Advertisers see TV Medium Losing it's Effectiveness

A new study from Forrester is predicting that 2007 will be the year that the television industry experiences an actual full-year decline in ad revenues. This conclusion was reached by speaking with 133 National advertisers which represent more than $20 billion annually in ad dollars. The results show that 78% said they are less confident in Television as an effective advertising medium than they were two years ago, and nearly 70% believe seismic shifts are in store for traditional modes of advertising like the 30-second ad. Note this - 24% stated that they intend to cut their TV ad budgets by at least a quarter and reallocate that money to online advertising, product placement and other channels once DVR penetration grows above 30 million household. Despite this, only 17% cited ad-skipping and DVR technology as the top threat to TV advertising, while 48% of the advertisers polled named commercial clutter as the leading problem. Link: AdAge.com Mar 22, ’06 - MARKETERS LOSE CONFIDENCE IN TV ADVERTISING also ClickZ Networks 03/22 - ANA Marketers: Our TV Spots are Tanking

DVR Coupon Campaign a Success for KFC

Consumers responded to a recent KFC ad that, when slowed down with the aid of a DVR, gave a code viewers could use to get a coupon for a free sandwich. Although ABC decided not to air the spot, claiming that the ad contained subliminal advertising, KFC reported that the ad was a success. Approximately 103,000 people claimed their "Buffalo Snacker" prize sandwich, and that traffic to the KFC Web site spiked 40% during the run of the promotion. Link: WSJ Mar 20, ’06 – KFC seems to win at game of Chicken

In2TV Goes Live

AOL and Warner Bros. Officially launched In2TV yesterday and it’s billed as the first broadband television network and featuring "classic" television programming. AOL and Warner Bros. announced In2TV last November, and it works like an on-demand television station, delivering full-length television episodes to users home computers via broadband for free, although advertisers will be paying for in-stream advertising as well as banner ads and other accompanying promotions. Four advertisers are on board at launch—Intel Corp., Kia Motors Corp., Kraft Foods Inc., and Hershey Co.—with more expected as the service rolls forward. Link: Designtechnica News Mar 15, ’06 – AOL and Warner Launch In2TV PAST SMM Post: AOL’s Content Deal with Warner Bros. – Nov 16, 2005

Two-thirds of Home Internet Users Connect via Broadband

Broadband penetration grew 13% last year to 95.5 million homes, which means 68% of active home-Internet users now use a broadband connection, according to a study released today by Nielsen/NetRatings.

The report notes that Broadband’s high-speed access has changed the way people use their computers. The average person now spends 30.5 hours per month using their home computer; two years ago the average person spent only 25.5 hours at their PC each month. It is not just the high speed of broadband that has prompted significant changes in computer usage patterns, said Jon Gibs, senior director of media, Nielsen/NetRatings. Because broadband service is “always on,” people using it do not have to make a special effort to log on to use the Web. “The Internet has become an extension of the PC,” Mr. Gibs said. “Broadband enables people to jump on and jump off rather than set aside a block of time to use the Internet.” Link: AdAge.com Mar 15 ’06 – Rise in Broadband Changes Consumers’ Internet Habits