- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Ad spend sees substantial decline in 2008, to worsen in 2009
- Print and radio bear brunt of spending cuts
- Branded entertainment offers alternative to traditional TV spots
- Television forced by disruptive technology to reinvent itself
- New DVR features suggest a new way to advertise
- Addressable advertising aims to improve targeting and relevance
- Negative attitudes towards advertising unchanged
- Traditional push advertising reminds but doesn' t convert
- Time-shifted viewing and commercial skipping is a widespread reality
- Quantity of ads is major barrier to more positive perception
- Celebrity endorsements and charity sponsorships
- Newspaper inserts most popular but internet coupons closing ground
- Emerging delivery concepts would find significant consumer base
- Market Size and Forecast
- Aggregate ad spend plummets with little sign of recovery
- Figure 1: U.S. advertising expenditures, at current prices, 2004-14
- Figure 2: U.S. advertising expenditures, at inflation-adjusted prices,
2004-14
- Competitive Context
- Disruptive technologies favor pull over push
- Figure 3: U.S. household penetration of digital video recorders and
broadband modems, 2006-09
- Internet not yet established as a tool for push advertising
- DVRs are both friend and foe to marketers
- Networks boost minutes of branded entertainment
- Figure 4: Brand appearances in network TV programming, 2006-08
- Segment Performance
- TV and internet buys show relative strength
- Television buyers wait and see
- Internet valued for conversions not brand building
- Radio and print media bear brunt of cutbacks
- Newspaper struggles despite growth in online readership
- Radio needs innovation to survive
- Magazines prepare for more drastic move online
- Figure 5: U.S. advertising expenditures, by media type, 2007-08
- Market Drivers
- Ad expenditures decline more dramatically than consumer spending
- Figure 6: U.S. media expenditures and consumer spending, 2006-09
- Troubled auto industry accounts for more than a third of decline
- Figure 7: U.S. advertising expenditures, by business sector, 2007-08
- Fewer consumers learning from advertising
- Figure 8: Attitudes toward advertising, May 2004-05-December 2007-08
- Reinvention and innovation needed to reach growth demographics
- Figure 9: U.S. population, by age, 2004-14
- Marketers get comfy with "below the line" campaigns
- Innovation and Innovators
- Network TV integrates marketing into programming
- Addressable advertising makes push more relevant
- Big screen reading devices may give periodicals a second life
- Incentive-based ad model would attract significant base of respondents,
particularly under-35s
- Figure 10: Attitudes towards emerging concepts in media and ads: screens
outside the home, compensation for viewing ads, and interest in television
viewing on cell phones, June 2009
- Figure 11: Attitudes toward emerging concepts in media and ads: screens
outside the home, compensation for viewing ads, and interest in television
viewing on cell phones, by age, June 2009
- Impact of Advertising Media
- Introduction
- Reach and impact vs. cost: The television conundrum
- Television remains the most powerful media, but costs may favor other
formats
- Figure 12: Reach and impact of ads, by media segment, June 2009
- Newspaper and magazines more likely to reach higher earners
- Figure 13: Reach of advertising media, by household income, June 2009
- Ad impact declines significantly after age 35
- Figure 14: Impact of advertising media, by age, June 2009
- Ads educate and remind but less likely to persuade
- Figure 15: Type of effect of each advertising media, June 2009
- Sponsorships more effective with men
- Figure 16: Preference for sponsoring brands, by gender and age, June 2009
- TV Viewing Habits
- Overview
- DVR ownership determined mostly by household income
- Figure 17: DVR ownership, by age and household income, October
2007-December 2008
- Consumers skip commercials and surf internet while watching
- One in five time-shifting all viewing
- Figure 18: Television time-shifting habits, June 2009
- Figure 19: Television multi-tasking and non-DVR based ad avoidance
techniques, June 2009
- Youngest respondents 18-24 most likely targets for online campaign tie-ins
- Figure 20: Television time-shifting habits, by age, June 2009
- Figure 21: Television multi-tasking and non-dvr based ad avoidance
techniques, by age, June 2009
- Higher earners more likely to record
- Figure 22: Television time-shifting habits, by household income, June
2009
- DVRs reduce the power of push but let consumers pull
- Figure 23: Ad avoidance, ad selection, and voluntary ad viewing via
DVRs, June 2009
- Family-aged respondents harder to reach with traditional TV ads
- Figure 24: Ad avoidance, ad selection, and voluntary ad viewing via
DVRs, by age, June 2009
- Large household respondents more open to on-demand ads
- Figure 25: Ad avoidance, ad selection, and voluntary ad viewing via
DVRs, by presence children in the household, June 2009
- Receptivity to TV Advertising
- Reducing quantity and block/filter can increase receptiveness
- Figure 26: Enjoyment of TV ads and interest in new TV ad viewing models,
June 2009
- Active 25-34-year-olds most value ability to choose
- Figure 27: Enjoyment of TV ads and interest in new TV ad viewing models,
by age, June 2009
- Celebrity Endorsements
- Cost remains primary barrier to membership
- Figure 28: Impact of celebrity endorsements, June 2009
- Celebrity impact strongest among under-35s
- Figure 29: Impact of celebrity endorsements, by age, June 2009
- Charitable Causes
- Charity sponsorship justifies premium pricing for a small minority
- Figure 30: Impact of charity sponsorships, June 2009
- Under-35s more likely to pay more for charity sponsors' products
- Figure 31: Impact of charity sponsorships, by age, June 2009
- Higher earners more likely to pay premium for good causes
- Figure 32: Impact of charity sponsorships, by household income, June 2009
- Coupons
- New media coupons still second to newspaper inserts
- Figure 33: Coupon usage, by type of media, June 2009
- Internet/e-mail promotions close the gap with newspaper among under-35s
- Figure 34: Coupon usage, by type of media and age, June 2009
- Higher earners find coupons in more places
- Figure 35: Coupon usage, by type of media and household income, June 2009
- Family demographic more likely to find coupons in new media
- Figure 36: Coupon usage, by type of media and presence of children in
the household, June 2009
- The Impact of Race and Hispanic Origin
- Blacks aged over 45 least likely to tune out
- Figure 37: Television time-shifting habits, by race/Hispanic origin and
age, June 2009
- Black DVR owners least likely to skip commercials
- Figure 38: Ad avoidance, selection, and voluntary viewership via DVR, by
race/Hispanic origin and age, June 2009
- Blacks most likely to enjoy television commercials
- Figure 39: Enjoyment of TV ads and interest in new viewership models, by
race/Hispanic origin and age, June 2009
- Blacks most likely to view celebrity spokesmen favorably
- Figure 40: Impact of celebrity endorsements, by race/Hispanic origin and
age, June 2009
- Asian demographic ideal for online video ads
- Figure 41: Television time-shifting habits, by race/Hispanic origin,
June 2009
- Appendix: Other Useful Consumer Tables
- High-income households skipping away from ads
- Figure 61: Ad avoidance, selection, and voluntary viewership via DVR, by
household income, June 2009
- Households with kids like ads more
- Figure 62: Enjoyment of tv ads and interest in new viewership models, by
presence of children in the household, June 2009
- Appendix: Trade Associations
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