One of the benefits of a digital signage network is it’s ability to avoid the Tivo effect, where consumers are able to zap through one’s advertising messages. A recent article from USATODAY, Five-second ads try to counter Tivo, describes how companies such as Honda and AOL are running five second ads toward the end of a commercial break in an attempt to grab Tivo users’ attention when they stop fast forwarding and the jump-back feature is enacted, compensating for the user’s reaction time.
DVRs such as Tivo are a growing concern for advertisers. According to Forrester Research, at the end of 2005, 12.2% of households had DVRs and by 2010, that number is expected to grow to 50.5%.
In the article, Brett Bender of Honda’s ad agency RPA states, “We’re always looking for things that will be TiVo-proof.”
Digital signage networks can deliver Tivo-proof messages. Those shorter ads designed for the web or the five-second ones created for television can also be utilized on an out-of-home digital signage network.
In the home, consumers are engaged with their favorite shows and do not want to be interrupted with commercial breaks. Out-of-home, they welcome compelling and engaging ads which provide relevant and timely information. In an Arbitron retail media study, 81% of consumers stated they were interested in seeing video programming in the store they are in.
Since consumers are receptive to digital signage and 74% of purchase decisions are made in store, more and more advertising dollars will shift to this rather infant medium as new and larger networks pop up. Advertisers will learn to adjust and complement consumer behavior and preferences instead of trying to circumvent them.
