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PRESS RELEASE

28 JUL 2005

 

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Consumers Warming to Emerging Television Advertising Services
Survey finds consumers willing to trade viewing information to advertisers for the ability to fast-forward through commercials with a DVR

Nearly one-half (46%) of U.S. Internet consumers aged 13 and older are comfortable with viewer tracking and targeted advertising services if offered in conjunction with ad-skipping capabilities, according to Digital Entertainment: Changing Consumer Habits, a new study from Parks Associates.

This study, based on a survey of more than 2,000 consumers in U.S. households with Internet access, finds that consumers respond favorably to prospective television advertising services that track their viewing habits and produce targeted TV or e-mail ads if they also have the ability to fast-forward or skip regular TV commercials.

“This finding bodes well for TiVo and other PVR/DVR developers, who are hoping to balance viewers’ desire to have fewer commercials with the needs of broadcasters and advertisers to better measure their audience and drive more value from advertising,” said Kurt Scherf, vice president and principal analyst at Parks Associates. “The PVR/DVR platform has great potential to reshape how consumers interact with marketing messages and to improve the connections between advertisers and potential buyers.”

Scherf notes that the advertising lessons now emerging from the PVR/DVR space are also applicable to service providers as they seek to deploy more interactive IP video services, including offerings from both telcos and cable MSOs.

“Advertising revenues will be important for next-generation video providers in solidifying their services,” Scherf said. “In addition to building more robust ARPU and increasing customer satisfaction via on-demand applications, targeted advertising applications that better measure viewer preferences and then drive targeted purchases should be part and parcel of business model development with IP video services.”

Parks Associates’ Digital Entertainment: Changing Consumer Habits is an Internet-based survey instrument of 2,084 U.S. consumers in households with Internet access, including 270 teenagers between the ages of 13-17. This study analyzes consumer behavior for digital entertainment in the home, including product purchases, service subscriptions, use of home computers and the Internet for multimedia purposes, and interest in new Internet- and carrier-based services.

For additional information on Digital Entertainment: Changing Consumer Habits, visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, and home control systems and security.

Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, in partnership with the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS™ Conference series.

http://www.parksassociates.com | http://www.connectionsconference.com | http://www.connectionseurope.com | http://www.connectionsindustryinsights.com

 

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