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Broadcasting And Society Essay

1918 words - 8 pages



What Impact is the DVR Having on the Advertisers? Steven Joseph Spayer November 12, 2014 BC 323 – Section IC2 – Broadcasting and Society Professor: Dr. Roger Sadler Western Illinois University



Introduction As technology changes in the communication environment, the impact is felt in the advertising field. In case advertisers fail to adapt as well as monitor the changes being witnessed field of technological communication, they face the threat of losing millions of funds, which they direct to ineffective advertising spending. The DVR (digital video recorder) is one of the major revolutions in technology that ...view middle of the document...

Thus, altering the behavior of the audience, which forces the advertising industry to implement changes to meet the market needs (Biagi, 2014). In this case, advertisers are forced to place their



adverts in places where their target audience can notice them easily. Advertisers who are not careful with respect to adapting and monitoring to technological changes in the communication environment risk losing significant amount of funds they spend on ineffective advertising (Neff, 2010). Advertisers need to adapt the DVR since it is one of the up-to-date innovation in technology. Although the penetration rate of the DVR in television households was approximately 5 percent in 2004, the rate doubled to 10 percent by the end of 2005. The DVR provides consumers with an option to skip advertisements, record, and store their favorite programs digitally (Neff, 2010). Moreover, they are capable of pausing live television as well as record programming one week in advance. They can also record a similar program each week for the entire season it is aired. These DVR features offer the consumers with more control and choice pertaining to their television experience (O'Guinn, Allen, & Semenik, 2011). The features, which advertisers show more concern is the ability of viewers to skip advertisements by fast-forwarding when they appear. In 2004, for instance, approximately 50 percent of DVR consumers stipulated that the fast-forwarding feature, especially through commercials was their favorite (Fortunato & Windels, 2008). Through the DVR’s future role with respect to the uncertainty issue in cable and broadcast television, most practitioners in the industry stipulate that devices with the ability to skip commercials will have severe impact on the present business model. The whole process is supported by advertising (Biagi, 2014). For instance, in 2006 approximately $5.5 billion advertising revenue was lost as users skipped commercials. Moreover, according to the American Advertising Federation, about 75 percent of senior advertising executives believed DVR will have serious implications on TV advertising, creating room for further development of



contemporary advertising formats (Fortunato & Windels, 2008). With the tremendous advancements being realized in DVR technology therefore, it is appropriate for the advertisers to device strategies that will help them identify both the threats and opportunities that this device presents. Review of Literature Any form of advertising situation offers both opportunities and threats in order for the advertisers to attain their goals. Communication goals through advertising aim at boosting recall of the brand, sales increase, and attaining the target audience. In order for the advertisers to develop effective advertising strategies, they should put into consideration two vital factors. These include considering communication strategies that can help them...

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