Advertisers are "freaked out" about viewers using DVRs

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Sean Mota

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From TVweek.com

Advertisers are "freaked out" about viewers using DVRs to skip commercials while they watch television. That's the consensus among a few key television marketing professionals who gathered Thursday morning to discuss industry issues.

John Miller, chief marketing officer for NBC Universal Television Group and co-president of The NBC Agency, said the new media options available for viewers have more than confused advertisers, particularly because Nielsen Media Research has yet to figure out a way to measure viewership on the new platforms.

"It's freaked out the advertisers," he said. His colleagues agreed.

Michael Mischler, executive VP of marketing for Paramount Domestic Television, likened TiVo to "a light at the end of the tunnel that's actually an oncoming train." He echoed Mr. Miller's assessment: "The advertisers are feeling freaked," he said.

The discussion took place at TelevisionWeek's Power Breakfast: The New Television Marketing, Beyond the 30-Second Spot. The panel discussion was held at Le Meridian Hotel June 16 in Beverly Hills and boasted a powerful group of speakers, moderated by TVWeek Editor Alex Ben Block.

Does the ability to fast-forward through commercials mean the 30-second spot is dead? Not according to the panel. While new media is helping to drive the development of product placement, there is no need to abandon the more traditional options, the experts said.

"TiVo is not an excuse to pour millions of dollars into branded entertainment," said Jak Severson, CEO of Madison Road Entertainment, a branded entertainment studio serving the television and advertising industries. Branded entertainment should become a choice because it works, he said, not because it's the only choice.

Product placement was a hot topic among the panel members. Mr. Mischler listed some criteria for integrating products into shows: The integration must work for the advertiser, work in the show and work for the viewer. Mr. Severson agreed. "If the brand doesn't make the show better, the brand doesn't make the show," he said.

According to the five panelists, the 30-second spot will live on, but Chris Moseley, executive VP and chief marketing officer of Hallmark Channel and Hallmark Movie Channel, seemed to have the most hope. "The idea of telling a story in the advertising is really the way to go," she said.

Ms. Moseley said she likes the idea of making traditional commercials more interesting by "whipping up the emotional content." Emotional content is not necessarily sad or intense, she said, but can use humor, for example, to engage the viewers by connecting to them through emotions. "It's a difference between hard sell and soft sell," she said.

Michael Benson, senior VP of marketing, advertising and promotion for ABC Entertainment, said one of the emerging difficulties is the rising cost and increasing options that must be navigated using the same resources. "Now you have to leverage your dollars over many different areas," he said.

Despite the state of television advertising being what it is -- it was compared to the "Wild West" several times during the discussion -- where every spot buy and product placement is somewhat of a gamble, the panelists did agree that it all comes back to creative and quality programming.

"You have to like the show first," Mr. Miller said. "Everything else follows from that."
 
Its there own fault, If we didn't have to watch 10 to 15 commercials every 7 min. we wouldn't have to fast forward, just a few years ago it was 5 every 12 min. Who the hell wants to see the same commercial every 7 min.
 
What they are talking about in "product placement" is what you see in many movies. You see the brand item being used or hear and actor ask for the product by name. That costs extra. much more subtle but advertisirs pay big bucks to put their products in movies. It would not be a long stretch to see it done in TV. Actually FOX has been doing it a lot now. ROOMBA was featered about 6 weeks ago in one of their shows and American Idol is loaded with it with the judges drinking coke and the contestants signing and playing around in a Ford.
 
It is still a small percentage of total users that have PVRs. The weak minded ones most susceptible to advertising are still watching analog cable and might have a DVD or VCR player hooked up to the TV but only use it for playback.

This is 5 years away from being a huge problem for them UNLESS they can con some politicians into banning the things (like taking away features such as the commercial skip.... are we coming to a day where we see a red hand pop up on the screen when a commercial comes on and we try to skip it?)
 
Sounds like it time for broadcasters to get innovative. They been doing it this way for how long? Like someone else mention... they brought it on themselves by adding more and more commercials. You would think with interactivity kicking in they could figure a way of using it. Maybe something in the way of Tivo's showcase.
 
I think if a particular actor or show uses a particular product then the consumers would be more likely to use that product themselves. People think that if its good enough for the actor/show then its good enough for them that it must be good if they like it.
 
These dumbshits need to watch a few of their own commercials once in awhile. Little do they no that a benefit of a DVR is that if I see a great commercial, not only will I watch it multiple times, I will archive it to DVD. What's the difference between skipping the commercial or channel surfing or getting up to go pee? Face it, nobody likes to watch commercials anymore (I never did, except in Germany).
 
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