| Chapter 1: | Introduction |
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As marketers struggle to have their voices heard in a changing and dynamic media landscape, gaining knowledge of advertising effectiveness becomes more significant.
Television advertising combines sight and sound—one of only a few forms of marketing communication with the ability to do so. However, television advertising is experiencing a sea change. Some industry professionals proclaim that television advertising has begun to die a slow death, while other professionals simply consider the industry ill. For example, in 2005, Unilever reported slashing its television advertising budget by 20% over its previous three annual budgets in favor of relationship-driven Internet executions or outdoor advertising (Terazono, 2005). Furthermore, in 2005, for the first time in 30 years, Heineken moved its dollars completely from television advertising budgets into sponsorship and point-of-sales promotions because they lacked confidence in television advertising (Walsh, 2005). These represent just two examples of how brand managers and agencies search for ways to use new technology for advertising delivery (Maddox, 2006).
Still, even with some marketing emphasis moving away from television, the medium continues to provide an outlet of reach and frequency to an unmatched degree. Likewise, much of what we would consider traditional television advertising—commercial messages—has moved to the Internet. Advertising expenditures for the Internet increased from $600 million in 1996 to over $9 billion as of 2006 (DMA, 2007). Many advertisers are wondering how to revamp traditional television content for the Internet. The advertiser’s need to understand the components of effective television advertising increases with the rise of technology, and these opportunities give video content providers new avenues for reaching consumers.