Contextual advertising works…
http://adage.com/mediaworks/article?article_id=125890
This is really interesting. Three-year study compares buying patterns of people with DVR’s (TiVo is mentioned in particular) to those of people without.
People with TiVo’s bought five percent less of new products than people without, and 20% of all brands lost volume in DVR households.
Food products took a big hit:
Among IRI’s top-selling Pacesetters … All of the impact was on food brands, which allocated more of their budgets to TV and saw new-product trial volume decline 7.5%
This was my favorite observation from the story:
…Research has shown that when ads mesh with a program’s subject matter, e.g., do-it-yourself fare on HGTV, they tend to get fast-forwarded less often.
Go figure – if I’m watching a home-improvement show, I’m likely to watch an ad for the new Black & Decker whatsit. If I’m watching The Office, I’m likely to fast-forward over an ad for Hot Pockets. For the first time, I understand how Google’s foray into TV advertising might be able to succeed, by making it possible to dice ad placement logic more finely than this obvious cut.
It’s obvious from show content alone that advertising goes with home-improvement television like Gorilla Glue goes with, well, anything. DVR usage patterns suggest that traditional entertainment programming may suffer badly if ad viewing becomes a uniform choice
