Author(s): John A Fortunato, Daniel M Windels
It can be said that every time the technological communication environment changes so to does the advertising environment. Advertisers who do not carefully monitor and adapt to the technological communication environment run the risk of losing millions of dollars on inefficient advertising expenditures. The digital video recorder (DVR) is the latest technological innovation to which advertisers must adapt. By easily allowing the viewer to skip commercials the DVR is a device that could have potentially huge implications on advertising creative and placement strategies. The DVR is a clear threat to the advertising industry, but there are some opportunities for advertisers that can be explored because of DVR technology. The opportunities exist through an interdependent relationship between television networks and advertisers in creating a communication environment that is economically beneficial to both entities. The focus of this article is on understanding how and why DVR's are being used by the audience and examines the potential threats and opportunities that advertisers must be aware of in adapting to this technology.