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Big Brands are Losing Confidence in TV Ads

AdAge reports that major brand advertisers are losing confidence in the effectiveness of TV advertising. More than three out of four advertisers -- 78 percent to be exact -- said they have less confidence today in the effectiveness of TV advertising than they did two years ago, according to a survey released at the Association of National Advertisers TV Ad Forum.

The study asked 133 national advertisers representing more than $20 billion in ad dollars about their attitudes toward TV advertising and how new technologies such as digital video recorders and video on demand will have on their TV ad budgets.

Almost 70 percent of advertisers believe DVRs and VOD will reduce or destroy the effectiveness of traditional 30-second commercials. Instead, they are looking at alternatives such as branded entertainment within TV programs (61 percent), TV program sponsorships (55 percent), interactive advertising during TV programs (48 percent), online video ads (45 percent) and product placement (44 percent).

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