The marketplace for television advertising is undergoing fundamental changes, with new technologies giving consumers the power to choose how, when and where they access the medium.
The rapid adoption of personal video recorders (PVRs) allows users to fast-forward adverts, resulting in research firm, Accenture, forecasting that 9% of all commercials will be skipped by viewers by 2009.
However, despite this significant change, Accenture claims that the shift in consumer viewing habits will not be fatal for the advertising industry, with advertisers producing more targeted and interactive adverts to keep up.
In addition, there is a growing perception that viewers who skip adverts actually reduce the amount of clutter around those they watch, resulting in a clearer more targeted advertising campaign.
Adverts at the start and end of a commercial break, together with program sponsorship messages are therefore more valuable as they are separated from the noise created by other ad messages.
Advertisers are exploring tactical and strategic responses to overcome the problem of skipping ad breaks.
Tactical responses are designed to make the physical act of skipping adverts more difficult, including staggering program start times and shifting air dates.
Accenture asserts that with each approach, interactivity will be the key to success, with interactive TV (iTV) advertising expected to be used more and more by advertisers.
iTV, is expected to enjoy substantial growth over the coming years, with projections seeing the technology reach 69 million subscribers in the US by 2009. In the UK, the iTV market looks set to rise to £2 billion by 2008, up from £577 million in 2004 (see Emerging Technologies In The TV Marketplace).
According to Accenture, there are three factors that will determine whether or not iTV advertising will work, the product, the type of show the advert is placed in and the purpose of the ad.
Contrary to some premature reports, the “30-second slot” is not dead, the way that advertisers fill it is the only thing that will change.
Advertisers will not only use interactivity, they will also take advantage of the internet, following audiences as they migrate towards broadband, for search or entertainment.
TV advertising will be closely targeted towards the viewer, possibly via the search engine in which she or he finds content. In order to keep up with the changing face of the television market, advertisers must develop new strategies and solutions for the interactive world.
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