The TiVo Giant…

24 03 2008

I have a DVR in my house. Not TiVo, but a DVR from Comcast. As a result, I never watch live television anymore. Well, I rarely do. Although, with my busy life right now, I barely watch anything. I am so spoiled to being able to “zoom” through commercials, that I get irritated when I have to watch them. I usually catch the beginning of the first commercial, and the tail end of the last commercial. I have been wondering for a while now how the advent of TiVo and DVR are going to affect companies that advertise with commercials on television. Actually, I have peppered one of my professors with so many questions about it, that when he found an article regarding the subject, he forwarded it to me. The article, published today in Advertising Age, answers, or tries to, some of the questions I’ve had regarding the effect of TiVo. The study which was conducted over three years, found that new product purchasing in DVR households was about 5% lower than in non-DVR households. This is not a significant enough number to be distasterous for any major brands. Brands that spend 20% of more of there media budget outside television saw no difference. So, are we going to see any changes to the way brands are marketed in the media? I’m willing to bet yes. A 5% decrease in sales in households that have DVRs is not threatening right now. But eventually, DVRs are going to penetrate more and more households. That 5% starts to look “bigger and badder” as DVRs become more popular. I predict more product placement. It doesn’t have the same effect as a commercial, but given the choice of the product being seen, or not…what do advertisers choose? I also think that we are going to see a restructing of how media buys are conducted. I think it will get as detailed as which place your commercial will hold in the 5 minute slot in the second commercial break of CSI Miami. The first commercial and the last commercial should be more expensive, because (as I said) those are the commercials that are more likely to be seen in a DVR situation. How about online advertising? Are we going to see more online advertisements? I think so. People don’t think about online advertising as much right now, but let me state one glaring fact. People are more engaged when working on the computer than they are when they are staring at a television screen. Think of it as leaning back in a recliner, versus sitting at a desk. Even if I am just playing a lame computer game I am more engaged when I am on the computer than when I have the television on. I guess we will just have to wait and see in the months (years) to come.
You can read the rest of the article by Jack Neff here.

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One response

24 03 2008
Matt Hanson

Good writing. Keep up the good work. I just added your RSS feed my Google News Reader..

Matt Hanson

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