DVRs open doors for new ad sales
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Dec 6, 2002
ANAHEIM -- As if TV executives didn't have enough to worry about just considering a future where every household contains a digital video recorder. Now consumers want multiple units in their homes.
In April, about 35% of DVR users had more than one of the devices in their home, and six months later it was 43%, said Michael Collette, CEO of Ucentric Systems, a maker of software for DVRs.
The average DVR household now contains 1.7 units, and many of those who own just one DVR would prefer one on each of their TVs, Collette said Thursday at the BroadbandPlus trade show during a presentation called "PVRs and Advertising Sales: Getting Our Heads Out of the Sand."
The good news, Collette said, is that DVR technology -- which allows users to easily skip commercials -- won't be nearly as disruptive as some think. It's not so different from channel changing and fast-forwarding, he said.
His company taps into the $200 billion-a-year direct-marketing industry by delivering targeted ads to DVR hard drives. Such ads, he said, are measurable and interactive and may even be delivered to specific rooms in those households with multiple DVRs.
"If you sell dentures, we can deliver you 2 million toothless people," he said.
Collette also made the point that DVRs translate into more people viewing entire shows and fewer people channel surfing.
Kevin Barry, vp local sales and marketing at the Cabletelevision Advertising Bureau, moderated Thursday's discussion. Averaging some numbers from analysts, he said, there will be about 11 million DVR households in the United States by December 2005, with 5.5 million via direct-broadcast satellite, 3.85 million from wired cable and about 1.65 million free-standing units.
New advertising models must honor consumer preferences, permission and privacy -- a sort of Amazon.com meets TiVo meets the Ralphs card, said Laurie Coots, chief marketing officer of TBWA/Worldwide.
Product placement initiatives will be "ridiculously in your face, until we get sophisticated," she said.
She suggested using DVRs for repackaging content, such as delivering the group of Emmy-nominated sitcoms to hard drives -- all brought to consumers, naturally, by a sponsor.
Comcast Cable Advertising president Charlie Thurston said 23% of DVR users don't watch ads, but that 79% said they will if they are "interesting and relevant."
He predicted that in 2005, hundreds of versions of the same commercial will be "built on the fly" for delivery to different kinds of consumers.
For example, different elements advertising a trip to the Bahamas might stress golf, scuba diving, fun for singles or that the islands are a great place for families. Various versions of the ad would be assembled and delivered to DVR households based on users' preferences.
In April, about 35% of DVR users had more than one of the devices in their home, and six months later it was 43%, said Michael Collette, CEO of Ucentric Systems, a maker of software for DVRs.
The average DVR household now contains 1.7 units, and many of those who own just one DVR would prefer one on each of their TVs, Collette said Thursday at the BroadbandPlus trade show during a presentation called "PVRs and Advertising Sales: Getting Our Heads Out of the Sand."
The good news, Collette said, is that DVR technology -- which allows users to easily skip commercials -- won't be nearly as disruptive as some think. It's not so different from channel changing and fast-forwarding, he said.
His company taps into the $200 billion-a-year direct-marketing industry by delivering targeted ads to DVR hard drives. Such ads, he said, are measurable and interactive and may even be delivered to specific rooms in those households with multiple DVRs.
"If you sell dentures, we can deliver you 2 million toothless people," he said.
Collette also made the point that DVRs translate into more people viewing entire shows and fewer people channel surfing.
Kevin Barry, vp local sales and marketing at the Cabletelevision Advertising Bureau, moderated Thursday's discussion. Averaging some numbers from analysts, he said, there will be about 11 million DVR households in the United States by December 2005, with 5.5 million via direct-broadcast satellite, 3.85 million from wired cable and about 1.65 million free-standing units.
New advertising models must honor consumer preferences, permission and privacy -- a sort of Amazon.com meets TiVo meets the Ralphs card, said Laurie Coots, chief marketing officer of TBWA/Worldwide.
Product placement initiatives will be "ridiculously in your face, until we get sophisticated," she said.
She suggested using DVRs for repackaging content, such as delivering the group of Emmy-nominated sitcoms to hard drives -- all brought to consumers, naturally, by a sponsor.
Comcast Cable Advertising president Charlie Thurston said 23% of DVR users don't watch ads, but that 79% said they will if they are "interesting and relevant."
He predicted that in 2005, hundreds of versions of the same commercial will be "built on the fly" for delivery to different kinds of consumers.
For example, different elements advertising a trip to the Bahamas might stress golf, scuba diving, fun for singles or that the islands are a great place for families. Various versions of the ad would be assembled and delivered to DVR households based on users' preferences.
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