As digital video recorders, such as TiVo devices, grow more prevalent, the old model of television commercial breaks becomes less relevant. Which is why, NBC partnering with TiVo to display interactive options during commercials, much like DirecTV used to, when it still used TiVo recorders, during pay-per-view programming commercials, is a major story for falling TV ad revenues. The problem is that people don't watch commercials on recorded programs, so the interactive commercial during live broadcasts is only a half-measure at best. I think the next couple of steps for the next generation of TV commercials is the "sponsored by" banner with the interactive menu option, and, unfortunately, mixing ads in with the menu displays. We tolerate the ads on our internet portals and free email services, so ads on DVR menus is the next logical step.
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