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Old 04-21-2005, 06:47 AM   #507 (permalink)
Cynthetiq
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Quote:
HEADLINE: CONSULTANT'S CORNER: THE TIVO EFFECT

BODY: Dem pollster Mark Mellman writes in The Hill, political
advertising "is based on a principle well known to con artists
worldwide: bait and switch." Viewers turn on their TVs to watch
"CSI" and "we pull a switch, giving them a political ad
instead." By '08, "if not before, technology is likely to
render that model obsolete." People may dislike the ads, "but
they use them. ... However, their impact has already begun to
wane." The options available with cable and satellite, as well
as the remote control and "our national penchant for
multitasking" have limited advertising's influence, but "these
changes are nothing compared to the 'big one' about to hit."
DVR's like TiVo "are taking off." One of the chief reasons
people buy DVRs is to skip commercials. Only 5% of households
have them now, but the phenomenon "is growing exponentially."
Estimates suggest that 40% of Americans will have DVRs in 4
years. "Empowered viewers can elude bait and switch. ... Many
will only see the political ads they want to watch, while
avoiding those we want them to see" (4/18).

In a follow up Mellman writes that advertisers are
responding to this challenge by focusing on "three dimensions:
ubiquity, quality and targeting." Ad makers are "struggling to
make their work interesting enough that viewers actually want to
see it. They are then putting it in every possible channel from
the Internet to word of mouth." And they're using "the superior
targeting capabilities of cable to focus their resources on
audiences most likely to yield results." BMW, the "most
celebrated success of the new marketing paradigm," spent $15M on
short films. Campaigns spend $18K or less on the average
positive spot. It's possible to make compelling films cheaply,
but "it doesn't happen very often." Also, product marketing
begins with an audience that wants a product and is interested
in the brand. "The parts of our base we need to mobilize ..
are, almost by definition, not interested in politics." In the
next 10 years, "we will likely see more changes in campaign
communication than we have in the past four decades combined"
(4/20).
Interesting statements about people arming themselves to not watch commercials and what the industry is pondering to do about that...
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