Marketers Lose Confidence in TV Ads

“Prove to us they really are watching them and we’ll pay for it." - Kia Motors Chief Marketing Officer Ian Beavis

An article today in AdAge says that 78% of advertisers have less confidence in television advertising today than they did two years ago. The study was released today at the Association of National Advertisers TV Ad Forum and had asked 133 national advertisers their attitudes about the current state of TV advertising and potential threat posed by DVRs. The top alternative to TV advertising for these advertisers is branded entertainment within TV programs, with 61% of respondents saying it was their top choice, and product placement was fifth, with 44%.

With the advent of video on demand and digital video recorders, consumers are able to skip commercials. TV ratings are unable to report on commercial viewership or comprehension, and Nielsen's indifference is pushing advertisers away. However, these advertisers are apparently reluctant to break away from TV as their prime media choice (the other top alternatives were TV program sponsorships (55%), interactive advertising during TV programs (48%), and online video ads (45%)). Instead of thinking outside the box (literally), advertisers are stuck in a television rut.

Kia Motors Chief Marketing Officer Ian Beavis urged advertisers to not just talk the talk, but walk the walk. “Don’t get up and bitch and moan and then do the same thing you’ve always done,” he said. “Do the right thing to do for that brand at that particular time.” Until advertisers can look beyond TV as their favorite media choice, product placement will be a prime choice for those who are giving up on the 30-second ad.