US brands still keen on TV

26 October 2011

NEW YORK: Over three-quarters of major US brand owners have either increased or maintained their TV advertising budgets in the last two years, new figures show.

The Association of National Advertisers, the trade body, polled 135 senior client-side marketers, with respondents boasting an average of 15 years of experience in the discipline.

Overall, 47% of interviewees revealed they had boosted the funding behind TV ads since 2009, while 30% had maintained expenditure levels and 23% trimmed their outgoings.

Some 64% of consumer-facing budgets has raised their investment during the last two years, as had a rather smaller 27% of business-to-business groups.

Equally, 36% of contributors selling to the public agreed TV spots had become increasingly important to their marketing strategy in this period, measured against 13% for those selling to other firms.

The ANA suggested the larger budgets and broader customer base of consumer-facing firms constituted a primary reason why TV may prove, or be perceived as, a "more effective" channel for them.

"There was much chatter in the past about the television medium and 30-second spot being dead, but this survey has shown that TV advertising is very much alive," Bill Duggan, group executive vice President of the ANA, added.

However, while television was still the "top media platform" for the featured companies, 60% of contributors also agreed it was facing increasing competition from other media.

Wider challenges confront TV when it comes to proving effectiveness. Some 57% of the panel stated that "fractured attention" due to surfing the web or texting while watching broadcast content was an issue here.

Similarly, the rising uptake of DVRs, which allow viewers to fast-forward through commercial breaks, was cited by 56% of individuals polled.

The two main opportunities associated with the rise of digital technologies include the ability to secure comparable data from all media and extending video and commercials to the web and mobile.

More specifically, the area of greatest interest among respondents was the opportunity to receive ratings for individual commercials and brands, the study added.

Data sourced from Association of National Advertisers; additional content by Warc staff