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The Decline of the :30 Commercial and What it Means for Media Buyers

By admin | February 23, 2007

At the ERA Mid-Winter conference in late January, I heard from a range of people in the media buying industry, who indicated that results were off versus a year ago. Some speculated that it was due to the milder weather this winter, but it seems that it’s not just the weather alone that’s impacting the drtv industry, as well as the broader universe of brand marketers.
 
The CMO of Verizon Wireless, John Stratton, in a recent speech warned drtv marketing and entertainment executives that the traditional advertising model is broken. His company spends more than $1 billion a year for advertising on overvalued, inefficient, rapidly eroding mass-market advertising platforms that continue to underdeliver. He noted that What you’ve been selling for the last 50 years, (:30 TV spot), no longer works. (Source: Adage.com). A recent Yankelovich study seems to support Stratton’s concerns. The survey found:
 
- 54% of consumers resist being exposed to or pay attention to marketing.
 
- 56% avoid buying products that overwhelm them with marketing
 
- 69% are interested in products that permit blocking, skipping or opting out of marketing
 
Source: 2005 Yankelovich Marketing Receptivity Study New York Times (2/12/2006).
 
A 2004 Yankelovich study published in the New York Times reported that clutter, competition and fragmentation have steadily chipped away at the productivity of marketing and 70% of the study’s respondents noted that they tune out advertising more than they did just a few years ago.

Peter Koeppel is president of Koeppel Direct, a leading infomercial and direct response media buying firm.

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