More Tivo news on commercials
11-17-04, 10:37 AM
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11-17-04, 10:43 AM
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TiVo Will No Longer Skip Past Advertisers
Wed Nov 17, 7:55 AM ET Top Stories - Los Angeles Times
By Gina Piccalo Times Staff Writer
When it debuted in 1999, TiVo (news - web sites) revolutionized the TV experience by wresting control of screen time from advertisers, allowing viewers to record shows and skip commercials. TiVo's slogan said it all: "TV your way."
Behind the scenes, though, TiVo was courting advertisers, selling inroads to a universe most customers saw as commercial-free. The result is a groundbreaking new business strategy, developed with more than 30 of the nation's largest advertisers, that in key ways circumvents the very technology that made TiVo famous.
By March, TiVo viewers will see "billboards," or small logos, popping up over TV commercials as they fast-forward through them, offering contest entries, giveaways or links to other ads. If a viewer "opts in" to the ad, their contact information will be downloaded to that advertiser exclusively and by permission only so even more direct marketing can take place.
By late 2005, TiVo expects to roll out "couch commerce," a system that enables viewers to purchase products and participate in surveys using their remote controls.
Perhaps even more significant is TiVo's new role in market research. As viewers watch, TiVo records their collective habits second by second and sells that information to advertisers and networks. (It was TiVo that quantified the effect of Janet Jackson's Super Bowl "wardrobe malfunction," reporting a 180% increase in the number of replays reported by viewers.)
For advertisers it's an extraordinary boon, a quicker and more effective way than they've ever had of measuring the effects of their TV commercials.
For viewers, TiVo's new strategy means the technology famously christened "God's machine" by Federal Communications Commission (news - web sites) Chairman Michael K. Powell is rapidly becoming a marketer's best friend, proving that try as they might, consumers cannot hide from marketing.
"TiVo looked like it was going to be the weapon of mass destruction of Madison Avenue," says Robert Thompson, Syracuse University professor of television and pop culture. "However, we knew that the [TV] spot ad would not go gently into the night, and this is the next battle strategy."
The shift underscores what industry observers have been saying since TiVo started that TV advertising and programming must change dramatically to survive.
These are anxious times for marketers, who are faced with commercial-busting technology that's evolving faster than they can keep up. Broadcast-ready cellphones, hyper-real video games, interactive DVDs and the Internet give consumers the on-demand, often commercial-free entertainment they crave.
Traditional network television viewing, by comparison, can seem antiquated. The number of American households with a TiVo or TiVo-like recording system is expected to increase from 5% to 41% in five years, according to Forrester Research, which studies technology's effect on business.
For this reason, ad agency executives who initially ignored TiVo and its digital video recorder technology, or DVR, are now praising it as an industry savior.
"I look at TiVo being first generation of the TV advertising of the future," says Tim Hanlon, a vice president at Starcom MediaVest Group, one of the world's largest media-buying companies, with clients including General Motors Corp., Procter & Gamble Co. and Best Buy Co. "There's a whole witch's brew of change coming to the linear television form."
But what about TiVo's devotees, those folks who send the company fan mail and photos of their pets posed with TiVo boxes, and act as missionaries, converting their friends to the technology?
Some say they don't mind a little pop-up advertising just so long as they can fast-forward through it because it could help keep TiVo in business. (A September report from Forrester shows that DVR owners typically fast-forward through 92% of commercials.)
Others are wary of the changes and concerned the company's priorities may be shifting away from the consumer.
"A company can get too big for its britches, you know?" says Bill Calogero, a Chicago computer business analyst and TiVo subscriber since 1999. "I just don't want them to interfere with the experience. If it isn't broke, don't fix it."
Yet from its inception, TiVo engineered its system with advertisers and networks in mind. While competitor ReplayTV (news - web sites) had allowed its subscribers to skip commercials entirely TiVo restricted its fast-forward capabilities so viewers could still see the commercial, albeit eight times faster than intended. (ReplayTV last year was forced by litigious studios and networks to adopt a more TiVo-like system.)
TiVo also sold space on its main menu to advertisers as a venue for commercials that ran longer than the usual 30- or 60-second spots. And the company developed "tagging" technology as a way for networks to advertise TV shows by embedding a green thumbs-up sign in the corner of the screen during a show's promo, reminding the viewer to record it. Advertisers saw tagging as an opportunity and jumped at it.
By 2002, TiVo was selling "tag" time to Lexus and Best Buy. The thumbs-up icons appeared during live commercials, inviting the viewer to "click here" for a chance to enter a contest, receive a DVD or brochure or watch a glossy, long-form commercial.
Over time, General Motors, Nissan Motor Co., Coca-Cola Co., Walt Disney World and Royal Caribbean International cruise line paid their way into the program. And all the while, TiVo recorded viewer response.
The tags proved so lucrative for TiVo, and so popular with viewers, that the Alviso, Calif.-based company expanded their capabilities significantly. They created "billboards," more robust tags that are larger and promote greater brand awareness with logos and text.
Until now, the new technology has been relatively subtle and not widely seen; by spring, it will be hard for TiVo users to miss. (The technology is part of the software provided to all TiVo users.)
"The message we really want to get across," says Davina Kent, TiVo's advertising and research sales manager, "is that we now have a dedicated road map for advertising."
There are TiVo users who say that as long as the new technology doesn't interfere with their ability to fast-forward through a commercial, they're happy to ignore it. It's the timesaving apparatus they say they cherish most.
"To be able to see things when I want to see them is the real advantage," says L.A. radio promotion executive Jennifer Sperandeo.
Other TiVo users say they hope the new partnerships prove lucrative enough to keep the company afloat. Five years after its launch, TiVo still hasn't turned a profit and doesn't expect to until January 2006. (Kent says the advertising revenue will probably bring down the cost of TiVo to its 2 million subscribers currently $12.95 a month.)
And in the year since Rupert Murdoch's News Corp. took control of satellite operator DirecTV Group Inc., TiVo's largest source of customers, the future of that relationship has grown increasingly uncertain.
"I want them to be successful," says Gary Beck of Long Beach, who bought his first TiVo in 1999 and now has three. "They have clawed their way up. As long as they're not giving out personal data, I don't mind."
Some observers, however, interpret TiVo's new ad campaign as a profound change in its ideology that won't sit well with devotees.
Matt Haughey, whose Portland, Ore.-based PVRblog.com gets 10,000 hits a day (PVR is short for personal video recorder), says he wasn't surprised by the shift. After last year's lawsuit against ReplayTV and TiVo's hiring of NBC executive Martin Yudkovitz as president, he figured the glorious "David versus Goliath" days, when TiVo was the best defense against corporate tyranny, were numbered.
"My first impulse is, this is going to start the slippery slope," Haughey says.
"TiVo is dependent on a psychology," says Neal Gabler, a senior fellow at the Norman Lear Center at USC Annenberg and author of "Life the Movie: How Entertainment Conquered Reality." "It is not just a technology. You don't want people to intrude in your life. That's the whole point of it to give you control of that mechanism . I think they're going to find themselves losing customers. I say this as a TiVo subscriber."
To Syracuse University's Thompson, the concept of interactive advertising interrupts the most relaxing aspect of watching TV. "People seem to forget that what we've loved about television so dearly is its abject passivity," he says. "That's why they call it couch potato. TV was so great because it wasn't interactive."
But TiVo research suggests that notion is out-of-date. Between 5% and 20% of TiVo viewers given the opportunity to "participate" in an ad either by clicking on a tag or by selecting a long-form commercial from a main menu take it.
That's because TiVo has done its homework and knows its customer, Kent says. The new ads intrigue viewers instead of annoy them. They pop up and disappear in a matter of seconds if the viewer isn't interested. "You'll never see TiVo roll out any kind of intrusive advertising," Kent says. "It's very core to our mission."
What remains to be seen is whether consumers will embrace this culture shift at TiVo.
"Watching [an ad] is one thing," TiVo loyalist Calogero says. "Interacting with it is something that the consumer is going to need a little more reassurance that their information isn't being sold. I mean, TiVo knows how many times I rewinded to see Janet Jackson's breast come up. How much more do they know about me?"
Wed Nov 17, 7:55 AM ET Top Stories - Los Angeles Times
By Gina Piccalo Times Staff Writer
When it debuted in 1999, TiVo (news - web sites) revolutionized the TV experience by wresting control of screen time from advertisers, allowing viewers to record shows and skip commercials. TiVo's slogan said it all: "TV your way."
Behind the scenes, though, TiVo was courting advertisers, selling inroads to a universe most customers saw as commercial-free. The result is a groundbreaking new business strategy, developed with more than 30 of the nation's largest advertisers, that in key ways circumvents the very technology that made TiVo famous.
By March, TiVo viewers will see "billboards," or small logos, popping up over TV commercials as they fast-forward through them, offering contest entries, giveaways or links to other ads. If a viewer "opts in" to the ad, their contact information will be downloaded to that advertiser exclusively and by permission only so even more direct marketing can take place.
By late 2005, TiVo expects to roll out "couch commerce," a system that enables viewers to purchase products and participate in surveys using their remote controls.
Perhaps even more significant is TiVo's new role in market research. As viewers watch, TiVo records their collective habits second by second and sells that information to advertisers and networks. (It was TiVo that quantified the effect of Janet Jackson's Super Bowl "wardrobe malfunction," reporting a 180% increase in the number of replays reported by viewers.)
For advertisers it's an extraordinary boon, a quicker and more effective way than they've ever had of measuring the effects of their TV commercials.
For viewers, TiVo's new strategy means the technology famously christened "God's machine" by Federal Communications Commission (news - web sites) Chairman Michael K. Powell is rapidly becoming a marketer's best friend, proving that try as they might, consumers cannot hide from marketing.
"TiVo looked like it was going to be the weapon of mass destruction of Madison Avenue," says Robert Thompson, Syracuse University professor of television and pop culture. "However, we knew that the [TV] spot ad would not go gently into the night, and this is the next battle strategy."
The shift underscores what industry observers have been saying since TiVo started that TV advertising and programming must change dramatically to survive.
These are anxious times for marketers, who are faced with commercial-busting technology that's evolving faster than they can keep up. Broadcast-ready cellphones, hyper-real video games, interactive DVDs and the Internet give consumers the on-demand, often commercial-free entertainment they crave.
Traditional network television viewing, by comparison, can seem antiquated. The number of American households with a TiVo or TiVo-like recording system is expected to increase from 5% to 41% in five years, according to Forrester Research, which studies technology's effect on business.
For this reason, ad agency executives who initially ignored TiVo and its digital video recorder technology, or DVR, are now praising it as an industry savior.
"I look at TiVo being first generation of the TV advertising of the future," says Tim Hanlon, a vice president at Starcom MediaVest Group, one of the world's largest media-buying companies, with clients including General Motors Corp., Procter & Gamble Co. and Best Buy Co. "There's a whole witch's brew of change coming to the linear television form."
But what about TiVo's devotees, those folks who send the company fan mail and photos of their pets posed with TiVo boxes, and act as missionaries, converting their friends to the technology?
Some say they don't mind a little pop-up advertising just so long as they can fast-forward through it because it could help keep TiVo in business. (A September report from Forrester shows that DVR owners typically fast-forward through 92% of commercials.)
Others are wary of the changes and concerned the company's priorities may be shifting away from the consumer.
"A company can get too big for its britches, you know?" says Bill Calogero, a Chicago computer business analyst and TiVo subscriber since 1999. "I just don't want them to interfere with the experience. If it isn't broke, don't fix it."
Yet from its inception, TiVo engineered its system with advertisers and networks in mind. While competitor ReplayTV (news - web sites) had allowed its subscribers to skip commercials entirely TiVo restricted its fast-forward capabilities so viewers could still see the commercial, albeit eight times faster than intended. (ReplayTV last year was forced by litigious studios and networks to adopt a more TiVo-like system.)
TiVo also sold space on its main menu to advertisers as a venue for commercials that ran longer than the usual 30- or 60-second spots. And the company developed "tagging" technology as a way for networks to advertise TV shows by embedding a green thumbs-up sign in the corner of the screen during a show's promo, reminding the viewer to record it. Advertisers saw tagging as an opportunity and jumped at it.
By 2002, TiVo was selling "tag" time to Lexus and Best Buy. The thumbs-up icons appeared during live commercials, inviting the viewer to "click here" for a chance to enter a contest, receive a DVD or brochure or watch a glossy, long-form commercial.
Over time, General Motors, Nissan Motor Co., Coca-Cola Co., Walt Disney World and Royal Caribbean International cruise line paid their way into the program. And all the while, TiVo recorded viewer response.
The tags proved so lucrative for TiVo, and so popular with viewers, that the Alviso, Calif.-based company expanded their capabilities significantly. They created "billboards," more robust tags that are larger and promote greater brand awareness with logos and text.
Until now, the new technology has been relatively subtle and not widely seen; by spring, it will be hard for TiVo users to miss. (The technology is part of the software provided to all TiVo users.)
"The message we really want to get across," says Davina Kent, TiVo's advertising and research sales manager, "is that we now have a dedicated road map for advertising."
There are TiVo users who say that as long as the new technology doesn't interfere with their ability to fast-forward through a commercial, they're happy to ignore it. It's the timesaving apparatus they say they cherish most.
"To be able to see things when I want to see them is the real advantage," says L.A. radio promotion executive Jennifer Sperandeo.
Other TiVo users say they hope the new partnerships prove lucrative enough to keep the company afloat. Five years after its launch, TiVo still hasn't turned a profit and doesn't expect to until January 2006. (Kent says the advertising revenue will probably bring down the cost of TiVo to its 2 million subscribers currently $12.95 a month.)
And in the year since Rupert Murdoch's News Corp. took control of satellite operator DirecTV Group Inc., TiVo's largest source of customers, the future of that relationship has grown increasingly uncertain.
"I want them to be successful," says Gary Beck of Long Beach, who bought his first TiVo in 1999 and now has three. "They have clawed their way up. As long as they're not giving out personal data, I don't mind."
Some observers, however, interpret TiVo's new ad campaign as a profound change in its ideology that won't sit well with devotees.
Matt Haughey, whose Portland, Ore.-based PVRblog.com gets 10,000 hits a day (PVR is short for personal video recorder), says he wasn't surprised by the shift. After last year's lawsuit against ReplayTV and TiVo's hiring of NBC executive Martin Yudkovitz as president, he figured the glorious "David versus Goliath" days, when TiVo was the best defense against corporate tyranny, were numbered.
"My first impulse is, this is going to start the slippery slope," Haughey says.
"TiVo is dependent on a psychology," says Neal Gabler, a senior fellow at the Norman Lear Center at USC Annenberg and author of "Life the Movie: How Entertainment Conquered Reality." "It is not just a technology. You don't want people to intrude in your life. That's the whole point of it to give you control of that mechanism . I think they're going to find themselves losing customers. I say this as a TiVo subscriber."
To Syracuse University's Thompson, the concept of interactive advertising interrupts the most relaxing aspect of watching TV. "People seem to forget that what we've loved about television so dearly is its abject passivity," he says. "That's why they call it couch potato. TV was so great because it wasn't interactive."
But TiVo research suggests that notion is out-of-date. Between 5% and 20% of TiVo viewers given the opportunity to "participate" in an ad either by clicking on a tag or by selecting a long-form commercial from a main menu take it.
That's because TiVo has done its homework and knows its customer, Kent says. The new ads intrigue viewers instead of annoy them. They pop up and disappear in a matter of seconds if the viewer isn't interested. "You'll never see TiVo roll out any kind of intrusive advertising," Kent says. "It's very core to our mission."
What remains to be seen is whether consumers will embrace this culture shift at TiVo.
"Watching [an ad] is one thing," TiVo loyalist Calogero says. "Interacting with it is something that the consumer is going to need a little more reassurance that their information isn't being sold. I mean, TiVo knows how many times I rewinded to see Janet Jackson's breast come up. How much more do they know about me?"
11-17-04, 11:26 AM
#5
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Originally posted by ChrisHicks
I wonder if this will hit the DTV units?
I wonder if this will hit the DTV units?
11-17-04, 11:33 AM
#6
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Since DTV doesn't even consider them TiVo's anymore and they have seperate/independent people working on the software, I would think DTV would have to come out with their own statement stating this before I would worry about it.
Between this and the previous PPV time limit story, Hollywood is continuing it's quest to slowly destroy DVRs.
Between this and the previous PPV time limit story, Hollywood is continuing it's quest to slowly destroy DVRs.
11-17-04, 12:12 PM
#8
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Originally posted by Red Dog
Great to have Replays!
Great to have Replays!
(ReplayTV last year was forced by litigious studios and networks to adopt a more TiVo-like system.)
11-17-04, 12:17 PM
#9
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I'm not really interested in a DVR until they make one completely independent of outside interference. I would just as soon have it be like a VCR that records on a hard drive instead of tapes. This just seals the deal for me. I suppose if it could download program listings it would be nice, but there has to be a do that as a one-way procedure.
11-17-04, 12:20 PM
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Thats two stories in the past month that suggest Tivo is looking more at pressure from outside sources, than paying attention to their customer base. I wonder how the 30-second-skip will affect this? Hard to display an ad if i just hit the 30-S-S 6 times.
A media center PC is looking better by the day.
A media center PC is looking better by the day.
11-17-04, 12:24 PM
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Originally posted by ClarkKentKY
Thats two stories in the past month that suggest Tivo is looking more at pressure from outside sources, than paying attention to their customer base. I wonder how the 30-second-skip will affect this? Hard to display an ad if i just hit the 30-S-S 6 times.
A media center PC is looking better by the day.
Thats two stories in the past month that suggest Tivo is looking more at pressure from outside sources, than paying attention to their customer base. I wonder how the 30-second-skip will affect this? Hard to display an ad if i just hit the 30-S-S 6 times.
A media center PC is looking better by the day.
11-17-04, 12:25 PM
#12
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Originally posted by DRG
I'm not really interested in a DVR until they make one completely independent of outside interference. I would just as soon have it be like a VCR that records on a hard drive instead of tapes. This just seals the deal for me. I suppose if it could download program listings it would be nice, but there has to be a do that as a one-way procedure.
I'm not really interested in a DVR until they make one completely independent of outside interference. I would just as soon have it be like a VCR that records on a hard drive instead of tapes. This just seals the deal for me. I suppose if it could download program listings it would be nice, but there has to be a do that as a one-way procedure.
kramdenfan: while watch a recorded program key in select-play-select-3-0-select. You'll have to do this again any time the Tivo reboots.
11-17-04, 12:27 PM
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Originally posted by Groucho
Yeah, they would never capitulate to the demands of advertisers:
Yeah, they would never capitulate to the demands of advertisers:
Yeah - but they didn't change the way the Quick-Skip, FF, and Commercial Advance work on units already purchased.
11-17-04, 12:45 PM
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Originally posted by kramdenfan
Good point, Clark. On a side note, how do you set up the 30ss button? That's one of the shortcuts, right?
Good point, Clark. On a side note, how do you set up the 30ss button? That's one of the shortcuts, right?
Press: Select, Play, Select, 3, 0, Select
You'll hear a dingdingding if you did it right. If not, do it again. I wouldn't be able to live without 30SS, the autocorrection on the fastforwarding drives me nuts.
11-17-04, 12:45 PM
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Originally posted by Groucho
kramdenfan: while watch a recorded program key in select-play-select-3-0-select. You'll have to do this again any time the Tivo reboots.
kramdenfan: while watch a recorded program key in select-play-select-3-0-select. You'll have to do this again any time the Tivo reboots.
11-17-04, 01:04 PM
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Hmm . . .maybe I got a Prismiq just in time (will have to share after Thanksgiving if I actually got it to work)
11-17-04, 01:24 PM
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Originally posted by kramdenfan
Thanks Groucho and Clark! Which key then becomes the 30 sec skip button?
Thanks Groucho and Clark! Which key then becomes the 30 sec skip button?
11-17-04, 01:35 PM
#19
man, that's sweet. i didn't even know we had that option.
So then how can you set the button to go to the end of the program again? i don't use it that often, but i'm wondering.
So then how can you set the button to go to the end of the program again? i don't use it that often, but i'm wondering.
11-17-04, 01:36 PM
#20
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Wait, am I interpreting this wrong? They are going to still allow the commercial FF feature, but just put ads that pop up over the top of the fast forwarded material, right? If so, that doesn't so that bad.
11-17-04, 02:11 PM
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Originally posted by Deftones, Esq
Wait, am I interpreting this wrong? They are going to still allow the commercial FF feature, but just put ads that pop up over the top of the fast forwarded material, right? If so, that doesn't so that bad.
Wait, am I interpreting this wrong? They are going to still allow the commercial FF feature, but just put ads that pop up over the top of the fast forwarded material, right? If so, that doesn't so that bad.
11-17-04, 03:00 PM
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Originally posted by Big Boy Laroux
man, that's sweet. i didn't even know we had that option.
So then how can you set the button to go to the end of the program again? i don't use it that often, but i'm wondering.
man, that's sweet. i didn't even know we had that option.
So then how can you set the button to go to the end of the program again? i don't use it that often, but i'm wondering.
Originally posted by Deftones, Esq
Wait, am I interpreting this wrong? They are going to still allow the commercial FF feature, but just put ads that pop up over the top of the fast forwarded material, right? If so, that doesn't so that bad.
Wait, am I interpreting this wrong? They are going to still allow the commercial FF feature, but just put ads that pop up over the top of the fast forwarded material, right? If so, that doesn't so that bad.
11-17-04, 03:04 PM
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Originally posted by Mopower
I was fast forwarding with my Replay the other night and all of a sudden an full screen ad popped up telling me how much I could get another Replay for if I "acte now" and then it had a number. I just hit FF and it skipped it. Maybe Replays do this now but it's never happened to me before.
I was fast forwarding with my Replay the other night and all of a sudden an full screen ad popped up telling me how much I could get another Replay for if I "acte now" and then it had a number. I just hit FF and it skipped it. Maybe Replays do this now but it's never happened to me before.
You sure you didn't hit pause? That screen comes up when I hit pause. I never use FF with Replay anyhow. If you don't have one with commerical advance (or it isn't working right given the program), use Quick-Skip and Instant Replay. Far easier.
11-17-04, 03:20 PM
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Originally posted by Red Dog
You sure you didn't hit pause? That screen comes up when I hit pause. I never use FF with Replay anyhow. If you don't have one with commerical advance (or it isn't working right given the program), use Quick-Skip and Instant Replay. Far easier.
You sure you didn't hit pause? That screen comes up when I hit pause. I never use FF with Replay anyhow. If you don't have one with commerical advance (or it isn't working right given the program), use Quick-Skip and Instant Replay. Far easier.
11-17-04, 03:59 PM
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Some say they don't mind a little pop-up advertising just so long as they can fast-forward through it because it could help keep TiVo in business. (A September report from Forrester shows that DVR owners typically fast-forward through 92% of commercials.)