Changes and Challenges for Advertising

Senior US advertising executives are beginning to acknowledge the likely effect of digital video recorders (DVRs), according to a study for the American Advertising Federation (AAF) by Atlantic Media Company. DVRs allow viewers to skip ads and are on factor behind the continued growth of non-traditional ad formats.

The second annual AAF Survey of Industry Leaders on Advertising Trends finds that more than three-quarters of advertising leaders think DVRs will have a significant effect on the landscape of TV advertising. However, many think that so far the only proven example of the latter is product placement. As last year the study shows a lack of outright confidence in the advertising economy, with many citing a slow recovery rate.

The great majority of execs questioned rank multicultural market reach as extremely or very important, and finding and retaining qualified minority candidates is a growing concern, reflecting the need for cultural nuances to connect to a rapidly changing American demographic. There is also rising respect for online advertising, with most respondents regarding the Internet as an integral part of the general media mix.

Respondents chose the Apple iPod, Mini Cooper and Citibank Identity Theft campaigns as the most successful of 2003-2004; and Nike, Coca-Cola and McDonald's as the brands that achieved greatest success through advertising.

Results are based on responses from 121 industry leaders representing all sectors of the industry, with 70% having at least 15 years of experience in advertising. The AAF represents 50,000 professionals in the US advertising industry and 130 corporate members - advertisers, agencies and media companies. A copy of the survey is available at www.aaf.org. Atlantic Media's web site is at www.theatlantic.com.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.