May 13, 2008
The DVR: Boon or Bust for Commercial Advertising?
Analysis of:
Can Online Video Cure Commercial Skipping? | www.adweek.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: 1. Current advertising and technical methodology associated with delayed (video recorded) television viewing does not promote healthy advertising revenue projections based on the Google study in the referenced article. 2. Opportunities abound for out-of-the-box enterprenuerial thinking that could resolve the commercial video skipping issue.
Analysis: The study by Google's Doubleclick Performics Division tells us what we already know if we are hooked on the ability of DVR's to cut an hour long television viewing session to thirty minutes, by allowing us to propel past all the commercials. But the interesting conclusion that can be reached from studying and re-studying this increased commercial-less video viewing is that a creative mind could take this problem and turn it into a goldmine. The word "PARADIGM" comes to mind, doesn't it? Here is a ridiculous, contrived example: What we don't know about each customer's buying habits and personal interests, we could get from a) asking the customer to tell us their preferences, b) using technology, i.e, IPTV to identify customer interests and preferences, or c) linking the purchasing of products (which is totally isolated from tv and internet) with targeted tv and online video viewing. Once the advertisers are armed with customer preferences, then the proper technology vehicle must be created to provide the pathway to the customer and their pocketbook. There is a technology guru and an advertising expert somewhere that could turn this topic into a Googilianaire's dream.
Analysis: The study by Google's Doubleclick Performics Division tells us what we already know if we are hooked on the ability of DVR's to cut an hour long television viewing session to thirty minutes, by allowing us to propel past all the commercials. But the interesting conclusion that can be reached from studying and re-studying this increased commercial-less video viewing is that a creative mind could take this problem and turn it into a goldmine. The word "PARADIGM" comes to mind, doesn't it? Here is a ridiculous, contrived example: What we don't know about each customer's buying habits and personal interests, we could get from a) asking the customer to tell us their preferences, b) using technology, i.e, IPTV to identify customer interests and preferences, or c) linking the purchasing of products (which is totally isolated from tv and internet) with targeted tv and online video viewing. Once the advertisers are armed with customer preferences, then the proper technology vehicle must be created to provide the pathway to the customer and their pocketbook. There is a technology guru and an advertising expert somewhere that could turn this topic into a Googilianaire's dream.
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