November 14, 2006

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Industry Leaders Expect a Significant Portion of Broadcast and Cable TV Ad Dollars to Shift to Online Video by 2010

WASHINGTON, D.C., November 14, 2006—A study conducted for the American Advertising Federation (AAF) reveals that advertising leaders have more than embraced new media as part of successful advertising strategies. Most leading ad executives expect a significant portion of broadcast and cable TV ad dollars to shift to online video by 2010, with 33 percent predicting that switch will be between 10 and 19 percent. In addition, 2007 budgets for online advertising are expected to rise by an average of 42 percent over 2006. As to the challenge of integrating traditional with online media, broadcast TV is seen as offering the "most innovative" integration with online media, while magazines are seen as "most effective" for driving consumers online.

Prepared by Atlantic Media Company, the fourth annual AAF Survey of Industry Leaders on Advertising Industry and New Media Trends offers significant insight into attitudes among high-level industry leaders regarding new media, the demands of the industry and the importance of mentoring. Industry leaders utilize a range of online ad targeting, but over half find behavioral targeting to be the "most effective" methodology. Search was deemed the "most effective" new media option and, not surprisingly, is expected to take the greatest share of the 2007 media budget. Industry leaders feel strongly (71 percent) that the online medium is "very effective" or "most effective" for direct response advertising, but note that there is difficulty reaching key demographics, particularly older audiences, online. Industry leaders rated Dove, Burger King, Volkswagen, Honda and Nike as the most successful recent integrated advertising campaigns.

The survey also asked a number of lifestyle questions related to industry success, uncovering the continued strain of a demanding industry. Nearly 63 percent of those surveyed perceive the demands of the advertising industry to be "higher" or "much higher" than those of other industries. In sharp contrast to findings of the past two years, leaders predict strong growth and recovery for careers in advertising, with overall career appeal cited as the healthiest category.

The AAF Survey of Industry Leaders on Advertising Industry and New Media Trends compiled the responses of 168 industry leaders who represent all sectors of the industry, with over 58 percent having worked in advertising for more than 16 years. A full analysis of the survey is available here (PowerPoint document).

Additional findings include the following:

  • The majority of industry leaders cite mentorship as important to their personal career success and a record 42 percent "always" mentor young professionals, a 68 percent increase over last year.
  • The top campaigns of the year were (in order) Apple Mac and Geico (two-way tie); Dove; Budweiser, Target, Mini Cooper (three-way tie); Apple iPod; and Aflac Insurance.
  • Top brands are (in order) Coca-Cola, Nike, Apple, Starbucks and McDonald's.
  • The most respected industry leader was David Ogilvy, followed by Bill Bernbach and Lee Clow.
  • The most important factor in achieving success in the industry is "dedication."

The survey was released in conjunction with the Advertising Hall of Achievement in New York City. The event featured a lineup of influential industry CEOs and top-level executives who are recipients of this prestigious award.

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The American Advertising Federation (AAF), headquartered in Washington, D.C., acts as the "Unifying Voice for Advertising." The AAF is the oldest national advertising trade association, representing 50,000 professionals in the advertising industry. The AAF has a national network of 200 ad clubs located in ad communities across the country. Through its 215 college chapters, the AAF provides 6,500 advertising students with real-world case studies and recruitment connections to corporate America. The AAF also has 130 blue-chip corporate members that are advertisers, agencies and media companies, comprising the nation's leading brands and corporations. For more information, visit the AAF's Web site at