Promise Is Great but Growth Is Slow for Targeted TV Ads

For years, TV executives and advertisers have looked for ways to incorporate new technologies into the 30-second spot. Whether inspired or egged on by the measurability and interactivity of Internet ads, a number of formats for TV have emerged, including "addressability," where a number of different ads can target different households in the same 30-second timeframe; "requests for information," where people can request a brochure about a product advertised directly from the spot; and "telescoping," where viewers can click off a commercial onto an extended clip.

Despite the promises of these new formats, they've faced a number of hurdles. Advertisers, media buyers and agencies still see them as unproven products, and it's not entirely clear if enough of them will bother getting in the game. Some think TV's success has begotten a lack of urgency to change. TV continues to dominate media, with more people watching the medium than ever before, averaging 35 hours per week in early 2010, up from 33 hours a week the year before, according to Nielsen. Despite the emergence of digital video recording and web-enabled TV, people haven't lost their appetite for good, old-fashioned TV viewing. Advertisers are estimated to spend $60.5 billion on commercials this year, according to eMarketer. The major technological hurdle to addressable advertising is the difference in underlying technologies from each cable company. Advertisers that want to reach a national footprint would have to work with each provider separately to install their commercials. DirectTV and Dish are the only operators at the moment who can reach a national audience.