Advertisers set out to find out if viewers are paying attention

by Sam Matthews, Brand Republic 21-Jul-05, 08:50

LONDON – US ad bodies and advertisers, including Proctor & Gamble, are undertaking a research project that aims to measure when consumers pay attention to commercials.

The study, which has been endorsed by major advertisers including Proctor & Gamble, Masterfoods and Ford, will allow trade bodies to measure audience engagement as opposed to the current industry standard audience reach, which disregards whether people actually take in what they are exposed to.

The research aims to set up a new industry tool working out cost per engagement, which could radically shake-up how and what advertisers pay for network and cable advertising.

The research has been set up to combat the threat of personal video recorders, such as TiVo, to advertisers, which as well as drawing viewers away from TV ads have the potential to rewrite the rules.

However, earlier this week TiVo, which used to be promoted for its ad-skipping technology, has now started encouraging viewers to watch more advertising as it introduces several new developments for advertisers and viewers, to make more people watch advertising and to help advertisers target viewers better.

The ad engagement tool will allow advertisers to rely on a currency that tells them how many people engage with ads rather than how many were simply exposed to them. It is hoped the project could reduce the amount wasted on marketing budgets.

The research is being led by a committee formed by the Advertising Research Foundation (ARF), the American Association of Advertising Agencies (AAAA) and the Association of National Advertisers (ANA).

Mike Donahue, executive vice-president of the AAAA, said: "At the end of the committee's work, we hope to create a new media currency in cost per engagement that will compliment cost per exposure."

The research initiative -- known as MI4 (Measurement Initiative: Advertisers, Agencies, Media and Researchers) -- was unveiled during a presentation, "Engagement as the ROI Numerator," at the ANA's annual marketing accountability forum, held yesterday at the Grand Hyatt Hotel, in New York.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.