Nearly 10% of all television commercials in the US will be skipped by 2009, resulting in advertisers losing $6 billion worth of commercial impacts, according to a new study from consulting firm, Accenture.
Due to the impact of personal video recorders (PVRs), the research claims that nearly 10% of all households in the US will be equipped with technology to skip ads by 2009, up from the current 8% with just 2% of ads being skipped.
Accenture estimates that CPTs (cost-per-thousand) will increase at an annual rate of 3% through 2010.
Research firm, In-Stat, shows in its new report, TV Time-Shifting on the Rise, that demand for PVR products increased hugely in 2004, with unit shipments rising to over 11.4 million in 2004, up from 4.6 million in 2003.
Worldwide, households subscribing to a PVR service increased to over 9.2 million in May 2005, from 3.6 million in the same period last year (see Consumers Demand For PVRs More Than Doubles In A Year).
Over the next five years PVRs are set to enjoy massive growth, with penetration expected to reach over 11% of television households worldwide, according to a report from Informa Media (see DVRs Set To Become Essential Household Items).
PVR penetration in the UK is forecast to reach five million in the next four years, with usage set to reach 21% of the population by 2008, increasing to 34% by 2012, according to research from Starcom (see PVRs Causing Increasing Threat To Advertisers).
As a result of this dramatic uptake, Starcom estimates that, by 2008, advertisers will have lost 6% of commercial impacts – that is the opportunity for an individual to see a 30-second ad.
The increasing penetration of PVRs is causing growing concern for advertisers, with homes equipped with the technology skipping through 77% of ad breaks during the 42% of shows that are recorded, according to research unveiled at the beginning of the year at the Oxford Media Convention (see PVRs Causing Increasing Threat To Advertisers).
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