New ANA Study Calls Into Questions The Cost Effectiveness of TV

According to a new study by the Association of National Advertisers (ANA) and Forrester Research, almost two-thirds of marketers (62 percent) feel television has diminished in effectiveness over the last two years. They point to increasing DVR use and the growing utilization of the Web as distractions that are taking some of the luster out of television advertising. This information comes on the heels of another new IDC study that indicates people with an Internet connection are now spending twice as much time with the Internet as they do with TV. In addition, the IDC study points out Web use outpaces magazine/newspaper use by 8 to 1.

Other major findings of the ANA/Forrester study include:

• 87 percent of advertisers plan to increase Web advertising in 2008.
• 65 percent are eager to try new video alternatives including online commercial options.
• 47 percent of respondents indicated their traditional creative agencies were poorly equipped to address changes in the marketing landscape.

From the ANA news release: “The TV & Technology study was conducted in January 2008 and is based on a survey of 78 leading advertisers across all major industries and categories. The goal of the study was to measure the attitudes of national advertisers towards television and the impact of technology on the television landscape.”