According to TV Week, advertisers are still reluctant to spend the extra money required to produce and place a commercial in high-def. Most industry analysts say a high-def commercial costs from 10 to 20 percent more than a standard definition spot.
"There's an inertia around it," Ed Erhardt, president of ESPN/ABC Sports customer marketing and sales, tells the magazine. "When someone starts to really recognize that commercials are being watched more because they're in HD, you'll see more advertisers and agencies going in that direction. But until there's data to back it up, it won't be known definitively that's what's going on, although most people feel that way."
However, TV Week reports that some advertising agencies are pushing hard to increase the number of high-def commercials. They say that the high-def audience has more disposable dollars -- and a greater appreciation of any company that supports high-def.
"If we do a Super Bowl spot this year, I'm going to fight tooth and nail to do it in HD because the majority of people watching in HD are going to invite three to four people over, and it doesn't cost any more media dollars to run it," said Josh Reynolds, executive producer on the HP account at Goodby, Silverstein & Partners.
Until now, advertisers have felt that the HD audience was too small to warrant the extra production cost. While more than 20 million U.S. homes have high-def sets, still less than 10 million have the HD tuners that are necessary to display the signals.
However, both those numbers are rising rapidly and the 2006 holiday shopping season should give high-def another major boost.
TV Week reports that media buyer Starcom USA recently purchased six HD ads and the high-def network INHD says it has twice as many HD ads running as last year. In addition, General Motors' Cadillac is now producing all spots in high-def.
"It makes sense that if you're looking to talk to an affluent, upscale consumer you should be producing in HD," said Starcom's Tracey Scheppach.


