Preparing For The PVR
The power of television advertising is changing hands, with new technology causing increasing concern for advertisers. The digital era is giving viewers the power to dictate their television viewing habits, in short, the ability to fast-forward through adverts.
For the advertising world television adverts are an integral part of brand communication.
However, with the growing uptake of personal video recorders (PVRs), television audiences have the chance to avoid advertisers’ coveted spots, skimming though advert after advert effectively robbing advertisers of precious impacts. Research from media agency, Starcom, estimates that with the increasing rate of PVR penetration, by 2008 advertisers will have lost 6% of commercial impacts.
A study revealed earlier in the year at the Oxford Media Conference by media buying agency, PHD, signals the continuing decline of the 30-second ad, forecasting a 8.7% drop in commercial impacts by 2012.
PVR penetration, both in the UK and globally, is increasing at a dramatic rate, with Starcom predicting the technology will reach 21% of the population by 2008, increasing to 34% by 2012. In the US, Interpublic Group’s Magna Global USA estimates that PVRs will reach 32 million by 2010.
Globally, demand for PVR products increased hugely in 2004, with unit shipments rising to over 11.4 million, up from 4.6 million in 2003, according to research firm In-Stat.
There is no hiding from the fact that advertisers have to work fast in order to combat the problems being thrown up by this new technology, which could spell the end of traditional spot ads. As Bob Wootton, ISBA’s media director said at MediaTel’s Future of TV Seminar: “I’ve had a glimpse of the end, but that’s only my personal view.”
It seems that some of the advertising industry has started to fight back, however, with media group OMD recently announcing that it will begin testing a new form of advertising; delivering an advertising message even as viewers are fast forwarding through commercials.
Although the specifics of the test have not been divulged, David DeSocio, OMD’s US director of strategic marketing has implied that they will be able to run audio ad messages, superimpose billboard graphics, or run commercials in picture-in-picture screens while consumers are fast-forwarding through conventional advertising.
DeSocio said that the new advertising mechanisms would enable OMD’s clients to “involve the consumer even when they are in avoidance mode.”
OMD’s tests are an important step in the battle to keep on top of viewer habits. The changing face of television viewing is forcing advertisers to develop new and innovative ways of targeting audiences.
Indeed, for many consumers the ability to fast-forward adverts is one of the major benefits that PVRs can offer, with research published by PHD showing that homes in the UK using the technology skip through 77% of ad breaks during the 42% of shows that are recorded.
The latest study from Arbitron/Edison Media Research confirms this prediction, revealing that consumers are placing increasing importance on skipping through adverts, with 29% of PVR users in the US claiming that fast-forwarding adverts is their primary reason for making a PVR purchase.
Advertisers need to get on top of PVRs. One way of doing this is by looking into the changing needs of PVR consumers.
Mediaedge:cia’s research division has started to tackle the issue, with a recent study uncovering major insights into PVR viewing habits.
The study revealed valuable findings for advertisers concerned about viewer ad avoidance, showing that, sponsorship is able to cut through ad avoidance techniques, with viewers looking for heavily branded screen shots, break bumpers and programme trails as a signal to stop fast-forwarding.
Although PVRs represent a challenge for the advertising industry, it is one that, with research and creativity, can be overcome. In both the UK and US steps are being taken by agencies to recognise and deal with this problem before it becomes too late.
As broadcaster and journalist, Ray Snoddy commented at the MediaTel Future of TV seminar: “The advertising industry is not entirely full of stupid people – ultimately it will cope with this.”