Wednesday, February 8th, 2012
A study by the Reed Elsevier research firm In-Stat/MDR says that the growing attraction of video games as ad vehicles is likely to grow more than most expect. “Television Advertising 2004-2009: The Slow Death of the 30-Second Commercial,” looks at how TV advertising is changing in the face of increased competition from the Internet, video games, and prepackaged content, as well as new technologies such as personal video recorders. The report includes forecasts of new advertising methods such as video game advertising and product placement, as well as TV, cable, Internet, and radio advertising. U.S. electronic advertising market will see an average growth rate of 2.8 percent from 2005 through 2009 in the face of the reduced potency of broadcast advertising. The growth will largely be driven by Internet advertising, and to a lesser extent, cable TV and video game advertising. TV Advertising is dropping in effectiveness due to 2 trends: 1. Cable television (more choices), DVDs, the Internet, and electronic gaming. 2. Ad-skipping technology found in TiVo (personal video recorders). Over two-thirds of those with a PVR skip ads, with 75 percent of those individuals skipping over 50 percent of ads shown.
