• by Seana Mulcahy , November 8, 2004

Good morning. Well, we are still abuzz with plenty to do. The New York Marathon was this weekend. Ad Tech is this week. Of course it is always the catalyst for many parties and events including the Eyeblaster creative awards.

Because of a zany work schedule, this writer needs to stay in Boston. Here we'll also be having the MITX awards. It is great to see the industry recognizing online advertising campaigns, creative, and Web sites formally recognized and awarded. It's too bad it is all happening at once on the East Coast though.

I'm hooked on TiVo. Too bad they don't make one for our lives. Can't you just see it now? You are in the middle of an event and you just hit pause and jump over to another. Or better yet, you plug in creative awards? as a category and you get a digital video of anything and everything related to the subject. How great would it be to watch what you missed real time in your pajamas in the family room?

So by now you think I am a freak. Well if you've been reading me for a while, you know I'm a little submerged in the digital media space (to say the least). I still think one of the coolest gadgets out there is the digital video recorder (DVR). You may have also heard it called a personal video recorder (PVR). Well it seems I'm not the only one hooked on TiVo. DVR penetration has finally gotten substantial here in the United States. It is predicted that 7 million American homes will have a DVR by the end of this year. According to a study from The Yankee Group, 33.5 million are expected to have one by the end of 2008.

Video on demand seems to be fodder for the widespread growth of DVRs. "Not only will cable deployment of DVRs drive growth, VOD and DVR from cable is a competitive driver for DBS (direct broadcast satellite) to aggressively push DVRs," the study said.

Other findings include:
- Aggressive pricing resulting from News Corp.'s acquisition of DirecTV and DVR services such as Highlights-on-Demand for NFL Sunday Ticket subscribers will drive DVR penetration on the DBS platform.
- Cable operators will continue to extend their DVR deployments to new markets and initial take-rates will hold true for newer markets.
- Consumer electronics manufacturers will continue to integrate DVR functions into DVD players, TVs, gaming consoles, and other devices.
- Consumer electronics manufacturers will deploy TiVo's basic service on low-cost devices that require no monthly service fee. This will lower trial barriers for consumers.

Many offline advertisers were in a panic about this potential growth when several of the companies emerged about four years ago. The ability to channel skip is what keeps them up at night. This has pushed product placement to a new level.

Consider this, being an old "Seinfeld" junkie, I plug in the show name to my DVR. When I am watching the episodes and I see a commercial. It's late and I have to get up early so I channel skip. I miss several ads in a row. As growth continues, the smart advertisers will get around this. For example, in one of the scenes Kramer comes stumbling through Jerry's door almost spilling a can of Diet Coke. Voila -- perfect match.

There is so much potential to advertise in this environment. However, it doesn't seem as if anyone is getting that strategic or that creative yet. We all banter on about behavioral targeting in the online space. I'd love to get a peek into people's DVR programs and preferences. For example, in a double income no kids (DINK) household, one adult has selected "The Ellen Show," "Seinfeld," the NFL halftime report, New England Patriots games, Larry King and CNN news alerts.

Don't you think this is a whole lot better than 'female, urban, makes $100K+'? There are endless possibilities here. I guess the bottom line is life is full of demands. We are used to having what we want, how we want it, and when we want it. Have you done any DVR advertising? Has it worked? If you haven't, why not? Post to me on the Spin Board.