Do DVRs decrease TV impact?

Monday, Feb 26, 18 By Nartak Media Group

The advent of the DVR, a digital video recorder, had advertising professionals concerned over the future of TV advertising. Would viewers speed through the commercials, missing the brand awareness and messaging?

Studies reveal interesting results:

DVR adoption is on the decline

Surprisingly, DVR penetration of households has fallen shorter than originally anticipated. A recent consumer-technology study of U.S. households by Forrester Research showed DVR usage is on the decline. Much of this is in response to TiVo and the like.

Do DVR users prefer recorded programming?

The answer may surprise you. Sports, Olympics, news, special events, and annual broadcasts such as award shows and political debates are always better viewed live.

Almost half of the adults surveyed prefer live TV or at least default to that first before going to recorded content. That’s how they watch TV. A smaller percentage do watch recorded programs. Whether this is by habit or for some other reason, such as the ongoing popularity of reality television that enables viewers to interact by casting votes, is undetermined.

Who are the DVR users?

DVR users tend to be younger and more affluent—often the exact demographic an advertiser is targeting. More than half of DVR users are under 45 years of age. However, because only one show can be recorded at a time, plenty of viewers are still viewing TV live.

Are DVRs helpful when it comes to commercial viewing?

On the flipside, some studies reveal that because of DVRs, the commercials are being viewed by the target market more often. Without the ability to prerecord certain shows that aired while viewers were away from the home, viewers may not have seen the commercials anyway. Now, more viewers are able to see the programs they want to see.

Could it be that a primetime commercial can rise in the days following the broadcast—thanks to DVR usage? Perhaps this lift, which has been shown to hold steady over the recent years, can actually help advertisers.

Clever Advertisers are continually seeking ways to leverage DVR usage

More targeted advertisements are the way to go. For example:

Contextual advertising: which discourage viewers from fast forwarding through a commercial break. For instance, if an ad piggy-backs on the nature of the show, it can actually increase viewer interest. A drama series that features related advertisements could work very effectively.
Addressable advertising: create highly targeted ads and send them to certain demographically chosen viewers based on their interests. For instance, a media outlet could partner with DIRECTTV to tailor the message and recipient. Certain advertising would be run in homes based on the viewers interest, keeping it relevant. The ads would be streamed and stored on DVRs.

Want to learn more about how Nartak Media Services can leverage television advertising for you today? Call us for more information.