Saturday, May 11, 2013

Will increased DVR use cut into TV advertising revenue?

    How many of you don't have cable or use DVR when you do watch TV? Personally, I don't have cable. In our house, we have Hulu and Netflix.
    Many advertisers are concerned that with the increase in DVR use, commercials will become a thing of the past. I would have to agree.
   My little brother is five years old. He is very easily persuaded into wanting something that he sees on TV. One morning, I was sitting in the living room with him before school. A commercial came on for some sort of Lego set. It showed the Legos moving, flying, and attacking other Legos. While that is great for the Lego company, my little brother actually thought they if he got them, they would move, fly, and attack on their own.
    Since then, my little brother has stopped watching TV as much and started watching Netflix more. It used to be that every time I saw him, he would tell me about a new toy that he wanted or had to have for his birthday.  Now, it has decrease quite a bit since he started watching Netflix.
     I believe that the biggest lost in advertising revenue will be from young children. They are the easiest to persuade and I believe that children under the age of 10 are the most affected by the commercials on TV.
   Even in the picture to the right, both children are actively engaged in the commercial. Right after this commercial is completed, I bet one of them run to ask their parents for Trix. It is almost inevitable for children to want an item they see other kids playing with on TV.

      With all of that being said, it is destined for the TV advertising revenue to decrease due to all of the technology and new ways of watching TV. It's not just commercials anymore. Everything is changing, but I believe that advertisers will come up with a way to be one step ahead of the game and end up coming out on top once again.

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