ContentAgenda reports that DVR penetration will increase from 19% of TV households in 2007 to 35% by 2012, a net gain of 20 million DVRs, according to a new JupiterResearch report. The focus is, unsurprisingly, on the impact to advertising as more households switch to DVRs. They claim that active users, 60% of DVR owners, skip more commercials, and new types of advertising will be required. That’s what TiVo has been saying for quite a while now. In fact, some of these recommendations are exactly what TiVo pitches to advertisers:
Rather than fighting the behavior, advertisers and networks should embrace the DVR as a unique platform with its own advantages, Greene says.
DVRs, for example, offer more user interactivity with TVs. Advertisers also should be willing to experiment with different ad formats, such as overlay ads similar to those adopted by YouTube, to take advantage of interactivity and reduce the ability to skip ads.
â€œProduct placement also offers a practical alternative to traditional ads. However, advertisers must carefully integrate their products into programs and ensure that product placement is logical and does not alienate consumers,â€ the report says.
The market shift is inevitable. It is time to evolve or die.