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Attitudes Towards Advertising in Digital and Broadcast Media - US

Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: December 2005
Product Code: R560-1817
Description
The changes in media explored in this report suggest that the system of ad placement is on the verge of a significant change. Annoyance with television advertising is widespread, with 62% of Mintel’s respondents saying that they are not interested in the products in the commercials they see and 52% saying that they don’t like being forced to watch commercials. Digital cable and digital video recorders (DVRs) have given viewers more freedom regarding what they watch and when they watch it. Movies and original cable programming are now available commercial-free On Demand as a part of basic cable service in major urban markets. DVRs allow viewers to record programming with a single click and fast-forward through commercials, and the majority of DVR users do so. However, while DVRs pose a momentary problem for marketers, they may be the enablers of a future form of superior targeting, where consumers can “pull” entertaining commercials for voluntary viewing.

Already, internet advertisements based on a “pull” model offer superior targeting opportunities and accountability, whereby consumers themselves indicate what kind of advertising they would be interested in, such as on Google and other Internet search engines. Not only does pull advertising allow for superior targeting, it also gives sponsors a more accurate idea of how many consumers are actually paying attention to their advertisements by monitoring click-through rates. This measure of accountability has driven a boom in pay-per-click advertising in cyberspace.

This report provides insight into the merits of different advertising platforms by examining the consumer’s subjective impression of advertising across these platforms:
  • The Market Factors section provides a brief on perceived differences in attitudes toward advertising by generation, followed by a discussion of annual advertising spend by platform, and the trend of moving from push to pull advertising
  • The Comparison of Media Types chapter compares respondents’ attention to the leading advertising platforms, including differences between television segments
  • Attitudes toward Television Advertising examines the extent to which adult and teen respondents enjoy or avoid television advertising, as well as exploring reasons why some respondents find television advertising distasteful
  • The final section of this report, Digital Video Recording explores DVR penetration, including commentary on expected changes to television advertising as DVR penetration increases
Table of Contents
Introduction and Abbreviations

Introduction

Subject of this report

Data for this report

Other relevant reports

Abbreviations & terms

Abbreviations

Terms



Executive Summary

Advertisers focus on two generations: Boomers and Echo Boomers

Market growth continues

Television is still king

Change in media buying habits is slow

Shift from push to pull

Advertising more effective on consumers with passive lifestyles

Women and minority groups more tolerant of advertising

Cinema advertising emerges as a way to reach younger consumers

DVR penetration poised for growth

Internet the best way to reach resistant consumers



Market Factors

Demographics

Figure 1: U.S. population by generation, 2000, 2005 and 2010

Baby Boomers

Generation X

Echo Boom (Gen Y)

Advertising spend

Figure 2: Total U.S. advertising spend, 1999-2005

Figure 3: Graph: Total U.S. advertising spend, 1999-2005

Figure 4: Graph: Growth in U.S. real GDP and total domestic ad spending, 1997-2005

Figure 5: Growth in total domestic ad spend and P&G domestic ad spend, 1999-2005

Ad spend segmentation

Figure 6: Total U.S. ad spend by media type, 2002 & 2004

Figure 7: Indexed ad spend in current prices by media type, 1999-2004

Television

Figure 8: Decline of average network ratings, 1990 and 2003

Internet

Other high growth forms of advertisement

Market trend: a shift from push to pull



Comparison of Media Types

Which media types attract the most attention

Figure 9: Attention paid to advertising in various media types, by gender, October 2005

Figure 10: Attention paid to advertising in various media types, by age, October 2005

Figure 11: Attention paid to advertising in various media types, by age, October 2005

Figure 12: Attention paid to advertising in various media types, by income, October 2005

Figure 13: Attention paid to advertising in various media types, by race/ethnicity, October 2005

Likelihood of paying attention to an ad, by media type

Figure 14: Consistency of attention paid to advertisements in various media types, by gender, October 2005

Figure 15: Consistency of attention paid to advertisements in various media types, by age, October 2005

Figure 16: Consistency of attention paid to advertisements in various media types, by race/ethnicity, October 2005

Figure 17: Consistency of attention paid to advertisements in various media types, by presence of children in the household, October 2005

Summary

Comparison of television platforms

Relative viewerships of different television platforms

Figure 18: Viewing of different television platforms, by gender, October 2005

Figure 19: Viewing of different television platforms, by age, October 2005

Figure 20: Viewing of different television platforms, by household income, October 2005

Figure 21: Viewing of different television platforms, by race/ethnicity, October 2005

Figure 22: Viewing of different television platforms, by number of children in the household, October 2005

Attitudes toward advertising on different television platforms

Figure 23: Attitudes toward advertising on different television platforms, by gender, October 2005

Figure 24: Attitudes toward advertising on different television platforms, by age, October 2005

Figure 25: Attitudes toward advertising on different television platforms by race/ethnicity, October 2005

Summary



Attitudes toward Television Advertising

Demographic trends in general attitudes toward television advertising

Figure 26: Attitudes toward advertising, by gender, May 2004-May 2005

Figure 27: Attitudes toward advertising, by age, May 2004-May 2005

Figure 28: Graph: Key attitudes toward advertising, by age, May 2004-May 2005

Figure 29: Attitudes toward advertising, by household income, May 2004-May 2005

Figure 30: Graph: Key attitudes toward advertising, by household income, May 2004-May 2005

Figure 31: Attitudes toward advertising, by race/ethnicity, May 2004-May 2005

Figure 32: Attitudes toward advertising, by presence of children in household, May 2004-May 2005

Figure 33: Attitudes toward advertising, by selected cohorts, May 2004-May 2005

Additional attitudes toward TV advertising

Figure 34: Additional attitudes toward TV advertising, by age, October 2005

Reasons television advertisements are annoying

Figure 35: Reasons why television advertising is annoying, by gender, October 2005

Figure 36: Reasons why television advertising is annoying, by age, October 2005

Figure 37: Graph: Key reasons why television advertising is annoying, by age, October 2005

Figure 38: Reasons why television advertising is annoying, by household income, October 2005

Figure 39: Reasons why television advertising is annoying, by race/ethnicity, October 2005

Figure 40: Reasons why television advertising is annoying, by children in the household, October 2005

Summary

Attitudes of teens toward TV advertising

Figure 41: Teen attitudes toward television, by age and gender, October 2005

Figure 42: Teen attitudes toward television, by race/ethnicity, October 2005

Teen attitudes toward the movies

Figure 43: Teen attitudes toward movies, ads in movie theaters, by age and gender, October 2005

Figure 44: Teen attitudes toward movies, ads in movie theaters, by race/ethnicity, October 2005

Teen attitudes toward newspapers

Figure 45: Teen attitudes toward newspapers, ads in newspapers, by age and gender, October 2005

Figure 46: Teen attitudes toward newspapers, ads in newspapers, by race/ethnicity, October 2005

Summary



Digital Video Recording

DVR penetration

Figure 47: DVR penetration by gender, October 2005

Figure 48: DVR penetration by age, October 2005

Figure 49: DVR penetration by household income, October 2005

Figure 50: DVR penetration, by number of children in household, October 2005

Effect of DVR use on commercial viewing

Figure 51: Skipping of commercials with DVR, by race/ethnicity, October 2005

Figure 52: Recognition of commercials skipped with DVR, October 2005

Characteristics of DVR users

Figure 53: Attitudes toward media and the Internet correlated to DVR usage, May 2004-May 2005

Summary



Appendix: Trade Associations



Appendix: Simmons cohorts

Figure 54: Married couples cohorts

Figure 55: Single women cohorts

Figure 56: Single men cohorts



Appendix: Research Methodology

Consumer Research

Datascension, Inc. and Harris Interactive Service Bureau

Greenfield Online

ICR Surveys EXCEL

Simmons National Consumer Surveys

Technometrica TechnoExpresssm

Trade Research

Informal trade research

Formal trade research

Desk & Internet Research

Sources

Definitions

Forecasts



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