TV Advertising: Interactive or Bust?

The US TV market is at the forefront of some key technological forces reshaping the TV advertising market. Globally, industry research indicates that at least 22 percent of TV advertisements are being skipped in homes equipped with PVR/DVR technology. In US homes with PVR/DVRs, the proportion of ads skipped is as high as 50 percent. This makes the US an ideal testing ground for the effect that these disruptive technologies will eventually have globally, and for the strategies that companies should pursue to ensure sustainable high performance . The current industry consensus is that the cost per thousand viewers (CPM) rate in the US TV advertising market will rise by an average of 6 percent compounded annually through to 2010. Accenture