I would like to write about advertising from the advertisers point of view. We are now living in a transitional time. The miltibilion-dollar business of TV advertising is changing. It has been now 10 years since the first DVRs came out for market experiment. Today “approximately 15-17% of television homes in the U.S. have DVR systems, either from a local cable or satellite system or from TiVo or Replay.” (www.nielsenmedia.com) I personally, need to say that it has been weeks since the last time I saw a full add on TV. I record all of my favorite shows, and I wait for them to be over just so I won’t have to see the adds. When DVR technology first came out, researchers were trying to predict how this new device would disrupt this billionaire business. (http://www.foxnews.com/story/0,2933,179125,00.html). We have not seen it go down yet, but the advertising industry only showed a small growth this year. According to Aaron Lewis at The Nielsen Company, “Cable TV set the pace for ad spending, climbing 8.4% over the same time period last year. Overall, television showed the most growth, representing four of the top five media categories. After a 6% dip through the first half of 2008, Network TV - thanks to a boost from Olympic broadcasts - worked its way back up to a slight growth (0.9%) through the third quarter.” (www.nielsenmedia.com).
Despite the growth, this percentage is very small compared to previous years, and I keep imagining that 10 years from now the percentage of people with DVRs at home will be the same as the percentage of people who have DVD players today. In this changing scenario, what new strategies can advertisers use to reach their target audience? Besides merchandising which is not a new technique. What ideas can we come up with, since we are the generation that will be dealing with this change?
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I think it's interesting how fast advertising must change in order to keep up with the changing environment. We must keep up with new mediums, new ways of thinking and new technologies. However, the techniques we use to advertise have never really changed. We always advertise the same way, because those ways always work. We just have to keep up and be flexible so we are able to change with every new medium. Advertising on television might not always be the best way to get people's attention anymore because so many people have DVR. Our generation needs to learn how to think outside the box, and keep coming up with new ideas. The world is always changing and so we need to keep up by always thinking of new ideas.
I think advertising is going to have to transition based on the upcoming technology. We've already seen this happening with social media, like Facebook ads and such, but advertisers must find a different channel besides TV. TV for our generation has become something we dictate. We don't have to watch ads. Advertisers must find new ways to "stealth" advertise things. They must advertise things without it appearing like advertising. It has to be something that our generation is already interested in or has a need for to make it truly compelling.
I agree with the above statements - that advertising has to continue to change. I think what advertising might have to do more is product placement in the television shows in order to get their point across. Plus, I agree with Emily that "stealth" advertising might be another way to go too.
In addition to the above statements, I believe that if companies are having a hard time integrating advertisements because of DVR and similar devices, they will start to pay the producers of these products to get their commercials to be part of the device or to stop consumers from skipping the commercials. Network television that post their shows make it impossible to avoid the ads, as you are not able to fast-forward through them. I believe we will soon see a similar trend in DVR.
I think it so interesting that we have invented a product that allows us to skip over pesky ads that we do not want to waste our time watching. I think it shows that maybe audiences are getting a little tired of the bombardment of advertisements. I think that the comments about product placement are absolutely correct. If viewers are going to completely skip over commercials, then they will have to be ok having a bombardment of product placement. I think advertisers are just going to have to sneak ads in wherever they can.
I think a lot of marketing and advertising will have to go digital. David Avalon's presentation on Digital Media this Thursday talked a lot about it. Society is changing--DVR is just one example. Society today is much more connected and tuned in to things via the internet, mobile phones/devices, etc. Since more and more people are involved in online activity, I think that digital marketing/advertising will become a mainstream form of tomorrow's marketing.
I think one good idea that I have heard some advertisers are taking since the advent of the DVR is that of product placement. If people won't watch your commercials, then place your ads inside the programming. It doesn't have to be blatant, just something to get the product into the consumer's mind. What if you saw your favorite TV couple spending an evening getting dinner at Red Lobster, and they enjoyed the food a lot. Might make you consider eating there sometime soon, right?
i dont even have a tv in my apartment, and only watch tv online anyway, so one thing ive noticed is that companies can afford to put their episodes online by forcing people to watch the same commercial multiple times throughout the episode. the brand probably pays more to get their commercial on there since its the only one that plays, and the viewer can't skip ahead of it.
I think product placement and stealth type advertising are great ways for the companies to advertise during tv shows. There are also a lot of sponsorships, and athlete endorsements during sporting events that are effective.
At the advertising seminar on thursday...the instructor talked about the "NEXT" generation of advertising. Advertising will continue to adapt and change to the new gadgets, and gizmos, a plenty, that the world creats. With Facebook, and Flicker, and the I-phone, and whatever other new inventions come...creative people will harness those inventions and figure out how to use them for advertising.
As future advertisers, I don't think we have to worry. Yes, TiVo and DVR systems have made it easy to completely skip over television ads, however, during the time that DVR systems have been around, there have been plenty of new advances in technology that allow new advertising opportunities. In my opinion, for every medium that fails to advertise effectively, another ten new mediums are invented. We'll be ok.
I also agree with past posts - I think that stealth advertising through new media will become more prominent.
I LOVE Tivo!!! I think it's the greatest invention since Cafe Rio's sweet pork salad! Personally, I feel very overwhelmed with advertisements and love saving time fast forwarding through them! What other way can you turn an hour program into 40-45 minutes? As previously mentioned, I think the only way to get people to watch advertisements is through product placement and stealth advertising. From experience I think people will prefer to save time doing others things, so they may have to be manipulated into it.
I agree with much of what's been said about new media. While it's true that innovative technologies have given us the option to screen our exposure to television advertising, other developments have created a plethora of new channels to reach a target market. Sure, 10 years ago you couldn't skip the ads during your favorite sitcom, but you also weren't checking Facebook 10 times daily (which happens to provide incredibly targeted and efficient advertising). The guest speaker from McCann Erickson SLC this past week talked about the 4 screen of advertising—the movie theatre, the television, the computer, and (now) the mobile device. He explained how new technologies exponentially increase the advertiser's ability to reach his/her potential clients. I agree with him; new technology and media will not eliminate, but rather multiply, channels of communication for advertisers.
I think that advertisers can start with something as small as plugs in TV shows and movies. I mean they already do that, for instance American Idol and Coca-Cola, the judges sit with giant glasses labeled "Coca-Cola" but i think people really pay attention to that. That goes along with the statements of stealth advertising. I think that as usual, out of home ads are great ways to be innovative, Transit Ads, Billboards. As some of us are advertisers, we need to come up with something different, something new in ways to reach our audiences, so guerrilla advertising is also a great way to advertise.
Ultimately advertising is going to have to focus on new ways to reach its public. As a business though, I don't think it has much to worry about. We all know that media is always changing. Advertising in turn will change with it. Even if television advertising falters, other areas will gain new strength. I would bet that we are about to see a large increase in out of the home ads as well as creative internet marketing. Pretty much exactly what David Avalon was saying last Thursday.
I think advertisers are very aware of the fact that DVRs are making it so less and less people are watching their ads of TV. It would be interesting to see the steps they are all ready taking. I think advertisers will use product placement more and learn how to utilize internet ads to a greater extent.
I have never been blessed with TiVo in my life. Sigh. But I would miss the commercials! Where would I be in my life without them! Here's how I think the adv. world will adapt- FIRST of all, events that are usually watched live such as the news and the superbowl will become the most expensive airtime. (yes, even MORE expensive airtime costs for the superbowl.) Secondly, the ads will become more and more in competition with one another, and only the ads that win competitions will be sought out and viewed.
I think that with the decline in relevance and effectiveness of TV advertising advertisers must be more creative and targeted in their messages to consumers. Stealth advertising is one way advertisers are overcoming this problem. Also, new media have emerged that can carry advertisements, such as Facebook and Myspace. Also, things that used to carry no specific advertisement or promotion of any product such as movies and sitcoms are now full of product placements.
I also think it's interesting how advertising has changed over time. Who determines how a product is advertised? I guess we do, the buyers, and the society that we have produced. I think it's crazy how you can't turn on the tv anymore without seeing some advertisement with a guy or girl with hardly any clothes on. We must be careful out there.
Let us not forget why ads are a part of television in the first place. For broadcast television advertisements are what keep the network channels free. If Tivos become as popular as predicted advertisers aren't the only ones who will be forced to adapt. If TV networks were to try and keep the signals free I think they might implement what is currently used when watching full episodes online; that is each episode is sponsored or brought to you by a certain product or company. It would look much more like underwriting credits than advertising.
No doubt that advertisers will need to modify their television strategies with greater numbers of Tivos, but sponsoring or Video On Demand (VOD) could likely include advertisements as customers are selecting their shows, allowing for specifically targeted advertising much like facebook.
I think this is a very interesting and relevant question. First, I think that product placement will increase in movies and television, but I think they'll have to be more blatant.(For example, Cast Away with Tom Hanks blatantly advertises FedEx...IRobot with Will Smith advertises All-Star shoes). Second, I think there will be an increase in advertisements that pop up before a Youtube video or a downloaded sit-com. Third, I think funny ads will be placed on Youtube that people will seek out for a good laugh. (Have we all see the "Improve your English" ad? "We're sinking. We're sinking." Classic.) Fourth, for tv specific ads, advertisers may resort back to a twenties/thirties style advertisement. To explain-- In the twenties and thirties advertisers "created elaborate story lines." I think that advertisers will turn to making more elaborate or "short film" style advertisements that would be "superbowl" quality advertisements. I could see tv ads becoming obsolete except on certain occasions when viewers tune in specifically to see their favorite advertisements (that last 3-5 minutess as opposed to 30 second). Viewrs can vote on their favorite ads in the manner of American Idol. Does that make sense? Basically I see tv ads becoming obsolete, but I can see a new "American Idol" style tv shows where advertisers present their best work and we vote for it. The ads would have story lines/plots, complex characters, etc. It would be a high-tech ad in the twenties/thirties style.
Well..those are my thoughts.
I think it is important to realize that advertising isn't just a 30 to 60 second commercial spot for TV. Although television may be one of the main medium for advertisers to get out their messages, it isn't the only, and there are other ways that have been used in order to reach a target audience. (i.e. print, billboards and transit ads, as well as product placement) With the birth of DVR technology however, I do agree that it may be time for advertisers to think outside of the "soap box" and find a new way to disperse advertisements in other mediums.
Some may suggest that its time to go digital, but I for one find it easier to "avoid" advertising by clicking the red X than fast-forwarding to get to the next scene of my sitcom.
Whatever the solution may be, Advertising has thus far kept up with the changes in society and I don't doubt its ability to continue.
Although the internet is continuing to grow I do not think TV is a dying form of media. People will always enjoy sitting down and watching TV because it requires absolutely no energy. So what I believe TV advertisers need to do is find a way to reinvent the wheel. This will be a difficult process because DVR's continue to grow in popularity. One answer to this dilemma is "story based advertising". I feel that by creating a commercial in the form of an engaging three piece show complete with product placement and advertisements. We can catch the viewers attention to stay present in between commercials and still be able to reach our target market.
I still feel like you get enough product placement in shows that in between commercials aren't necessarily needed. I do think the advertising industry needs to come up with new and clever ways to get people to pay attention to their products. People are sick of the same old boring methods of advertising.
Like most everyone has said, by using things that are being invented daily is how you get back into the lives of consumers. Product Placement anyone?
I am not sure what is to come in the future. As long as the person in front of the television screen, or magazine, cell phone, etc is not considered "the conquered," I am happy. I feel that way anytime I am interacting with NBC. First they offer episodes of shows on iTunes, then they take it off, and go with Amazon. Then the next year they have it streaming on their website and on places like hulu.com, but with ads. Then you can get episodes on iTunes again. I look forward to the day, when advertising becomes more creative, then feeling like I am being stalked by Nielsen number crunchers who turn advertising to feel so invasive.
Like you, I avoid watching TV advertisements during my favorite shows. Since I don't have a DVR in my apartment, I end up watching most of my shows online. While I don't have to suffer through 2-3 minutes of advertising, I do get to watch the SAME ad every commercial break. I think this is a step in the direction advertising will go. Fewer ads sending more direct messages to target TV audiences.
I think that advertisers will find a new way - commercials might die, but something will come up to replace them. With all of the new technologies that are coming out, it's impossible to block out every ad that comes your way in life.
Advertising is going digital. Forget television. Everything is shifting away from television. I watch some of my shows on the internet a few days after, when I have time. So, think digital. Everyone gets their music online, soon will be movies, and television too. Most forms of media will be accessible from your computer in a few years, if not already.
It is kind of interesting that we automatically associate advertising with TV commercials. Advertisements can be found everywhere. Advertising on the internet is becoming a major industry. So, while it may be more difficult now to advertise on TV, I feel that other forms of media are a way to fill the gaps that may be popping up now.
I kind of agree with what a few of other people have been saying. I think if history has taught us anything, it has shown us that advertising will find a way. If you look back to when television first came out, movie theaters were worried sick that they would be completely run out of business. I think as technology increases advertising does as well. Someone already mentioned that that a lot of people are watching shows in the internet where they are forced to watch that commercials which is a perfect example. I would not be worried about television at all. If anything newspapers are the companies that are really getting worried about the internet running them out of business.
Advertising is just as individual as each one of us. That's what makes it so compelling and why each of us can find personal truths in certain ads. Personal truths being a relative terms...understanding that in most cases an ad is just an ad. But in a special few (growing more everyday) advertising can be more. It can be logical art that can both drives sales and move the soul.
Advertising has always been on the brink of progression. It will evolve. Like everyone else has said, more & more consumers watch programs online and are exposed to adds through that medium. Advertising will find a way; it always has.
Our generation uses the new media a a lot more than older generations. I got onto NBC.com to watch the office a lot. I will go onto fox.com to watch the terminator show. I get all my news online as well. Advertisers need to be aware of this medium shift and advertise these websites.
I think that advertisers will have to adjust to the tivo technology because now consumers will only watch commercials if they really want to. Consumers no longer have to wait for their program to continue and sit through the ads. They can fast forward to their show. Advertisers will have to make more interesting, engaging, and humorous ads to survive in this new environment.
Advertisers have to keep up with the consumer. If they are able to avoid commercials on TV, they have to reach them some other way.
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