The Effects of DVR on Advertising

The DVR allows users to skip commercials with the touch of a remote button.

As the digital video recorder, also known as the DVR, continues to grow in popularity, the effect that it has on television advertising continues to become more drastic. This easy-to-use product allows viewers to watch programs whenever they like and also skip through commercials, which is becoming an increasing problem for advertisers.

Consumer Control

DVRs work like VCRs in the sense that they allow the user to record selected programming. However, DVRs are completely digital, unlike VCRs, which depend on the use of a video cassette in order to record a show or movie. The user selects which program he wants to record using his remote control and an on-screen program guide. The remote also allows the user to delete a recording or set up a series recording. Many DVRs allow users to record and store hours of programming. Some DVRs even have the capacity to record multiple shows at once while still allowing the user to view live TV. In short, this technology is designed to allow the user to be in control of when he watches television programming; thus, advertising that is time-dependent, such as a limited-time offer for a product, may not be seen by the consumer when the advertiser wants him to.

Zipping through Ads

The act of recording a television program in order to watch later, on one's own free time, is called timeshifting. Timeshifting activity is increasing among television viewers thanks to the growing availability of the DVR. When people have the ability to watch a recorded show at a later time at their convenience, they will likely skip through the commercials. Skipping through commercials on recorded programming is called zipping. Zipping is a large problem for television advertisers because when users engage in zipping, they are not seeing the advertisements.

New Advertising Solutions

When ads are not being watched, this makes advertisers hesitant about putting their ads on television. In some cases, companies are even pulling their ads from television in order to find new ways to advertise. Without ad revenue, networks and programs lose the necessary funding needed in order to broadcast. One way many advertisers are getting past the DVR problem is to include product placements in their program. For example, Coca-Cola has long featured product placement in "American Idol." Even if viewers record the show to watch later and zip past the commercials, they will still see the Coca-Cola glasses in front of the judges, which serves as an advertisement for the brand.

References

• "Advertising, Promotion, and Other Aspects of Integrated Marketing Communications"; Terence A. Shimp; 2007