Friday, August 31, 2007

DVRs Ripe for Innovative Advertising

A new study shows that DVRs are now in 20 percent of U.S. households, up from about 8 percent just two years ago. The phone survey by Leichtman Research Group predicts that DVRs will be 60 million homes by 2011.

DVR users are an attractive audience because they make 33 percent above the mean household income, and 53 percent have HDTVs. The challenge for TV advertisers is that 84 percent of DVR users say skipping past commercials is an important feature, although only 8 percent say it is the most important.

The opportunity for TiVo and the DVR clones is to interject ads before a recorded program that are targeted and not disruptive to the viewing experience. One ad before each show is tolerable, and in working with cable partners to jointly mine data (with permission of course) it wouldn't be hard to find suitable content.

These ads should also be interactive, and DVRs can also store long form ads and personalized promotions. Perhaps the new Comcast/TiVo deal will yield a winning combination that will help TV advertisers recoup some of their fleeting ad revenue.

Posted By John Gartner at 10:56 AM
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