The new forums will be named Coin Return (based on the most recent vote)! You can check on the status and timeline of the transition to the new forums here.
The Guiding Principles and New Rules document is now in effect.

Digital TV and Advertising

NakedZerglingNakedZergling A more apocalyptic post apocalypse Portland OregonRegistered User regular
edited December 2007 in Debate and/or Discourse
So i was watching Blue Planet when the old lady asks me to do some dishes. "when this show is done i'll do it." was the response i gave. The one that has served me so well in the past. Naturally she picks up the controller and records the show and my excuse is void.

Now i've only had digital cable for a year or so, same with the dvr feature. I have noticed that like most people with it, i just set the box up to record what i want to watch, and watch it when i have time. The best part is forwarding through the commercials. I realize that i see commercials less and less (on tv anyway), and with technology getting better and better we can almost eliminate them.

This has created a huge surge on product placement within shows and even some shows being sponsored solely by one or two companies. (like nissan in heroes)

So what i was wondering while scrubbing the dishes was this. Might there be a time when Companies just start buying channels and running only their ads? The idea isn't too bad. "the Coke channle".....Imagine watching whole episodes of say "the Office" with 6 min of coke ads or whatnot between episodes instead 4 commercial breaks during one.

Could this idea even work?

NakedZergling on

Posts

  • KalkinoKalkino Buttons Londres Registered User regular
    edited December 2007
    OR it could be even worse - the actual show seemlessly turns into an advertisment - one minute you are watching Hero and Peter kissing, the next minute they meet a new mutant who's power is the Pepsi Challenge

    Kalkino on
    Freedom for the Northern Isles!
  • ege02ege02 __BANNED USERS regular
    edited December 2007
    It doesn't matter if people don't skip the ads.

    Ask yourself this question: do you find yourself more likely to buy a Nissan after seeing it on Heroes?

    Does anyone?

    I think the effect that sort of thing creates is largely the opposite: people are annoyed at the intrusion, i.e. the intrusive way the product is marketed.

    The fact is that TV advertising is extremely inefficient and ineffective and it is getting more so everyday. It's just like spam; either you ignore it by changing the channel, or you filter it out by recording the show and fast-forwarding during the commercials.

    Now, compare this to context-based advertising. You do a search on Google with the keyword "holiday resorts in Hawaii" and on the side comes up three or four ads with links to travel sites. You're far more likely to click those types of ads than, say, those annoying flashing banner ads that claim you're the 10,000th visitor and won.

    In the future I expect TV commercials to mostly disappear.

    ege02 on
  • edited December 2007
    This content has been removed.

  • ege02ege02 __BANNED USERS regular
    edited December 2007
    TV advertising is very ineffective till you're in the market for something being advertised. Then you don't think "fuck Nissian" - 3 days later you wander over to their website and maybe go check out a dealership.

    In this way it is almost exactly like spam though - they only need a few hits because they hit everyone.

    No, they need more hits than "a few" because airtime on TV is extremely expensive.

    Otherwise it's just inefficient as shit, and a complete loss of money when you factor in the opportunity cost.

    ege02 on
  • NakedZerglingNakedZergling A more apocalyptic post apocalypse Portland OregonRegistered User regular
    edited December 2007
    I think electrucity has a very good point. Loan commercials, banking stuff..they all seem like bullshit unless you're looking for that item, then you pay attention. Thats a good point.
    I'm getting married in october and you start to notice stuff for honeymoons or wedding even places.

    NakedZergling on
  • KalkinoKalkino Buttons Londres Registered User regular
    edited December 2007
    Sometimes I get the impession TV advertising is a scattershot + price thing - like over the last few days I've been going to bed late - 2-3am (late for me anyway) and after about 11 a lot of kitchen and bedroom fitting ads start up.

    Then in other situations I get a little worried - when I was off work for a bit I watched some daytime TV and the amount of loan/credit card/loan consolidation/price comparison website advertising was simply amazing

    Kalkino on
    Freedom for the Northern Isles!
  • ege02ege02 __BANNED USERS regular
    edited December 2007
    I think electrucity has a very good point. Loan commercials, banking stuff..they all seem like bullshit unless you're looking for that item, then you pay attention. Thats a good point.
    I'm getting married in october and you start to notice stuff for honeymoons or wedding even places.

    Marketers are starting to realize that instead of spamming the masses and hoping to get a few hits, it makes far more sense to market your product to people that you know are looking for it, because it costs far, far less, and you get more hits per ad.

    ege02 on
  • Svelte PenguinSvelte Penguin Registered User regular
    edited December 2007
    But half the battle is just name recognition. People are more likely to buy things if they have heard of the company before, it makes them think of the brand as more reputable.

    Svelte Penguin on
  • CycophantCycophant Registered User regular
    edited December 2007
    But half the battle is just name recognition. People are more likely to buy things if they have heard of the company before, it makes them think of the brand as more reputable.

    Bingo.

    I used to think like ege, until I had a group of marketers explain it better to me.

    Although there is movement in the industry towards much more targeted advertising that gets much more "bang for their buck" so to speak, mass-scale advertising is still a necessity. Mostly because a wide majority of the world's brand names need to constantly be in the eye of the public in order to retain their brand awareness.

    Take Nissan as an example, simply because it was used earlier. If you stopped seeing Nissan ads everywhere, you'd probably think the company fell off the face of the earth. So when it came time to actually purchase a car, you may not even consider them, because you weren't exposed to the name at all in the last few years. They can try and target you once you're looking for a car all they want, but for many markets, it just won't work if you haven't been exposed to the brand at all for some time.

    People tend to forget that the sole purpose of advertising isn't to get you to "run out and buy their product" anymore. It's much much more than that nowadays.

    Cycophant on
    sig.gif
  • ÆthelredÆthelred Registered User regular
    edited December 2007
    When a person goes to buy a product, they will usually buy the brand they've seen on TV. Advertising works.

    Æthelred on
    pokes: 1505 8032 8399
  • ege02ege02 __BANNED USERS regular
    edited December 2007
    Cycophant wrote: »
    But half the battle is just name recognition. People are more likely to buy things if they have heard of the company before, it makes them think of the brand as more reputable.

    Bingo.

    I used to think like ege, until I had a group of marketers explain it better to me.

    Although there is movement in the industry towards much more targeted advertising that gets much more "bang for their buck" so to speak, mass-scale advertising is still a necessity. Mostly because a wide majority of the world's brand names need to constantly be in the eye of the public in order to retain their brand awareness.

    Take Nissan as an example, simply because it was used earlier. If you stopped seeing Nissan ads everywhere, you'd probably think the company fell off the face of the earth. So when it came time to actually purchase a car, you may not even consider them, because you weren't exposed to the name at all in the last few years. They can try and target you once you're looking for a car all they want, but for many markets, it just won't work if you haven't been exposed to the brand at all for some time.

    People tend to forget that the sole purpose of advertising isn't to get you to "run out and buy their product" anymore. It's much much more than that nowadays.

    It's not about whether or not advertising, when watched, is effective.

    It's about the fact that most people don't watch TV ads anymore. They change the channel, they fast-forward, they just tune themselves out.

    Here are a some articles and blog posts talking about why TV advertising is dying.

    Is Advertising Dead?, by Guy Kawasaki

    A blog post about monopolies and traditional marketing, by Seth Godin

    Excerpt:
    I had coffee with the executive producer of a network news show last week. He told me that every year, in addition to getting smaller in size, his audience, on average, ages almost a year. The people he needs in order to maintain his monopoly are finding something else to do with their time.

    Need more proof? Take a look at Tivo and Replay. These digital VCRs have tiny audiences (but expect a bunch to sell this Christmas). It's easy to dismiss them as toys for the digerati. Easy, except for one fact: 80% of the people who use one of these devices skip all of the commercials during the shows they watch. ALL of them! Imagine. So much for the business model of the most powerful medium of all time.

    One of Seth's presentations.

    Youtube Up, TV Down

    It's pretty obvious that TV advertising is not as effective as it used to be, and it's only getting less so everyday.
    When a person goes to buy a product, they will usually buy the brand they've seen on TV. Advertising works.

    People don't buy BMW because they see the ads on TV. They buy BMW because BMW makes good cars.

    Sure, on average people may lean towards brands they see on TV, but the fact is, they no longer watch those ads.

    ege02 on
  • Rhan9Rhan9 Registered User regular
    edited December 2007
    Even without Tivos and other digital TV systems that allow recording programs and fastforwarding the commercials, I wouldn't see the commercials on TV. Reason? Before the ability to record and fastforward over them with the ease we have today, I just concentrated on something else during the commercial break. Go to toilet, grab something to drink, whatever. Even when sitting there, watching the TV, I'd just semi-unconsciously filter the commercials, and afterwards couldn't recall what was advertised. I'm not sure how common such a tendency to just tune out is, but such advertising really grabs the attention of the watcher/listener if the person in question is already interested in the good being offered.

    I'm not sure what the situation is at the moment though, as I haven't really watched TV for a couple of years. I've migrated to just getting dvd-sets of series I want to see, as it removes the wait and commercials and so forth.

    Large-scale advertising does have an effect, but I think that it's not as significant as advertisers might think. With markets where the goods compete mainly with brands, like cars, the advertising is needed simply for brand exposure. As said already in this thread, the inability to keep the masses aware of the brand's existence would hurt their sales.

    Rhan9 on
  • GoatmonGoatmon Companion of Kess Registered User regular
    edited December 2007
    ege02 wrote: »
    In the future I expect TV commercials to mostly disappear.

    Don't networks rely very heavily on sponsors to fund their shows?

    Goatmon on
    Switch Friend Code: SW-6680-6709-4204


  • ege02ege02 __BANNED USERS regular
    edited December 2007
    Goatmon wrote: »
    ege02 wrote: »
    In the future I expect TV commercials to mostly disappear.

    Don't networks rely very heavily on sponsors to fund their shows?

    They do. That's why TiVo et al were under legal attack by TV networks. People not watching the commercials profoundly hurt their ad rates.

    But that doesn't necessarily mean networks will disappear due to lack of funding. I expect the smart ones to find other ways, perhaps by using the Internet to promote television.

    Something like Google suggested.

    ege02 on
  • Svelte PenguinSvelte Penguin Registered User regular
    edited December 2007
    All I know is that I hate when they run the same company's ads 3 times every commercial break. Most of the sponsored online stuff does this. I couldn't listen to an online radio station I found because every 10 minutes they interrupted with the same commercial. Even though it was less commercials than usual, I couldn't stand hearing the same thing. It was like a commercial alarm. I actually could not use the product at all because the advertising drove me insane. It's all too common in online stuff.

    Marketers know their advertising is getting less effective due to oversaturation. They have been saying that since at least the 1980s. So far, it just means people spend even more money on marketing. Although nontraditional viral marketing has kind of come into being, companies still spend rising amountsof cash on traditional campaigns. So I don't personally see anything changing anytime soon.

    Svelte Penguin on
  • Rabid_LlamaRabid_Llama Registered User regular
    edited December 2007
    I read an article about this somewhere that said that marketers don't actually lose out due to DVRs and commercial skipping because people typically rewatch the shows they record later and, get this, they don't skip the commercials. I mean, that is kind of a major part of the DVR but it makes sense, I don't want to have to fast forward through the commercials every time. Sometimes it is just easier to let them roll than to fast forward past where the show begins again and rewind to a better spot and all that mess. I know my mother, who isn't really all that good with technology, knows how to record and watch shows but never fast forwards through the commercials.

    I wish I could dig up that article, I think it was on slashdot a couple months ago. It was pretty interesting.

    Rabid_Llama on
    /sig
    The+Rabid+Llama.png
Sign In or Register to comment.