Death of TV ads

Growing penetration of personal and digital video recorders - which allow viewers to skip commercials - does not mean the death of TV advertising, but it is significant for the industry.

by Outlook, January 2006
Last Updated: 23 Jul 2013

Some 40% of US homes are expected to have a recorder by 2009, up from 8% in 2004, and a conservative prediction is that 9% of all commercials will be skipped by 2009.

However, real-time viewing remains an integral part of live sporting events and news. So the first and last ads in a commercial break and programme sponsorship are becoming more valuable. The broadcasting industry can make ad skipping more difficult, but genuinely live video-on-demand services - which can be packaged with tailored ads or which continue to display brand logos during fast-forwarding - are a more strategic response. The future will also be more interactive, whether on TV or broadband internet.

Source: Why TV advertising will never be the same
Theresa Wise Outlook, January 2006

Review by Steve Lodge

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