THE DIRTIEST FOUR-LETTER WORD: TIVO. WHAT DOES IT MEAN TO MARKETERS, AND HOW CAN YOU PLAN AROUND IT?
by Michael Hand
Marketers need to stop complaining about TiVo and the role it is playing in diluting media messages. Consumers will continue to time shift their favorite shows and fast forward through commercial interruptions. Can you blame them for loving the ability to watch a one-hour drama in 40- minutes? Digital Video Recorders (DVRs) were in more than 28 million homes at the end of 2008, and that number is expected to reach more than 52 million homes by 2014, an increase in penetration from 25 percent to 44 percent of all TV households according to Magna On-Demand Quarterly, December 2008 data. This increase is directly linked to the fact that the majority of in-home cable boxes entering the market today are being distributed with DVR capability already built in.
The way to beat this phenomenon is a topic of great debate in marketing conference rooms across America. One of the solutions major television networks are using to get around this and show “value” to advertisers is the excessive use of product placement in telecasts. Reality shows have always been great at working brand-name products into the program, such as a competition to win a Chevy truck on Survivor or kitchen staff using equipment from General Electric on Top Chef, but the trend has really taken off in scripted programs where lead characters now drive specific models of cars or eat specific brands of cereal in the program. As it is part of the content of the programming, viewers cannot escape the constant brand reminders, marketers just need to hope that the message and use of the product in telecast remains positive and in line with brand strategies. Savvy marketers are shifting their investment from straight advertising plans into this model of integrating products and buying adjacent commercial spots where brand personalities align.
Also worth mentioning as TiVo/DVR impact is analyzed are the added capabilities of Video on Demand that the major cable operators are adding to their services. These offerings are fast becoming a major revenue stream to the cable company as consumers watch recent blockbuster movies no longer in the cinema at a moderate cost and catch a range of “free” programs from music videos to children’s shows[md]all offer marketers a commercial before the program starts as a way to combat the lack of in-program ads.
The other consideration to beat this movement as a marketer is to shift more funds into “live” viewing occasions like sporting events and awards shows. These programs tend to require people to watch in real time or risk not taking part in the office banter the next day about what actress wore a “too revealing” dress on the red carpet or which wide receiver made an amazing over the shoulder, game-winning catch with only seconds left on the clock. Costs tend to be higher for placement of these spots, but the return on investment could be much stronger in the long run.
The fact remains: According to TiVo vice president Davina Kent, when customers watch recorded programs, they skip 70 percent of the commercials (source: New York Times, May 2006). As marketers we need to roll up our sleeves and find a solution to this problem.
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THE DIRTIEST FOUR-LETTER WORD: TIVO. WHAT DOES IT MEAN TO MARKETERS, AND HOW CAN YOU PLAN AROUND IT?Short URL: http://www.getperspectives.com/?p=348
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