What has been TiVo's effect on advertising?

[albionmoonlight]

I know that we have at least one guy here in advertising (Jon in Middle GA) and I think that we have some others.

From anyone in the know--how has TIVO changed the ad business, if at all? I know that I rarely watch live TV anymore and even tend to turn on football games an hour or so after they start so that I can miss all of the beer commercials.

I have the impression that certain shows may be more affected than others. I would guess that (my own habits notwithstanding) most people who watch sports still do it live. I would also guess that shows in syndication may get the TiVo treatment more than normal.

Still, I'd like to hear from someone on the inside how this is changing the ad business.

[Daimyo]

I'm sure it would have happened anyway, but it seems to my untrained eyes like there is a lot more product placement on shows than a few years back. For example, they make it pretty obvious that the judges on American Idol drink from Coca-cola cups.

[Honolulu_Blue]

Both my brother and father are in the business from the "seller's side" of things, they sell air time/ad space to advertizers (brother for the web, father for TV). While I haven't talked to them about it too much, I do pick things up and sort of pay attention to things when I hear it on TV or the radio.

Initially, I know there was some big fear among advertizers because TiVO allowed people to record shows and not commercials. I have never done this or even know how/if it is actually possible. The other fear, of course, is that people (like me) just fast forward commercials. Basically it's the same as deleting them, because the advertizers are paying for the air time, but not getting the exposure they want. There was talk of more product placement in shows or even having something come up on the screen while TiVO is fastforwarding. I haven't seen those put in place.

The last thing I heard on this (was just like week, I think, on NPR) is that advertisers are becoming less and less concerned with the TiVO phenomenon. In fact, they think that they are getting even more exposure because of it. Apparently, there are a number of people (I don't understand these people) who watch the commercials even when they record a show. Since TiVO allows people to watch more TV or re-watch shows or have friends/family watch the shows they record, some advertisers are feeling they are getting more bang for their buck due to these repeated showings and increase viewership.

From my own perspective, I certainly watch more TV now than I did pre-TiVO, though I never watch the commercials.

[KevinNU7]

Product placement used to be pretty hidden, now it is very over the top. Watch an episode of Extreme Makeover Home Edition, they blately say things like "All the wood used in this house is from Lowes"

[rkmsuf]

Doesn't seem like it has much effect. Is Tivo used widely enough to really make a difference?

[Honolulu_Blue]

Originally Posted by rkmsuf

Doesn't seem like it has much effect. Is Tivo used widely enough to really make a difference?

That's a good question. I have no idea what percentage of households have TiVO. That said, I know Comcast has been rolling or DVRs in a number of places. It certainly appears to be the wave of the future and I can't say I'm surprised. I think TiVO is one of the best entertainment techonologies developed since the internet. Me likey!

[Qwikshot]

I miss cable when it had no commercials...I think it's a brilliant system, can't wait to see how it gets screwed up.

[JonInMiddleGA]

As of July TiVo had 3.3 million subscribers.
As of September, there were just under 110 million TV households.

Do I wish TiVo would vanish? Sure, I guess so, I'm sure there's some negative impact.
Do I worry about TiVo? Not at this point, less than 3% of households have it & there's quite a few things that worry me more than it.

[JonInMiddleGA]

Originally Posted by Daimyo

I'm sure it would have happened anyway, but it seems to my untrained eyes like there is a lot more product placement on shows than a few years back.

Good eye.

http://www.marketingvox.com/archives..._media_growth/
Product Placement Tops Media Growth
10 Dec 2004

MediaPost reports that product placement on television is growing even faster than internet advertising, although expenditures aren't measured. Nielsen said that the top 10 brands managed to place more than twice as many product placements on network TV in the first nine months of 2004 than they did they year previously. They generated together 8,145 occurrences.

Anecdotally, I can tell you that placement has replaced web related stuff as the thing most often pushed at us as "value added" (i.e. buy the spots & we'll give you X,Y,and Z).

[henry296]

Originally Posted by JonInMiddleGA

As of July TiVo had 3.3 million subscribers.
As of September, there were just under 110 million TV households.

Do I wish TiVo would vanish? Sure, I guess so, I'm sure there's some negative impact.
Do I worry about TiVo? Not at this point, less than 3% of households have it & there's quite a few things that worry me more than it.

Jon,

Does that number include the Cable DVR subscribers. For example, I have the same functionality through my cable box as a Tivo user, but it is not powered by the Tivo software.

[JonInMiddleGA]

Originally Posted by henry296

Jon,

Does that number include the Cable DVR subscribers. For example, I have the same functionality through my cable box as a Tivo user, but it is not powered by the Tivo software.

Doubt it does, I pulled that figure straight from a TiVo article.

[saldana]

what are these "commericals" of which you speak?


i love my tivo

[Samdari]

Originally Posted by Honolulu_Blue

That's a good question. I have no idea what percentage of households have TiVO. That said, I know Comcast has been rolling or DVRs in a number of places. It certainly appears to be the wave of the future and I can't say I'm surprised. I think TiVO is one of the best entertainment techonologies developed since the internet. Me likey!

I read the results of a survey/study that someone reposted on AVS forum a few months ago. It came to two conclusions:

1) After an initial surge, apparently everyone who wanted TiVO has now bought it. Sales have actually slowed.

2) The % of TiVO owners who watch commercials is not significantly different than those who don't have TiVO. Cable and the 100% penetration of remote controls had a far more profound effect on how many people watch ads.

[Galaxy]

One word: NASCAR.

[Kodos]

Originally Posted by saldana

what are these "commericals" of which you speak?


i love my tivo

Me too. No commercials for me.

[QuikSand]

Originally Posted by JonInMiddleGA

(to Daimyo) Good eye.

Whew.

For a minute there, I read this as "Good bye" and thought Daimyo was a goner for pissing off Jon somehow. Glad I was wrong.

[QuikSand]

Originally Posted by KevinNU7

Product placement used to be pretty hidden, now it is very over the top. Watch an episode of Extreme Makeover Home Edition, they blately say things like "All the wood used in this house is from Lowes"

Well, we are certainly seeing a new breed of TV shows (ushered in, in part, by the "reality TV" lunacy, I'm certain) that are basically extended infomercials. Mrs. Q records Queer Eye sometimes, and from what I can tell, that show is nothing but an advertisement for the various sponsors who provide the loot they heap on these poor schmucks. I suspect that the various home decorating shows and a variety of others are essentially the same deal. Home Depot writes a check, and suddenly they are the place to go to get exactly what you need for your home makeover. Yawn.

[JonInMiddleGA]

Originally Posted by QuikSand

Whew.

For a minute there, I read this as "Good bye" and thought Daimyo was a goner for pissing off Jon somehow. Glad I was wrong.

I think I just found the perfect add for QS

[Marc Vaughan]

Darn it that ad's too small I warn to know what he's saying to the lass in it and whether its as warped as any of the possibilities which sprang through my mind