PVRs Could Transform The Media Planning Process
The rising uptake of personal video recorders (PVRs) such as Sky Plus and TiVo could transform the media planning and buying process, even by as early as 2006, according to new research carried out by media agency PHD.
PHD’s analysis of the emerging behaviour of Sky Plus users shows that certain programmes are much more likely to be recorded than others. Soap operas and major drama series are the most commonly captured programmes, whereas sport, daytime television and reality-TV shows do not lend themselves to being recorded.
These developments could cause a major shift in the media planning process, as the premium for agencies buying advertising space would be in programmes that were more commonly watched live. Conversely, value of programmes that are more likely to be recorded may diminish as viewers are more likely to skip through the ad breaks.
TiVo, a PVR unit manufacturer, last year claimed that between 60% and 70% of advertisements are being screened out by viewers who own PVR equipment (see Ad Avoidance As High As 80% For PVR Users). Research from the US, by Jack Myers, also found that the majority of PVR viewers often avoid the commercials (see INSIGHTanalysis: PVR Users Regularly Avoid Ads).
“The classic centre break in Coronation Street just won’t be justifiable anymore. It will become a recorded programme and the commercial breaks will therefore be fast forwarded. Advertisers and media agencies like guarantees and this research provides another reason for them to be nervous that their television spot isn’t delivering the way it’s supposed to,” says Justin Gibbons, director of strategic services at PHD.
Gibbons predicts that the increasing uptake of PVRs will lead to a shift away from conventional airtime spots. He suggests that the new commercial opportunities are going to be in sponsorship, advertiser enhanced programming and in a different style of commercial messaging.
However, the PHD research showed that people do not fast-forward through all of the ad breaks all of the time and the impact of PVRs on television advertising is not expected to become commercially significant for at least the next couple of years.
Gibbons said: “This won’t happen overnight and we’re not expecting to see real changes until 2006. Even then it would be difficult to argue with ITV about a spot in Coronation Street when only 10% or 20% of their customers have got Sky Plus and only a fraction of them are fast forwarding.”
The effect of PVRs on television advertising is very much dependent on the rate of uptake over the next few years. In October 2003 Sky had approximately 150,000 subscribers to its Sky Plus service (see BSkyB Doubles Profit As 7m Subs Target Is Hit). However, it has unleashed a £20 million advertising drive to increase penetration. PHD predicts that there will be a million Sky+ subscribers by 2005.
Yankee Group research in the US shows that the rate of PVR uptake there is rising. It says that broadcasters and advertisers will have to sit up and take notice when, in mid-to-late 2005, the number of PVR subscriptions reaches 10 million. By 2006, there will be over 19 million PVR households in the States, according to Yankee Group (see PVRs Threaten 30-Second Ads, Says Yankee Group).
Broadcasters, however, are sceptical. Many claim that PVRs are having far less impact on viewing habits than was once predicted. Speaking at last year’s Edinburgh International Television Festival, ITV’s marketing and commercial director, Jim Hytner, said: “The proposition that the audience will prefer to record every single show and watch it later, rather then watch it when the fat controllers present it to them, is pure bollocks.”