Thursday, May 04, 2006
DVRS Cut Ads by $8 Billion
Skipping past commercials might cost the television industry $8 billion (or nearly 11 percent) of its advertising revenues this year, according to JupiterResearch. As DVR use goes up, and Nielsen starts reporting the lack of ad watching, it's going to get much worse.
A report by the analyst firm surprisingly says that DVR owners don't watch more TV than non-DVR households.
Skipping past commercials is as addictive as eating potato chips -- once you start, you don't stop. That's why video on demand and online TV viewing -- without a fast forward button -- are essential to the television industry. Broadcasters need to master the art of behavioral and targeted marketing and interactive ads so that they can derive the maximum value from their content.
Sure, putting a Chevy Tahoe in front of 50 million people is great, but running the same ad in front of 50,000 families who own camping gear is a much better spend. Making these ads interactive could also help to compensate for the lost eyeballs.
A report by the analyst firm surprisingly says that DVR owners don't watch more TV than non-DVR households.
Skipping past commercials is as addictive as eating potato chips -- once you start, you don't stop. That's why video on demand and online TV viewing -- without a fast forward button -- are essential to the television industry. Broadcasters need to master the art of behavioral and targeted marketing and interactive ads so that they can derive the maximum value from their content.
Sure, putting a Chevy Tahoe in front of 50 million people is great, but running the same ad in front of 50,000 families who own camping gear is a much better spend. Making these ads interactive could also help to compensate for the lost eyeballs.
Posted By John Gartner at 01:05 PM
Permanent Link: DVRS Cut Ads by $8 Billion
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