CONSUMER BEHAVIOR ANALYSIS
Discussion #5
Living in a DVR World
Ari Haryadi Deky Hapsoro
What is DVR ? Digital video recorder (DVR), sometimes referred
to by the merchandising term personal video recorder (PVR), is a consumer electronics device or application software that records video in a digital format to a disk drive, USB flash drive, SD memory card, SSD or other local or networked mass storage device
Launched at the 1999 Consumer Electronics Show in Las Vegas
A television set with built-in digital video-recording facilities was introduced by LG in 2007, followed by other manufacturers
40 % of US households have DVR and Expected to Grow
Marketers perspective is ad avoidance
Skip add twice than live
50 – 90 % fast forward (Zipping, Zapping and Muting Behavior Impact of Media Exposure)
The FACT Most viewers who zip through DVR commercial still “notice”
the ads and, in fact, will stop and view commercials they are interested in
DVR users who fast-forwarded through TV ads were more “engaged” with the ads than those who did not (Inner –scope Research)
The RESEARCH
The MARKETERS IDEA Marketers think beyond Traditional Models as
DVR transform how consumer watch TV
Shortened version of ad, which plays in real time during fast forwarding
Simplicity
Having Key Brand Information in the center of the screen where it’s most likely to be notice
The SUGGESTIONS
Media Exposure Self Selecting Nature
Still-Frame ads
This strategy keeps the visual relatively static for 30 seconds, giving marketers a chance to present their package, brand and logo and have it visible even during fast forwarding
Hybrid ads
Hybrid ads mimic the show the audience is watching. These tie-ins to shows seem to be particularly effective at staving off ad skipping
Interactive ads
Interactivity provides marketers with more freedom in a DVR context to deliver relevant brand information and content to consumer who want it
Dynamic ad placement
Direct TV is now using technology that allows “seamless insertion of household addressable ads into both live and recorded video content from the DVR hard drive
OTHER STATEGY
Do you think that later adopters of DVRs will be less interested in “ad avoidance” capabilities? Will this changes as they “learn” to use their DVR?
Yes. The fact that consumers would be willing to accept commercials in return for not having pay $10/month for their DVR showed that “Ad avoidance” is less interested
Yes. DVRs created for time shift TV. Higher record capacity will be and advantage of using DVR compared with “Ad Avoidance Capabilities”
CRITICAL THINKING QUESTIONS
Can you think of other strategies beyond those discussed that could be used to reduce consumers tendency to skip ads even with a DVR
Create an Attractive Ad – Stimulate viewers to watch and engaged
Collaborative between Advertiser and DVR industry
The study Advertising in the DVR Age shows that about 70 percent of the advertising executives acknowledge that they do not have the relevant information about DVRs and their impact on TV advertising DVR Research Institute Management(2013) [email protected] , [email protected]
CRITICAL THINKING QUESTIONS
Do you agree with CBS that the DVR is a transitional technology? Yes. Because DVR was a transitional technology from Conventional TV to Time shift TV
Yes. Because 40 % of US households have DVR and that number is expected to grow
SUGGESTION Collaborative between DVR industry and Advertiser because TV industry need advertiser to increase their quality
https://en.wikipedia.org/wiki/Digital_video_recorder
http://www.businessdictionary.com/definition/digital-video-recorder-DVR.html
http://pantauiklan.blogspot.co.id/2014/01/mengapa-terjadi-penurunan-minat.html
http://instalasi-jaringan.com/apakah-dvr-itu-kegunaannya/
Modeling the Effects of Advertisement-Avoidance Technology on Advertisement-Supported Media, Wilbur C Kenneth, 2004
101 Advertising in the DVR Age, DVR Research Institute Management, 2013
REFERENCES