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) tom.schultz@DVRresearch.com , adam.zarrin@DVRresearch.com

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