US personal video recorder (PVR) manufacturer, TiVo, is employing technology in which commercials can’t be switched over, with seven advertisers in the US already signing up.
The new technology will see a logo, phone number, or other “call to action” pop up in the right-hand corner of the screen, even if users choose to fast-forward through traditional commercials.
TiVo executives are describing the new advert messaging system as “direct response”, because viewers can click on the logos to obtain further information about the company, though they still have the option of fast-forwarding to get to the programme content.
Recent research from Starcom also pin-points ways in which advertisers can overcome the problem of viewers fast-forwarding through adverts, revealing that viewers will pause to watch adverts if they are eye catching and relevant to them (see Strong Creative Helps Negate PVR Ad Avoidance).
Findings from Starcom’s Engagement Panel show that ways in which advertisers can keep audiences interested in their adverts include programme sponsorship and effective use of channel strategy.
Previous industry opinion was that PVRs would cause a severe threat to advertisers, with viewers using the devices to skip through a large proportion of adverts. Recent research from Accenture predicts that nearly 10% of all television commercials will be skipped by 2009 due to the fast forwarding technology (see US Advertisers To Lose 10% Of Commercial Impacts By 2009).
However, advertisers are being sent mixed signals over the dangers of PVR uptake. US studies from Frank N.Magid Associates claim that despite advertisers’ fears of TV adverts being skipped with the new technology, 55% of PVR users stop to watch adverts that catch their eye underlining the findings of Starcom (see Strong Growth For Entertainment Industry Led By Online Games).
New research from ESPN agrees with this, claiming that the majority of PVR households in the US are relatively new to the technology, with the devices not yet affecting their television viewing behaviour (see PVRs Not Yet Affecting TV Viewing Behaviour).
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