Home >> International >> Article

International: Personal Video Recorders to generate $7 bn in US, TV ad spend to decline by '07

09-December-2002
Font Size   16
International: Personal Video Recorders to generate $7 bn in US, TV ad spend to decline by '07

Three of four companies that advertise on national TV said they will reduce their spending over the next five years, two-thirds said they will increase spending on program sponsorships, and 46% indicated that their budget on product placement will increase, all as a result of the increasing influence of personal video recorders (PVRs).

"As PVR's penetration nears 2 million households, advertiser concern is mounting," said Josh Bernoff, principal analyst at Forrester Research, Cambridge, Mass., which has just released a report, "Will Ad-Skipping Kill Television?" "Advertisers say they will cut TV spending across the board, on national, local, and cable advertising, in the next five years as PVRs reach 30 million households."

The report, compiled in conjunction with the Association of National Advertisers (ANA), New York, also said that 68% of those surveyed agreed with the statement that,"My ad agency is ill-equipped to help me with the ad-skipping problem."

The impact on advertising will result in a $7 billion decline by 2007. "But ad-skipping won't destroy the TV business," said Bernoff. "New ad revenues for commercials in video on-demand will nearly make up the shortfall, and we also expect consumers to pay $6 billion for new services like subscription video on-demand in 2007."

According to the report, networks can fight ad-skipping by tying ads closer to programs, and "advertisers must transform their commercials to lure in the ad-skipper," said Bernoff. The report also recommends that advertisers concentrate ad buys with fewer networks to get first shot at sparse product placement and sponsorship spots, and that they set aside 5% of their media budget for non-standard formats like interactive program guide panels, interactive commercials, and ads on PVR menus-none of which are susceptible to ad-skipping, per Forrester/ANA.

The Forrester/ANA report garnered responses from 112 marketers in more than a dozen different vertical industries. Most of those surveyed had the title director of advertising or vp-advertising.

Tags e4m

Kartikeya Sharma says that June has been the best month for sales in the 11 years that the brand has been in India

The newly appointed CEO of ZEE5 on how he aims to have the widest appeal in the OTT space amongst Indian consumers

The VP, Marketing and Communications (South Asia), talks about the company's growth strategy, its focus areas, impact of demonetisation on consumer behaviour and much more

Siju Prabhakaran, South Cluster Head, Zee Entertainment Enterprises Limited, talks about channel's rebranding, extending fiction shows to weekends and much more

right
left
RADIO CITY CELEBRATES ITS 17TH ANNIVERSARY WITH CONCERT, AWARDS AND FUN 5TH EDITION OF TIMES NOW & ICICI BANK’S NRI OF THE YEAR AWARDS GLOBAL INDIANS PITCH CMO SUMMIT BENGALURU SEES TOP INDUSTRY LEADERS AND MARKETERS IN ATTENDANCE DISTINGUISHED JURY COMES TOGETHER TO PICK WINNERS FOR PITCH’S TOP 50 BRANDS PITCH CMO SUMMIT BANGALORE SEES TOP CMOS ACROSS INDUSTRIES IN ATTENDANCE 1ST REPUBLIC TV GULF INDIAN LEADERSHIP SUMMIT & AWARDS HONOUR STALWARTS OF INDIAN GULF BUSINESS COMMUNITY SONY YAY! CELEBRATES ITS FIRST BIRTHDAY WITH PARTY FOR TRADE PARTNERS THOUGHT LEADERS AND TOP DIGITAL MARKETERS SPEAK @ EXCHANGE4MEDIA GROUP’S TECHMANCH 2018 IN MUMBAI EXCHANGE4MEDIA’S IDMA 2018 RECOGNIZES INDUSTRY’S BEST DIGITAL MARKETING CAMPAIGNS REALTY PLUS UNVEILS COFFEE TABLE BOOK AT 10TH CONCLAVE & EXCELLENCE AWARDS @AHMEDABAD EMINENT JURY CONGREGATES TO PICK WINNERS OF INDIAN DIGITAL MARKETING AWARDS 2018 OFF THE CUFF SEES ‘SWACHH BHARAT ABHIYAN’ MAN PARAMESWARAN IYER IN CONVERSATION WITH SHEKHAR GUPTA EXCHANGE4MEDIA’S LOUDEST.IN HOSTS INAUGURAL EDITION OF MUSIC INC. IN MUMBAI EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS PORTER PRIZE & INSTITUTE FOR COMPETITIVENESS RECOGNIZE STRATEGIC ACUMEN IN COMPANIES DELHI AD CLUB-SAARC AWARDS 2018 RECOGNIZE EXCELLENCE ACROSS CREATIVE, MEDIA & DIGITAL AGENCIES BSNL & CALL2ACTION COMMUNICATION INDIA LAUNCH MOBILE ADVERTISING PLATFORM, INFOMO IN NEW DELHI CHILDREN’S RIGHTS ACTIVIST KAILASH SATYARTHI LAUNCHES BOOK ‘EVERY CHILD MATTERS’ SENIOR JOURNALIST VIJAY TRIVEDI LAUNCHES BOOK ‘YADA YADA HI YOGI’ BASED ON YOGI ADITYANATH EMINENT JURY CONGREGATES TO PICK IMPACT’S 40UNDERFORTY ACHIEVERS

In the same week, in BARC's Top 10 Advertisers FMCG brand Hindustan Lever continued to reign the category

Hero Motocorp remained the leading advertiser followed by AMFI, Honda Motorcycle & Scooter India.

Ali Hussein talks about the platform's consumer engagement strategy, relationships with telco-partners and what made the 40-year-old film company want to march in the OTT space