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The future of TV advertising

Published by: Datamonitor

Published: Sep. 22, 2003 - 18 Pages


Table of Contents


TABLE OF CONTENTS

ABOUT DATAMONITOR 2

OVERVIEW 5

Outline of the brief 5

Key findings from The Future of TV Advertising 5

JUSTIFICATION 6

Numerous challenges facing TV advertising 6

Digital TV threatens traditional advertising business models 6

iTV technologies present both threat and opportunity 7

New opportunities presented by interactive TV 7

Making the TV a direct marketing environment 7

Extending the branding experience 8

Sponsorship and advertiser-funded programming 9

iTV gives rise to new marketing inventory 9

Numerous creative issues to be overcome 10

Appropriate focus - direct marketing or branding? 10

Same creative values needed for interactivity as standard advert 11

Sustainable usage dependent on entertaining experience 12

Entertainment vital to driving usage 12

Determinants of success 12

Red-button fatigue 13

THE FUTURE DECODED 14

Advertising and the PVR 14

Don’t wait for mass-market PVR uptake 14

Exploit the strengths of PVRs to transform the ad experience 15

Potential for targeted advertising, but not without problems 16

Recognise advertising as being an opt-in option 17

APPENDIX 18

2002 digital and interactive TV market reports 18

2003 digital and interactive TV market reports 18

Interactive TV SPP management team 18

How to contact experts in your industry 18





Abstract

Introduction:
The continued development of digital TV is presenting many new challenges to traditional broadcast and advertising business models, with numerous trends making advertising an entirely ‘opt-in’ activity. However, at the same time interactive TV provides the means to use the medium more effectively through more personalized, more actionable and more emotive communication with viewers.

Scope:
* Considers the opportunities interactive TV presents to extend and enhance existing advertising strategies and develop new types of viewer experience

* Assesses the creative challenges and strategic issues in devising successful interactive TV advertising campaigns

* Discusses the importance of entertainment in driving viewer involvement and interaction and the associated difficulties for advertisers and agencies

* Analyzes the likely impact of PVRs on existing advertising business models and the required approach in exploiting their capabilities for advertising

Report Highlights:
Interactivity provides the means to use the TV more effectively as an advertising medium through more personalized, more actionable and more emotive communication with viewers. Beyond making the TV a direct marketing environment, iTV also enables the extension of the branding experience and new approaches to program sponsorship and funding.

The success of iTV advertising campaigns is dependent on the interactive elements having the same creative values and production quality as the standard advert, requiring the inclusion of interactive plans and expertise from the start of the project.

As opposed to destroying advertising business models, PVRs could prove a major opportunity, however this requires that advertising is accepted as an opt-in experience and that advertisers develop new advertising formats, exploiting the hard disc capacity and freedom from timing constraints.

Reasons to Purchase:
* Determine the key strategic and creative issues involved in successfully exploiting iTV to protect and enhance TV advertising business models

* Understand how PVRs can be used to add greater value to TV advertising, and the ways in which their capabilities can be exploited to achieve this



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