Ads to pop up when TiVo users scan past commercials
By Jefferson Graham and Michelle Kessler, USA TODAY
Fast-forwarding through a television commercial might never be the same.
Beginning in March, TiVo users will see a lot more than hyper people at 60 times normal speed when they hit the remote to zip through TV ads during shows recorded on the devices. A static pop-up ad, or "billboard," will spring up as TiVo users skip through an ad — perhaps a logo for an advertiser, plus a message encouraging viewers to check out a new car or enter a contest.
"Realistically, we're not expecting this technology to force half the folks to go back and engage with the ad," says Kimber Sterling, TiVo's director of advertising. "But if 5% did, it would be a huge home run for us, and advertisers."
The popularity of personal video recorders such as TiVos is a big concern for advertisers. They worry ads will become irrelevant as viewers fast-forward to ignore them. Some 2 million consumers have TiVos, and 20% of households are expected to own PVRs by 2008, according to PricewaterhouseCoopers.
The TiVo device sold for $400 two years ago, and is now holiday-priced at $99. TiVo expects to have 2.8 million subscribers by January.
"TV programming is supported by advertisers," says independent analyst Rob Enderle of the Enderle Group. "If advertisers stop investing in the medium because people are fast-forwarding through the commercials, the programs won't get made. So obviously, this problem has to be stopped." Enderle notes that TiVo investors include NBC Universal, Time Warner and Sony, so naturally it must share advertisers' concerns.
Tim Spengler, executive vice president of ad-buying firm Initiative Media, calls TiVo's move "a step in the right direction ... satisfying viewers and the business of ad-supported, free TV."
TiVo fans weren't as enthusiastic.
"That really upsets me," says Paula Burg, 27, of Washington, who records about 15 hours of programming on her TiVo each week. "I love TiVo because it's what I want, when I want it. ... I'm already paying $12.95 a month (to avoid commercials)."
Alan Schulman, chief creative officer at Brand New World ad agency, says TiVo billboards won't help him. "A billboard is not like running an ad," he says. "A static impression isn't compelling."
The issue of commercial skipping is also playing out on Capitol Hill.
The Senate is expected to vote on the Intellectual Property Protection bill in this lame-duck session. The bill has a provision to prohibit technology that skips commercials during a DVD or televised movie; opponents, including advocacy group Public Knowledge, say the provision would make it a crime to fast-forward through a commercial.
In criticizing the bill last month, Sen. John McCain, R-Ariz., said: "Do we really expect to throw people in jail in 2004 for behavior they've been engaged in for more than a quarter century?"
