Targeted and interactive TV advertising will lay the foundation for the long-term recovery of U.S. ad spending, while spending on broadcast network TV will return to pre-recession levels in 2010, leading the more immediate recovery, according to “Advertising Outlook: Shifting Dollars.”
This new report from international research firm Parks Associates features a survey of U.S. advertising and media executives and found this group optimistic about 2010 ad spending as well as the long-term impact of advanced advertising formats. A majority would pay a premium for addressable TV ads, with almost 40% willing to pay upwards of 20% more over traditional TV ads.
“As digital media consumption increases, advertisers are incorporating emerging advertising platforms into their overall media mix, with particular emphasis on interactivity and personalization to capture consumer attention,” said Heather Way, research analyst, Parks Associates. “This new focus in advertising opens new revenue opportunities for content and service providers, who can build partnerships with agency decision makers to create truly innovative advertising delivery solutions.”
Addressable TV ads, defined as TV commercials delivered via set-top box to viewers targeted by demographic information, viewing interests, or geography, represent a small portion of current ad budgets but will command higher premiums as more digital TV service operators add addressability within their offerings.
“Advertising Outlook: Shifting Dollars” also found over three-fourths of media decision makers expect a budget increase for social networking advertising in 2010. Spending on all major mobile advertising formats will likewise increase, with branded microsites, mobile video, and text messaging expected to reap the largest year-over-year percentage gains.
About Parks Associates
Parks Associates (www.parksassociates.com) is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS™ Conference series.
