DVRs are coming

Some new data points last week on the inexorable march of DVRs into US households.

I am obviously quite focused on brand advertising (the majority of which is still done on TV), so I have been closely following DVR penetration and its impact on advertising ever since I got my own DVR in 2005.  At that point, my TV consumption increased significantly (taking share from DVDs), but at the same time I stopped watching commercials.  I would estimate I only watch 10% of the commercials embedded in the TV content that I consume.  So more TV, but largely free TV; the only one getting compensated for the content I consume is Comcast.  Great news for them, but not so great news for the (largely brand) advertisers who paid top dollar for my attention and whose advertising I saw at 20X its intended speed, on a different day/daypart, with no sound.   So much for “sight, sound and motion”.

I am not alone.  As I have written earlier, DVR penetration of all US households is now >30% and going to 80% by 2016.  Articles like this one in MediaWeek make it seem like the level of conversation / realization is increasing.  However, when we consider the current market projections and new, penetration-driving technologies like “Virtual” DVR, it’s hard not to feel like the brand advertising community as a whole should be a bit more concerned and thus a bit more active in its search for TV alternatives.

Stay tuned.

About Andy Atherton
I am currently an SVP at AppNexus. I previously spent four years as COO and cofounder of Brand.net, a pioneer in programmatic reserve technology and leading digital media buying solution for top brands. Prior to Brand.net, I was Vice President of Pricing and Yield Management for Yahoo!, responsible for maximizing monetization of a global portfolio of display inventory worth $2B annually. Beginning in 2002, I created, developed and globalized Yahoo’s PYM function over a period of five years. Prior to Yahoo!, I was president and cofounder of Optivo, a venture-backed start-up that developed price optimization software for e-commerce retailers. More on LinkedIn...

3 Responses to DVRs are coming

  1. Pingback: Simplifying the Narrative « Brand.net

  2. Pingback: News of the Day | in.media | online advertising news, trends & industry talk

  3. Pingback: DVRs will cut TV advertising in half over the next 5 years « Brand.net

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: