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Attitudes to Traditional Advertising - US - November 2011

There has been a seismic shift in consumer attitudes toward traditional advertising and in the way that marketers spend money on traditional ads. The growth of the internet as a substitute/supplement to TV and widespread DVR use has resulted in a viewer that is often distracted and able to skip commercials entirely. In the print industry, marketers have reacted to plummeting readership with a significant decline in traditional spending and in the creation of a strategy of new integrated media.

In this report, Mintel looks at how the rules of the game are changing, as marketers struggle to better reach their targets through traditional media and integrate marketing efforts across traditional and new media platforms. Specifically, the report explores such topics as:

  • How has the internet’s impact on news and information-gathering, leisure activities, and modes of communication changed attitudes towards advertising?
  • How has the growth of DVR use, “time-shifting” and the ability to skip commercials changed the way that viewers think about ads? How have marketers responded?
  • Do all demographics treat DVRs the same? Which viewers are still paying attention to traditional ads?
  • Which forms of traditional advertising have recovered in 2010 and why?
  • How can traditional advertisements be used in conjunction with new media advertisements in multi-platform campaigns?
  • How have tablets affected the print advertising industry? In what ways are marketers connected to tablet readers?
  • What are innovative ways that traditional media have been used in the last year?
  • Will consumers continue to watch television at its broadcast time?
  • How can new technology offer marketers a chance to monetize old programming with new product placements?
  • How can new technology be used in marketing to younger demographics?

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Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Sales data
            • Consumer survey data
              • Abbreviations and terms
                • Abbreviations
                  • Terms
                  • Executive Summary

                    • Spend for traditional ads has declined 25% since 2006
                      • Traditional ad spend rebounds 18% in 2010
                        • Negative attitudes to traditional ads on the rise
                          • DVR penetration heads toward half of households
                            • Time-shifted viewing commonplace
                              • Nine in 10 DVR owners skip commercials
                                • Product placement effective among minority
                                  • Social, online media alter landscape
                                    • Television ads most noticed in spite of avoidance tactics
                                      • Radio may be undervalued
                                        • Excess repetition annoys viewers
                                          • Consumers expect to be entertained
                                            • Spanish-language Hispanics more open to ads than English-speakers
                                            • Insights and Opportunities

                                              • Integration of new and old media
                                                • Sports provide traditional marketers with a still-powerful arena
                                                  • More channels, more options, HD, and 3-D provide opportunity for better ads
                                                  • Inspire Insights

                                                      • Trend: Attention Economy
                                                        • Trend: Make it Mine
                                                        • Market Size and Forecast

                                                          • Ad spend rebounds post-recession, but still well below 2006 levels
                                                            • Figure 1: U.S. Advertising expenditures, at current prices, 2006-16
                                                            • Figure 2: U.S. Advertising expenditures, at inflation-adjusted prices, 2006-16
                                                          • Fan chart forecast
                                                              • Figure 3: Fan chart forecast of traditional ad spend, 2006-16
                                                          • Market Drivers

                                                            • Key points
                                                              • Broad trends for broadcast and print turning sour
                                                                • Figure 4: Radio usage and television ad avoidance, 2005-11
                                                                • Figure 5: Declining interest in traditional media, 2007-11
                                                              • Audience split on value of advertisements
                                                                • Figure 6: General attitudes to ads, July 2010-March 2011
                                                                • Figure 7: General attitudes to ads, by age, July 2010-March 2011
                                                                • Figure 8: General attitudes to ads, by household income, July 2010-March 2011
                                                              • Marketers integrate programming into ads
                                                                • For entertainment purposes only
                                                                  • Figure 9: Expectation for ads to be entertaining, 2007-11
                                                              • Competitive Context

                                                                • Key points
                                                                  • DVR penetration headed toward 50% of households
                                                                    • Figure 10: DVR penetration, 2005-11
                                                                    • Figure 11: DVR penetration, by age, July 2010-March 2011
                                                                    • Figure 12: DVR penetration, by household income, July 2010-March 2011
                                                                  • Tablet use encourages substitution of online media for print
                                                                    • Social media competes for billions of advertising dollars
                                                                    • Market Segmentation

                                                                      • Key points
                                                                        • Television makes up more than half of ad spend
                                                                          • Newspaper spend cut drastically over past five years
                                                                            • Radio booms in 2010
                                                                              • Figure 13: U.S. Advertising expenditures, by media type, 2006, 2009, 2010
                                                                          • Innovation and Innovators

                                                                            • SeamBI digitally alters reruns for product placement of new brands
                                                                              • Digital technology makes magazine ads interactive
                                                                                • Nielsen’s Media-Synch enhances traditional viewing experience with apps
                                                                                • Impact of New Technology on Traditional Advertising

                                                                                  • Key points
                                                                                    • New viewing models create need for tie-ins, integrated campaigns
                                                                                      • Figure 14: Media viewing hardware penetration and adoption, July 2011
                                                                                    • Internet-connected TVs, tablets common among 18-44s
                                                                                      • Figure 15: Media viewing hardware penetration, by age, July 2011
                                                                                    • New tech more common in higher-income households
                                                                                      • Figure 16: Media viewing hardware penetration, by household income, July 2011
                                                                                  • Reach and Attention

                                                                                    • Key points
                                                                                      • Television still reigns supreme
                                                                                        • Figure 17: Weekly reach of various ad formats, July 2011
                                                                                        • Figure 18: Weekly reach of various ad formats, by age, July 2011
                                                                                      • Catching attention with thin, broad campaigns
                                                                                        • Figure 19: Attention paid to ads by media format, July 2011
                                                                                    • Television

                                                                                      • Key points
                                                                                        • Excessive saturation harmful
                                                                                          • Figure 20: Attitudes to television commercials, July 2011
                                                                                          • Figure 21: Attitudes to television commercials, by gender, July 2011
                                                                                        • High-income households tough audience for television ads
                                                                                          • Figure 22: Attitudes to television content and ads, by household income, July 2010-March 2011
                                                                                        • Vast majority still watch on first screen exclusively
                                                                                          • Figure 23: Viewing habits, television vs. internet, by age, July 2011
                                                                                        • Social television common among 18-44s
                                                                                          • Figure 24: Social television viewing, by age, July 2011
                                                                                        • DVRs: Time-Shifting and Commercial Skipping
                                                                                          • Majority of DVR owners typically time-shift
                                                                                            • One third of less-affluent consumers watch TV shows at regular time
                                                                                              • Figure 25: Viewing habits, broadcast time vs. DVR recording, by household income, July 2011
                                                                                            • Nine in 10 DVR owners use DVR to skip commercials
                                                                                              • Figure 26: Use of DVR to skip commercials, July 2011
                                                                                            • High-income consumers skip away from ads
                                                                                              • Figure 27: Use of DVR to skip commercials, by household income, July 2011
                                                                                              • Figure 28: DVR penetration and use to skip commercials, by household income, July 2011
                                                                                          • Radio

                                                                                            • Key points
                                                                                              • Half tune in daily
                                                                                                • Figure 29: Radio usage, by age, July 2010-March 2011
                                                                                              • High-income groups more likely to be listening
                                                                                                • Figure 30: Radio usage, by household income, July 2010-March 2011
                                                                                            • Product Placement

                                                                                              • Key points
                                                                                                • Television vs. Movies
                                                                                                  • Figure 31: Top 10 shows with product placement, September–October 2010
                                                                                                  • Figure 32: Top 10 brands with TV product placement, September-October 2010
                                                                                                  • Figure 33: Attitudes to product placement, TV shows vs. movies, July 2010-March 2011
                                                                                                • Placement identified as impacting purchase decisions
                                                                                                  • Figure 34: Attitudes to product placement in TV shows, by age, July 2010-March 2011
                                                                                                • Lower-income groups respond positively to product placement
                                                                                                  • Figure 35: Attitudes to product placement in TV shows, by household income, July 2010-March 2011
                                                                                              • Impact of Race and Hispanic Origin

                                                                                                • Key points
                                                                                                  • More positive attitudes to ads
                                                                                                    • Figure 36: General attitudes to ads, by race and Hispanic origin, July 2010-March 2011
                                                                                                  • Diverging trends in broadcast media
                                                                                                    • Figure 37: DVR penetration, by race and Hispanic origin, July 2010-March 2011
                                                                                                    • Figure 38: Attitudes to television content and ads, by race and Hispanic origin, July 2010-March 2011
                                                                                                    • Figure 39: Radio usage, by race and Hispanic origin, July 2010-March 2011
                                                                                                    • Figure 40: Attitudes to product placement in television, by race and Hispanic origin, July 2010-March 2011
                                                                                                  • One third of black respondents watch TV shows when broadcast
                                                                                                    • Figure 41: Viewing habits, broadcast time vs. DVR recording, by race and Hispanic origin, July 2011
                                                                                                  • Black DVR owners much less likely to use DVR to skip commercials
                                                                                                    • Figure 42: Use of DVR to skip commercials, by race and Hispanic origin, July 2011
                                                                                                  • Nearly 25% of blacks and Hispanics watch equal amounts of video online
                                                                                                    • Figure 43: Viewing habits, television vs. internet, by race and Hispanic origin, July 2011
                                                                                                  • Hispanics twice as likely to use all forms of social viewing
                                                                                                    • Figure 44: Social television viewing, by race and Hispanic origin, July 2011
                                                                                                • Cluster Analysis

                                                                                                    • Go Gos
                                                                                                      • Demographics
                                                                                                        • Characteristics
                                                                                                          • Opportunity
                                                                                                            • Ad Enemies
                                                                                                              • Demographics
                                                                                                                • Characteristics
                                                                                                                  • Opportunity
                                                                                                                    • Tolerants
                                                                                                                      • Demographics
                                                                                                                        • Characteristics
                                                                                                                          • Opportunity
                                                                                                                            • Cluster characteristic tables
                                                                                                                              • Figure 45: Traditional advertising clusters, July 2011
                                                                                                                              • Figure 46: Viewing habits, television vs. internet, by clusters, July 2011
                                                                                                                              • Figure 47: Viewing habits, broadcast time vs. DVR recording, by clusters, July 2011
                                                                                                                              • Figure 48: Use of DVR to skip commercials, by clusters, July 2011
                                                                                                                              • Figure 49: Weekly reach of ad formats, by clusters, July 2011
                                                                                                                              • Figure 50: Multiple daily exposures to ad formats, by clusters, July 2011
                                                                                                                              • Figure 51: Attitudes to television commercials, by clusters, July 2011
                                                                                                                              • Figure 52: Attention paid to traditional advertisements, by clusters, July 2011
                                                                                                                            • Demographic tables
                                                                                                                              • Figure 53: Traditional advertising clusters, by gender, July 2011
                                                                                                                              • Figure 54: Traditional advertising clusters, by age, July 2011
                                                                                                                              • Figure 55: Traditional advertising clusters, by household income, July 2011
                                                                                                                              • Figure 56: Traditional advertising clusters, by education, July 2011
                                                                                                                              • Figure 57: Traditional advertising clusters, by employment, July 2011
                                                                                                                              • Figure 58: Traditional advertising clusters, by race, July 2011
                                                                                                                              • Figure 59: Traditional advertising clusters, by Hispanic origin, July 2011
                                                                                                                            • Cluster methodology
                                                                                                                            • Custom Consumer—Hispanic Language Demos

                                                                                                                              • Introduction
                                                                                                                                • Key points
                                                                                                                                  • Spanish-speakers less likely to own DVRs
                                                                                                                                    • Figure 60: DVR penetration, by language spoken in home, July 2010-March 2011
                                                                                                                                  • Spanish-speakers friendlier for TV ads and product placement
                                                                                                                                      • Figure 61: Attitudes to TV ads, by language spoken in home, July 2010-March 2011
                                                                                                                                      • Figure 62: Attitudes to product placement in TV shows, by language spoken in home, July 2010-March 2011
                                                                                                                                    • Radio trends in the opposite direction
                                                                                                                                      • Figure 63: Radio usage, by language spoken in home, July 2010-March 2011
                                                                                                                                  • Appendix—Other Useful Tables

                                                                                                                                    • Television habits and attitudes
                                                                                                                                      • Figure 64: Attitudes to television content and ads, by age, July 2010-March 2011
                                                                                                                                      • Figure 65: Viewing habits, television vs. internet, by household income, July 2011
                                                                                                                                    • Media viewing hardware penetration
                                                                                                                                      • Figure 66: Media viewing hardware penetration, by gender, July 2011
                                                                                                                                    • DVR usage
                                                                                                                                      • Figure 67: Use of DVR to skip commercials, by age, July 2011
                                                                                                                                      • Figure 68: Viewing habits, broadcast time vs. DVR recording, by age, July 2011
                                                                                                                                  • Appendix—Attitudes to Product Placement in Movies

                                                                                                                                      • Figure 69: Attitudes to product placement in movies, by age, July 2010-March 2011
                                                                                                                                      • Figure 70: Attitudes to product placement in movies, by household income, July 2010-March 2011
                                                                                                                                      • Figure 71: Attitudes to product placement in movies, by race and Hispanic origin, July 2010-March 2011
                                                                                                                                  • Appendix—Trade Associations

                                                                                                                                    Companies Covered

                                                                                                                                    • Good Housekeeping
                                                                                                                                    • Hearst Magazines
                                                                                                                                    • Interactive Advertising Bureau (UK)
                                                                                                                                    • Twentieth Century Fox Television

                                                                                                                                    Attitudes to Traditional Advertising - US - November 2011

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