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Monday, August 07, 2006

Ad Agency Deathwatch: McKinsey Study

McKinsey & Co. Study Predicts Continuing Decline in TV Selling Power

Some quickie highlights from AdAge:

*By 2010, traditional TV advertising will be one-third as effective as it was in 1990
*15% decrease in buying power driving by cost-per-thousand rate increases
*23% decline in ads viewed due to switching off
*9% loss of attention to ads due to increased multitasking
*37% decrease in message impact due to saturation
*Real ad spending on prime-time broadcast TV has increased over last decade by about 40% - even as viewers have dropped almost 50%
*Paying more for less translates into a much higher cost-per-viewer-reached -- a trend also true in radio and print

*Teens spend less than half as much time watching TV as typical adults do
*Teens also spend 600% more time online, surfing the web

*According to Forrester Research's most recent North American Consumer Technology Adoption Study, people ages 18 to 26 spend more time online than watching TV and are adopting new technology faster than any other generation. Because of that, they tend to be more receptive to blog, podcast and mobile-web ads.

Get more at AdAge

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