In addition, respondents express a growing confidence in set-top box data that has the potential for TV ads to be targeted at specific customer groups. In fact, nearly three-quarters of marketers expressed a strong interest in targeting their advertising to addressable audiences, making use of this new behavioral and demographic data to place television ads.

Seventy-six percent of respondents to the ANA/Forrester study of national advertisers said their media budgets will remain stable this year. TV ad spending will account for 47 percent of media budgets, a 6 percent increase from reported budgets in our 2010 survey. Other findings include:

  • Growing confidence in alternative measurements. While Nielsen data remains the most trusted data source for TV media purchasing decisions, marketers express a growing faith in set-top-box data. Seventy-two percent of respondents believe the quality and accuracy of set-top-box data will improve in the next few years, and 47 percent see unique visitors/watchers as the eventual industry standard for cross-platform audience measurement.
  • Experimentation with advanced ad placements. Nearly half of respondents are testing or planning to test advanced TV ad placements in the next 12 months via platforms such as video on connected TVs. With the growth of second screens, 18 percent of respondents have already implemented synchronized ads, and another 31 percent will try out this strategy in 2012.
  • Prioritization of digital ad spending. Digital remains a top priority for respondents. Seventy percent plan to spend more on web ads this year, followed closely by social media and mobile. In fact, mobile ads top the list of video alternatives to the linear 30-second spot that respondents will likely spend more on in 2012.
  • Improved perception of agency skills relative to TV. Compared to 2010, respondents view their agency partners as better equipped to help navigate the changing TV ad landscape. Sixty-two percent of respondents, a 10 percent increase over 2010, believe their media agency is well-equipped in this arena.

“The TV business is on the precipice of change, and marketers are poised to benefit,” said Forrester Research Vice President and Research Director David M. Cooperstein. “New sources of insight into consumer interests, combined with multitasking TV viewers, have created a new playing field upon which marketers can reach their most relevant audience.”

“This survey confirms that the death of television has been greatly exaggerated,” said Bill Duggan, Group Executive Vice President, ANA. “Our findings shine a spotlight on the bullish attitude that advertisers have towards the medium, including passion for new TV and video platforms.”

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