Why is brand integration the wave of the future for TV ads

The TV traditional 30 second ad market is huge - $70B. But key technological trends are beginning to erode its value. The chief amongst them being DVR. DVRs are slated to be in 30% of US households by 2008 and these are the key demographic constituents. Almost 98% of these household skip ads while watching recorded TV. Add to that the viewing trends of today's generation - more folks are surfing the web and spending time playing video games v/s watching TV. i.e. 30 sec ad market is bleeding.

Off late, there has been a growing trend towards incorporating brands directly in shows. Remember the "junior mint" drop in Seinfeld or recent episodes of Apprentice with storyline integration. Networks and production companies are waking up to the fact that advertisers are well aware of the lack of effectiveness in 30 sec ads. Brand integration is the wave of the future for TV ads.