Trending towards Branded Content and Social Commerce

A joint ANA (Association of National Advertisers) and Forrester Research Inc. survey of more than 100 national US advertisers has revealed a high level interest in branded entertainment and interactive media and a continued lack of confidence in the effectiveness of television ads.

Respondents to the Association of National Advertisers/Forrester study of national advertisers said their TV ad spending will remain flat this year. They also reported allocating only 41 percent of their media budgets to television last year versus 58 percent in 2008. Other findings include:

• Eighty percent of advertisers agree that branded entertainment will play much more of a role in TV advertising, and 38 percent plan to spend more on branded advertising in 2010 as an alternative to the 30-second spot. Seventy-five percent of respondents believe that interactive TV will be an effective source of lead generation, but only 28 percent plan to spend more on interactive TV ads in 2010

• A lack of confidence in TV ad effectiveness. Sixty-two percent of respondents think that TV ads have become less effective in the past two years. Clutter is the main challenge to TV ad effectiveness: 69 percent of advertisers would like fewer commercials per pod.
  

As marketers look for more efficient ways to engage their target audiences and use new channels such as social commerce, they are increasing their content marketing budgets. Content marketing budgets are up this year from 56% last year and 42% in 2008.  We recommend advertisers and broadcasters prepare for the future of social television by aiming to deliver more targeted commercials and true branded entertainment experiences that embrace the connected TV era through the use of social commerce and TV Widgets.

The survey results were presented at this week’s ANA’s TV & Everything Video Forum in New York on February 11. Respondents to the Forrester/ANA survey include 104 advertisers across 21 major industries, representing nearly $14 billion in media budgets. The survey was conducted from December 2009 to January 2010.

One Response to “Trending towards Branded Content and Social Commerce”

1. Excellent. Thanks so much for the post. -Kate says:

   April 17, 2010 at 7:15 am

   Excellent. Thanks so much for the post. -Kate