Electronic advertising market to grow at 2.8% a year

PVRs have turned the broadcast TV ad business on its head. In-Stat/MDR’s research shows that over two thirds of those with a PVR skip ads, with 75% of those individuals skipping over 50% of ads shown. The recent $7.7 mln giveaway of Pontiac cars on Oprah to create a marketing event is an example of what is being done today outside of the 30-second commercial. In addition to looking for ways to best utilize broadcast TV space in the world of PVRs, ad executives are reallocating their ad budgets. The increasingly powerful methods of paid search and broadband video advertising have created highly targeted ways to reach consumers.

The total US electronic advertising market will see an average growth rate of 2.8% from 2005 through 2009. The growth will largely be driven by Internet advertising, and to a lesser extent cable TV and video game advertising. Video game advertising is a rapidly growing category. Soon, on-line gaming audiences will be tracked much in the way TV audiences are tracked today. The total market for video game-based advertising will reach $2.8 bln by 2009.