• by Jack Loechner , Staff Writer @mp_research, January 6, 2004

Well Targeted Advertising Defeats the PVR

Numerous surveys have been conducted over the last three years which indicate that one of the features consumers most like about personal video recorders (PVRs) is the ability to skip ads in live TV as well as recording programs without the ads. This, unsurprisingly, is why advertisers and traditional media companies have regarded PVRs as a serious threat to their traditional revenue models. In 2000 the CEA conducted a survey which showed that 71% of respondents were interested in the ability to skip commercials. 59% interested in pausing, 51% repeat a scene, 36% skip parts of show. More recent surveys also show the same findings.

Features of DVR US Consumers Find Appealing (% of respondents)

• Ability to skip commercial 81%
• Ability to watch regardless of air time 76%

Source; eBrain Market Research/CEA, June 2003

A Myers survey conducted in 2003 showed that 30.9% of PVR owners skipped or fast forwarded all commercials, and a further 21.7% indicated they did this to most commercials. This means that if 30% of homes have a PVR by the end of the decade and 50% of PVR users are skipping all or most commercials, TV advertising will become less effective for most advertisers. Saying that, the Myers Group survey did also indicate that PVR users skip commercials, but 15.3% will stop for selected ones. This gives a clear indication that if advertising is well targeted and appealing, TV viewers will watch.

Personal Video Recorder Owners in US Who Skip/Fast Forward Commercials 2003 (% of respondents)

• All commercials 30.9%
• Most commercials 21.7%
• Some commercials 12.6%
• A few commercials 4.2%
• Almost none 0.7%
• Never 14.6%

Source; Myers Group, March 2003

You can find out more here at eMarketer.