DVRs to Take Toll on TV Ads

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The vast majority of ad executives surveyed by the American Advertising Federation said digital-video recorders will have a significant effect on TV advertising.

A majority (55%) say that the 30-second spot will still be the currency of TV advertising, but with significant growth of nontraditional forms, the most effective so far being product placement. Another 21% see even more significant change, predicting the death of the 30-second spot at the hands of DVR owners, who are able to skip over commercials.

For the second year, AAF polled top industry leaders--121 this time, most with at least 15 years in the business.

Online advertising is now considered a necessary complement to other advertising media, they said, with 8% of the advertising dollar going online, up from 5% last year, and predicted to be 17% within three years

A majority of the executives said that targeting minority populations is either extremely or very important, with Hispanics rating as the most important of those.
According to the executives, the top three ad campaigns of 2003-2004 : Apple iPod, the Mini Cooper automobile, and Citibank Identity Theft.

Complete results are available at http://www.aaf.org/news/pdf/adtrends04.pdf.

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