A study by the American Advertising Federation and Atlantic Media found that ad industry executives believe the industry is rapidly changing, with a resulting shift of media budgets to online, reports AdWeek. Some 80 percent said DVRs would have an impact on TV advertising, and more than half said they either changed or planned to change their ad plans because of the "TiVo effect." And online advertising is apparently the biggest beneficiary of the shift.
Respondents said media budgets devoted to online would increase nearly 33 percent in 2006, accounting for about 19 percent of spending. However, ad execs do not completely embrace the newest forms of interactive advertising: Receiving mixed scores on a scale of one to five were blogs (2.9), podcasts (2.6) and web-enabled cell phones (2.8).
Similarly, ad execs don't think the traditional TV ad model is going away just yet: About 58 percent said the 30-second spot would live on, but ad-skipping technology would result in more product placements, sponsorships and other formats.
