TiVo (NASDAQ: TIVO) recently announced plans to offer a television-based advertising search service, which would use the company’s DVR (digital video recorder) product’s TV search capabilities to deliver targeted advertising to subscribers who want to view particular advertising categories. On the heels of this news, the company’s CEO Tom Rogers elaborated on TiVo’s strategy toward advertising last week at the Digital Entertainment & Media Expo (DEMXPO), held Nov. 30-Dec. 1 at the Hyatt Regency Century Plaza in Los Angeles.
Leading media and advertising agencies including Interpublic Media, OMD, Starcom Mediavest Group and The Richards Group, as well as Comcast Spotlight, the advertising sales division of Comcast Cable, have worked with TiVo on the development of this new ad search function. Agency R&D techniques will help determine relevant categories of interest, such as automotive, travel, telecommunications, and consumer packaged goods, as well as to arrive at relevant pricing models.
During his DEMXPO presentation, Rogers asserted that there are numerous changes occurring in the public perception of TiVo, as well as the digital video recorder (DVR) space as a whole. Among those is acceptance that skipping is here to stay, and a realization that skipping could offer something to advertising. He related that TiVo’s “more advertising friendly” focus could provide new way to reach viewers, tying TiVo functions with consumer viewing habits.
Rogers suggested that the pause feature is “key to advertising initiatives in DVR platforms– you can pause and you don’t miss anything. You can spend 30 seconds or 10 minutes [with an advertisement] and not disrupt viewing.”
With these and other DVR user trends in mind, Roger suggested that TiVo’s new advertising search function, which will be implemented in ’06, “is something we do think consumers will care about. It’s a tool for consumers that will not interfere with their viewing of programs…It will allow viewers to proactively use advertising.”
Looking ahead, Rogers suggested that audience measurement and accountability is becoming more important, and DVRs such as TiVo can offer that service. “Television advertising will increasingly be subjected to [comparisons to measurement features] already available on the Internet. We are focused on taking what Goggle and Yahoo have done and bringing it to TV.
“We are looking to further differentiate TiVo from the rest of the DVRs,” Rogers concluded. “We have incredible depth in engineering talent and have begun to turn customers on to simple, elegant opportunities.”
