Wednesday, October 3, 2012

Impact of DVR use on Television Advertising


Increased use of DVR will cut into television advertising time as much as our ability to throw away mailbox junk mail cuts into direct mail advertising… nominally!  The amount of advertising dollars a company decides to spend, and how it spends them, is strictly up to its board of directors.  If dwindling advertising efficiency is a direct result of the market’s increased DVR use, then the board of directors will flow those advertising dollars into other advertising means, such as: direct mail, billboards, airplane banners, etc. 

Ted Harbert may be displeased with the impending direction that advertising’s “joint investment in programming” is heading, but the consumer has been displeased with the alternative direction for decades.   Yes, we understand that in order for programming entities to make a profit and to stay on the air, they must rely on advertising income and succumb to the consumer’s burden of having their programs interrupted by advertising.  However, as a result of that advertising, consumers have been brainwashed into buying things they don’t really need.  Additionally, behavior and mannerisms have been changed to favor advertising companies’ bottom line. 

Technology redefines not only the advertising companies, but also the world in general.  Think of how much our world has changed since the advent of the internet; favoring advertising companies, if anything.  Even think as far back as the wheel: we went from dragging rocks, slumped over as Neanderthals to using wheeled apparatuses and walking upright. (don’t quote me on that)  The bottom line is that consumers welcome the demise of television advertising.  No longer will we have to suffer through obnoxiously loud commercials that interrupt our television programming.  The decision should be left in the board of directors’ hands in figuring out where to re-allocate those advertising dollars in order to balance the loss of income from the increased use of the DVR.