New Research Study Confirms Value of Targeted TV Ads

While not earth shattering news to those who believe in the value of television advertising, a new Comcast and Starcom Media Vest study helps justify the value of TV to those who question its relevance in today's media market. While the study could be seen as somewhat suspect given the two sponsors of the research, it nevertheless is intriguing information.

The 16-month study indicates that TV viewers who are shown ads tailored to their interests are one-third less likely to switch channels. The study used Experian data to target pet owners with ads for pet products. Laura Desmond, CEO of Starcom MediaVest the Americas, said: "Clients are demanding accountability. We will reward those that deliver a higher level of measurement and accountability to us and our clients."

From The Wall Street Journal:

The idea of trying to reach people with ads that are more relevant isn't new to direct-mail and Web marketers. But TV advertising, at least in this respect, is behind the curve. The TV business is only slowly starting to roll out technology that allows advertisers to target narrow slices of the audience. With marketers clamoring for more sophistication and accountability in the $70 billion U.S. television-ad market, ad executives say such technology is key to preventing more of an exodus of advertising money from television to the Web.

The outcry from marketers is prompting companies such as Comcast and Starcom to experiment more with ways to deliver specific TV ads to consumers. The backers of the study, which was conducted from December 2006 to March 2008, used thousands of targeted ads on eight cable networks in 8,000 Comcast households in Huntsville, Ala. The test included ads from Starcom clients such as General Motors, Discover Financial Services's Discover Card, Kraft Foods, SABMiller's Miller Brewing, Procter & Gamble, Mars and Hallmark.