DVRs could trigger Internet ad boom: Forrester study

MUMBAI: Digital video recorders (DVRs) like TiVo are expected to revolutionise media buying strategies, finds UK's research firm Forrester.

According to a survey conducted by Forrester, 75 per cent of US-based advertisers interviewed plan to cut spending on TV commercials by 20 per cent in the next five years, as during this period, ad-skipping devices like TiVo are expected to hit about 30 million homes.



Digital video recorders let TV viewers record programming and skip over commercials easily. According to reports, customers have been welcoming this new tool as the latest additional feature of their television set.

Some crucial findings made by Forrester include:

* 75 per cent of the 55 advertisers surveyed plan to cut spending on TV commercials. 63 per cent would reduce their television ad budget by 20% and more.

* 75 per cent of them will hug internet as the advertising medium while 55 per cent will adopt internet search engine marketing techniques.

* More than 90 per cent want new measurements for TV ad ratings and program viewing.

* 75 per cent want to innovate with their content and programming to enliven their brand campaigns.

* 50 per cent of the advertisers surveyed will shift their advertising medium to radio and magazines.

According to the survey, some advertisers are also planning to experiment with their TV advertising strategies by adopting community-targeted campaigns. Innovative ways of TV advertising methods like screen badges and interactive ads that would bypass digital video recorders are also under consideration.

As the confusion is spreading and new tactics are on the anvil, a smart move from TiVo will see the company unveiling a feature targeted at advertisers who spend a lot of money on television commercials. This new feature will bring web-like, interactive advertisements to TV. This tool enables consumers to run commercials they are interested in, while their show continued recording in the background.

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