Wednesday, June 14, 2006

Less Than One Percent of TV Ads are in HD

Despite the fact that roughly 20 percent of American households have at least one high-def TV at home, less than one percent of ads shown on TV are in HD. The issue, according to some ad execs, is the increased cost of producing commercials in high-def, which they say can be as much as 20 percent higher than regular ads. However, the American Association of Advertising Agencies did a study that showed that the incremental cost increase is only $10,000 per ad. More from Mediaweek.

The ad agencies are making a big mistake by not filming more commercials in HD, even if the extra cost is as high as 20 percent. When I see an ad in high-def, I'm much more likely to watch it, particularly if it comes in the midst of a high-def program. If getting people like me to actually watch an ad instead of flipping the channel isn't worth a premium, then I don't know what is.

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