PVR May Yield Reduced TV Ad Spend

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New York -- 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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