Forrester Probes PVR-Ad Relationship

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Three-fourths of advertisers said they would reduce TV spending as a result of ad-skipping digital-video recorders, according to a survey of Madison Avenue by Forrester Research Inc. and the Association of National Advertisers.

Of those willing to cut spending, 75 percent said they'd slice budgets 21 percent or more, and 26 percent said they'd eliminate 40 percent of their budgets.

The respondents said they'd plow money into program sponsorships and product placement. They also said they'd look at spending advertising in other media, such as magazines, loyalty programs, electronic mail and Internet ads.

Forrester's Josh Bernoff said in a prepared statement, "Networks must tie ads closer to programs, and advertisers must transform their commercials to lure in the ad-skipper."

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