Interactive Ads Popular but Too Costly Says UK Industry

09 August 2005

A new report from Flextech's advertising sales arm IDS reveals that almost a third of British ad agencies and brand owners consider interactive TV advertising to be too costly, although the majority of those quizzed viewed the medium in a positive light.

The survey, entitled Interactive TV - A Maturing Medium, asked advertisers, agencies, broadcasters and other media industry professionals their opinion of iTV ad campaigns.

Comparing the results with those of last year, IDS claims that more advertisers are using iTV (69%, up from 62%), a majority (57%) averring a positive experience with the medium, while more vowed to definitely use it again (75% versus 61%).

Dedicated Advertiser Locations (DALs) emerge as the industry's favourite iTV ad format, with 29% of respondents believing that this style of advertising works best for them. IDS attributes this to recognition of the branding power of DALs over impulse response ads.

The survey also reveals that nearly a third of respondents (29%) consider cost to be the main drawback of iTV. Nearly one in five (19%) complain that insufficient education about iTV in the marketplace limits the success of interactive ad campaigns, while a complicated campaign development process is criticised by 16% (mainly advertisers).

Other findings indicate:

  • A positive outlook for the future of iTV, with 64% believing it will become mainstream once technology improves.

  • A demand for creative agencies to become more involved with the medium.

  • A desire for increased competition to BSkyB as the main operator of iTV.
To view the 2005 iTV survey, click here.

Data sourced from:; additional content by WARC staff