Wednesday, February 14, 2007

Future Trends in DRTV Advertising

The future of advertising seems to be heading towards:

A convergence of TV watching and the web, where consumers will be able to order directly off their TV by clicking icons.

A blurring of the lines between direct response television advertising and programming.

Consumers having greater control over access to programming and commercials.

The current advertising model is not going to hold up forever based on ad viewership trends. Perhaps, in the future, consumers will be required to watch a certain number of ads in order to receive TV for free. PVR's can track this type of activity. This type of arrangement has been offered by some Internet service providers, who provide free service in return for the consumer being exposed to advertising.

Even though the number of viewers using PVR's now is relatively small, this is a good time to start formulating strategies to respond to the growing ad zapping trend. If the DRTV industry and people associated with the industry do not address the issue soon, we could end up in a position similar to what happened with the recording industry, which has seen their business decimated by downloading.

Peter Koeppel is Founder and President of Koeppel Direct