• by Joe Mandese  @mp_joemandese, May 25, 2004

Digital video recorders (DVR) typically are seen as the ultimate threat to TV advertising, giving consumers unsurpassed control over what they choose to watch or not watch on their TV sets, including TV commercials. And while it is true that most DVR subscribers do fast-forward through TV commercials when watching programming in replay mode, new research indicates that the net effect of DVRs actually increases the likelihood that viewers will see a TV commercial not decrease it.

The report, "Demystifying Digital Video Recorders," jointly published by InsightExpress and MediaPost, was based on multiple online surveys of DVR and non-DVR adopters, and finds that DVRs create incrementally higher opportunities for viewers to watch TV advertising than those viewers who do not use DVRs. The main contributors to this incremental boost are the fact that DVR subscribers have a higher satisfaction level with TV and typically spend 24 percent more time watching TV during an average week.

Most importantly, the research concludes that DVRs "recapture" TV commercial exposures that otherwise would have been "zapped" by non-DVR viewers. The study estimated that 51 percent of non-DVR viewers zap TV commercials, usually by using their remote control to change the channel when they come on. However, 96 percent of those viewers actually watch TV commercials when they become DVR subscribers, albeit in fast-forward mode.

While such fast-forwarding clearly diminishes the communications effectiveness of TV commercials, the study found that most fast-fowarders "notice" TV commercials either "always" (15 percent) or "sometimes" (52 percent) while zipping through the spots. Moreover, some big ad agencies and digital TV developers are exploring methods that would digitally compress commercials in such a way that would enable an abbreviated real-time version of the spots to be viewed during fast-forwarding.

As a result, the report concludes that DVRs actually recapture ad exposures or opportunities to see ads that would otherwise be lost from channel surfing in a non-DVR environment.

The report also suggests some interactive upside for advertisers, noting that "DVRs provide the unique opportunity to expand today's broadcast advertising model. Interestingly, 37 percent of DVR users stated they would like to be able to request information form advertisers when viewing a commercial for a product or a product category of interest to them. Such an approach would be received twice as favorably as the current 15- or 30-second broadcast advertising model."

DVRs May Be A Net Positive From An Ad Exposure Standpoint

                                      Before    After    Impact

                                        DVR      DVR    (Change) 
Weekly Viewing Hours                    19.2     23.9      +24% 
TV Viewing Satisfaction                  27%      37%
+37% 
Ad Erosion Due To Fast-Forwarding        --       --        -7% 
Recapture* Of 49% Viewers Who Zap Ads    --       --       +96% 

Source: InsightExpress' and MediaPost's "Demystifying Digital Video Recorders." *Recapture reflects the percentage of viewers who "zapped" commercials prior to having a DVR (51%), who fast-forward through commercials after getting a DVR (49%).