BCA

Business Counsel Associates
Subscribe

TV Ads Still Play a Unique Role in U.S.

June 02, 2010 By: azjogger Category: Market Research, Marketing

Television advertising continues to resonate with US consumers in a number of unique ways, according to a new report.

The Television Bureau of Advertising, the industry body, and Knowledge Networks, the research firm, surveyed 1,562 people in the country in order to gain an insight into their habits and views with regard to media.

Overall, TV was estimated to boast a daily reach of 89.5% among Americans over the age of 18 years old, the study revealed.

This figure stood at 67.5% for the internet, 60.6% for radio, 38.6% for newspapers, 28.6% for magazines and 14.3% for mobile.

Typical viewer spends 319 minutes a day watching TV

In terms of usage levels, the typical participant spent 319 minutes a day watching TV and 159 minutes surfing the web, with the other channels assessed coming in at least an hour behind on this measure.

Turning to advertising, 60.8% of respondents agreed TV spots were the most “authoritative” form of corporate communications.

This compared with 15.4% who said the same for newspaper ads, while 10.8% afforded magazine ads such a status.

Radio registered a score of 8.6%, while perceptions fell to just 4.4% for the internet, indicating the overall dominance of traditional media in this area.

TV rated most exciting

Television spots were argued to be the most “exciting” by 83.4% of contributors, with magazines in second place on a considerably more modest 6%, and the web in third on 4.5%.

Elsewhere, 85.7% of the panel said TV commercials had the greatest degree of influence, while 78.1% asserted that spots shown on this medium also had more persuasive power than other forms of advertising.

When learning about new products, 71.1% of the sample again handed TV the primary role, with newspapers on 8.9%, magazines on 7.3%, and online on 7.8%.

“By every measure, television reaches more consumers every day than newspapers, magazines, radio, the internet and mobile media,” Susan Cuccinello, the TVB’s svp of research, said.

From World Advertising Research Council

GM moves away from TV and Print to Digital Marketing

September 05, 2009 By: azjogger Category: Marketing, Technology

General Motors is planning a seismic shift in its marketing spend during the next three years – and where the world’s number one automaker leads, others will inevitably follow.

According to unnamed company executives, half GM’s $3 billion annual budget is to be rerouted from traditional media to digital and one-to-one marketing, including gaming, mobile and interactive.

The trend away from TV and print is reflected in recent changes in the corridors of power at GM Planworks, the dedicated Starcom MediaVest Group agency that services the automaker’s media planning and buying needs.

New president/general manager Ken Taylor is charged with reintegrating Planworks into its parent company (part of the Publicis Groupe conglomerate) although Starcom USA ceo Laura Desmond insists the unit would not disappear.

She declared: “As GM has streamlined and got more agile, it seemed only appropriate to move from a siloed business approach to a more flexible, nimble approach that’d allow them to access all our centers of excellence.” 
  
It will give GM, for example, access to Starcom’s branded-entertainment division and allow it to take advantage of the group’s buying and planning power. In addition, the automaker can tap Publicis’ prize acquisition, Digitas, for digital planning and execution.

GM’s North America vp for vehicle sales, service and marketing, Mark LaNeve remains zip-lipped about numbers and strategy details but did say: “Like all major marketers, we’ve moved into digital media in a big way, but the other media types are still very important and will still be a big part of our mix.”

Small consolation for broadcasters and publishers facing the consequences of economic meltdown in the US and elsewhere.

Rival Hyundai Motor America is also doubling its online adspend this year compared with 2007. Marketing vp Joel Ewanick proclaims ominously: “Online is getting to the point where it may be more important than the 30-second TV spot.”

Data sourced from AdAge.com; additional content by WARC staff , 19 March 2008  Reprinted with permission from World Advertising Research Center