Originally posted by: AndrewR
Originally posted by: ultimatebob
Traditional TV advertising IS dying, though. DVR's are finally starting to catch on, and most people who have them are fast forwarding through the commerical breaks.
Why do you think that series are adding so many banner ads and product placements during the show now?
And how many people have them relative to the number of people with TV sets? I think the tendency within outfits like Wired is to assume that since THEY have DVRs and all THEIR FRIENDS have DVRs, well then EVERYONE has DVRs and is skipping commercials. In fact,
Gizmodo.com reports that DVR sales
declined 49% this year from Jan-Aug compared to sales from the same time period in 2005.
Then I found
this report which gives some interesting figures on the market penetration of different devices (dated 2005):
6% of all US households have a DVR, compared to the 87% with a VCR, 60% with a DVD console and 12% with Video on Demand
If only 60% of US households have a DVD player and that's painfully easy to use and cheap as dirt these days, how likely is it that a majority of US households are going to buy a DVR in the near future? The same article mentions that at the end of 2004, 3.5 million US households had a DVR. Double that and then add a few million more, and you're still talking under 10 million. I'd say the market for TV advertising is still a very strong one.