Advertisers Use DVR Data To Demand Lower Ad Prices

from the skipping-for-dollars dept

While networks and advertisers have been trying to figure out how to accomodate the growing popularity of DVRs to their businesses, uptake of the devices has now reached a point where advertisers are using it to demand lower TV ad rates. They're saying they only want to pay for "live" viewers, not those who record the show, and presumably skip the ads when they play it back. Networks, of course, are resisting -- just one factor contributing to advertisers' reticence at following the traditional model of buying ad space for the whole seasons well in advance, and also helping a shift in ad dollars away from TV ads to new-media campaigns. Obviously the networks want to resist any moves to lower the prices they charge, but the bigger disruption is one they share with advertisers -- that they must make significant changes to their businesses. They must adapt their broadcast ads to make them more compelling, so people are more interested in watching them. But they must also take advantage of existing TV broadcast content, and adapt it to other platforms that can also make money by showing ads. It would be great, for both TV networks and advertisers, if things could just carry on like they have in terms of TV advertising. But as consumers' viewing habits and preferences change, so to must the companies' business models -- even if it is hard work.
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  1. identicon
    Anonymous Coward, 16 May 2006 @ 12:04pm

    Simple then - consumer's don't want to watch a bunch of commercials - cut the commercials by a multiple of 10 - then jack the price up for a spot by a multiple of 10.

    Advertisers should be careful for what they ask for... hehe

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