How does dvr technology affect the revenue from commercial advertising?

[mikeroberson2006]

I have always been curious, doesnt most channels depend on (or partially depend on) commercial advertising money to stay afloat? If so, how does dvr technology affect that or does it. I have had a dvr for years now and I love it just for the fact of being able to fast forward past the commercials. If we are not seeing the commercials, then you would figure that would kinda throw a wrench in the deal wouldnt it? Just wondering

 

[TNGTony]

This is nothing new. The argument has been around since the beginning of home VCR systems. At one point quite recently, the president of CBS was talking about making the network a pay service because watching TV without watching the commercials "would be like "stealing TV". No joke, he actually said that.

But there are a few ways of looking at this: With DVRs even if you skip passed commercials, you see and hear flashes. There are times when something will catch the viewer's eye and will go back to see what it was. At that point the viewer is paying much more attention to the product than if it were a passive ad floating by while the viewer was doing something else during the commercial. Even with 30 second instant skips this is true with me personally. At least once a day I go back because of a "what the hell was that" moment.

Another thing is that DVR users on average watch MORE TV (not less) than non-DVR users. This gives the advertisers more chances to catch your eye balls.

There is a long hard debate about this. What the real answer is no one knows.

See ya
Tony

 

[KE4EST]

Yeah same thing I have pondered upon for a long long time.

 

[Matthew s]

But you can't cut the commerical if watching live.

 

[springdale_sam]

right so there argument is stupid

 

[crappieguy]

Well we PAY a subscription to watch on sat. So the network is PAID by D* E* or cable. from us AND, they get commercial "advertising money" too. So their argument has NO merit since we are paying in the first place. Why should they get to double dip. If I have to watch commercials then I should not have to pay...

 

[yellowdragon]

I think the DVRs will make advertising agencies more creative. I tend to skip ads in DVR mode and stand up and do something if I have to watch a show live... But two ad campaigns always make me stop and watch; the GEICO cavemen and the Capitol One ads... Just want to see what new idea those people have cooked up.

Note: I'm no client of either...

 

[Super Dave]

That is where product placement in shows has become more in your face than before.

 

[TNGTony]

Ignore me...I have to post this for my own mental health
There = not "here"
Their = belongs to them
They're = short for "they are"

 

[balink]

Isn't Nielsen going to...

I read somewhere that Nielsen was going to start reporting Commercial ratings. I don't know if it is true or not, but it would add something to this debate if it were true, No?

I wonder if the DVR recording a commercial would count as a view or not. Would they be able to tell if you fast forwarded through it or not once recorded? I wouldn't think so.

Either way, I'm not giving up my DVR for anything!

 

[lakebum431]

Ignore me...I have to post this for my own mental health
There = not "here"
Their = belongs to them
They're = short for "they are"

That was bugging the crap out of me as well.

 

[navychop]

But there are a few ways of looking at this: With DVRs even if you skip passed commercials, you see and hear flashes. There are times when something will catch the viewer's eye and will go back to see what it was. At that point the viewer is paying much more attention to the product than if it were a passive ad floating by while the viewer was doing something else during the commercial. Even with 30 second instant skips this is true with me personally. At least once a day I go back because of a "what the hell was that" moment.

Yep. I think a result of DVRs has been better commercials. More entertaining.

 

[SaltiDawg]

But you can't cut the commerical if watching live.

No. That's why they call it a bathroom break.

 

[TNGTony]

I read somewhere that Nielsen was going to start reporting Commercial ratings.

Not quite. They launched a service that lets the advertiser know if their ad ran.

Nielsen - Press Release:Nielsen Launches Commercial Tracking System

The Nielsen Company announced today the launch of a new web-based commercial tracking system, KeepingTrac, which for the first time, enables clients to know whether their commercials ran the previous day according to their media plans. Until now, clients typically had to wait weeks for a report on commercial airings.

See ya
Tony

 

[Hall]

In theory, since DVR users typically don't see a commercial, they may not be enticed to purchase a product based on seeing it or learning about it from a commercial. Eventually, advertisers will not see the benefit of paying for commercial time.

Currently, the networks are NOT hurt. I was part of a "test" with Nielsen of DVR users and though they asked if we recorded a show and watched it later (they don't care so much *when* you watch vs did you watch), they didn't ask if we skipped commercials. Do they assume ALL DVR users do ? Anyway, this is how networks come up with their per-minute charge for commercials, that is, based on the number of viewers of their show (not the commercials !).

As far as double-dipping, well, they've been doing it so long now that it's normal for them, so to take half of their income away, yeah, they will fight that !