TivoEffect
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TiVo issues 30 for 30 interactive ad challenge to shift how brands buy advertising
The way TiVo sees things, advertisers shouldn't foolishly pay for ads no one is watching thanks to their DVRs, when they could use the same money to pay TiVo -- a DVR company -- for special ads DVR users are more likely to see. At least that's what we're getting from their recently announced 30 for 30 interactive ad challenge, which involves asking advertisers to move money from poorly performing prime-time 30-second TV spots and instead put it towards buying 30 days of ad exposure on TiVo. For those unfamiliar with TiVo's ad offerings, this exposure appears as clever advertisements shown in places such as the pause menu and home screen, or via special placements through fast-forward billboards and interactive tags that appear during regular commercials. While this may be bad news for TiVo's commercial-hating users who bought the device to avoid ads in the first place, depending on the trial's success, we're hoping TiVo could earn enough dough to drop the monthly subscription fee -- that is as long as VOD doesn't make the discussion moot. Sure the concept is crazy enough to make even Joseph Heller proud, but thankfully whatever happens, there's still HBO.
Study finds commercial-skipping DVRs don't affect purchases, 'TiVo effect' may not exist
Two years back, consumer research told us the vast majority of DVR users skipped commercials; now, statisticians at Duke University say that's not the case. More importantly, even those who do hit that oh-so-tempting skip button aren't necessarily spending less on advertised products as a result. Pulling data from over 1,200 TiVo boxes over the course of three years, Professor Carl Mela and colleagues found that a staggering 95 percent of television was watched live instead of recorded, giving viewers no opportunity to skip, and even when there was an opportunity, users took it only 6.5 percent of the time. Moreover, every attempt the researchers made to find a "TiVo effect" failed -- comparing those who had DVRs with those who didn't, they found no significant difference in the amount TV watchers spent on nine different goods (including cleaning and grooming products) advertised. This could be for a variety of reasons -- perhaps advertising doesn't work, period, or perhaps those without DVRs "skipped" commercials simply by walking out of the room -- but no matter the reason, it seems these days television advertisers don't have quite so much to fear.
