May 2009
CBS has launched an unprecedented ad campaign promoting some of its shows in ahead of the so called ‘upfronts,’ a critical time for advertisers and their agencies that are poised to make media buys for next season. Literally billions of dollars are at stake during the upfronts–the time when commercial spots are ‘locked up’ by advertisers eager to get top positions.
Exactly what those top positions are, though, is not so clear. The growth in use of DVRs and the use of ‘C3’ ratings for media buying has created anxiety for many in the advertising industry. Confusion reigns.
A new study–Advertising in the DVR Age–offers some answers to points to potential new strategies for advertisers in a world where consumers, not networks, control viewing.
Before 2007, ratings for TV programs were used in negotiations between buyers and sellers of commercial time. Then, a compromise developed between advertisers and the cable stations and networks–the C3 rating. This rating only includes “real” viewers, across a three-day (78 hour) period and excludes fast-forwarders.
A newly released study by the DVR Research Institute shows that 55 percent of advertisers may decrease TV ad spending because of the impact of DVRs. However, many advertisers are confused about the C3 ratings and what they mean, resulting in faulty conclusions and lost opportunities.
Advertising in the DVR Age was released on May 1 and is based on survey responses from 200 top U.S. advertising executives, in-depth interviews with industry thought leaders and an analysis of past and future advertising industry trends.
DVRs are expected to decrease the reach of TV advertising by about 11 percent over the coming three years, according to this study.
“The effect of the shift away from program ratings and to commercial ratings essentially means that the financial burden of fast-forwarding is currently borne primarily by the networks and other sellers of TV advertising,” said Tom Schultz, managing director of the DVR Research Institute.
“Our study shows that advertisers are often not aware of this fact. There are also a number of simple strategies that advertisers could apply to adapt their advertising to the new DVR reality. Many advertisers are, however, unaware of these strategies and are going to walk into the upfront negotiations with the wrong assumptions.”
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