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Despite new technologies, advertisers still have faith in TV
(Waco Tribune-Herald (TX) (KRT) Via Thomson Dialog NewsEdge) Jan. 20--Waco businessman Sam Nay says he fast-forwards through commercials when he watches a TV program he has recorded earlier.
That puts him right in the middle of an issue over TV advertising and TV services that give viewers more control over what they watch and when they watch it.
Like Nay, many viewers breeze through advertising spots. But Nay owns the Dodge dealership in Waco. He buys advertising he hopes the public watches but knows that not everyone does.
He'll keep buying TV ads, he says, because rates to place ads on cable TV "are so low that I can buy a huge package." He said he can hit viewers on multiple channels and get his message across.
Nay said he does not think he's getting less bang for his buck.
"In the future, I'm sure we'll see more and more fast-forwarding, and it's going to have some impact," he said. "I'm not sure it's at a measurable point yet, but I bet some ad guru is thinking about it."
New additions to cable Time Warner Cable has several new services it likely will bring to the Waco market in 2009, spokesman Roger Heaney said.
They will work through digital video recorders that Time Warner Cable provides. But with a nod to advertisers, Time Warner will block customers from fast-forwarding through commercials on at least two of its new services, Heaney said.
On the others, customers can use their DVRs to record and rewind programs and breeze through commercials.
Some of the services Time Warner will offer are being tested in other communities.
"We get the bugs worked out and then do a blanket launch," said Heaney, adding that Time Warner will assess its infrastructure in Waco to see if it can accommodate the new services and make changes if necessary.
New services Waco customers may see next year include:
--A tool that lets viewers rewind any show they may come across and watch it from the beginning. This is a "start-over" service that would not allow viewers to avoid commercials.
--Series-on-demand, which will let customers view old episodes of many series. Viewers could fast-forward through commercials.
--A service that will let viewers watch any show that already aired that day. Viewers could not zip through ads.
--A service that allows viewers to watch experimental pilots and other extras from major broadcasters. Commercials could be bypassed.
--New interactive ads that will let viewers request more information or even buy merchandise with a click of the remote.
Matt Rohre, who oversees local operations for Grande Communications, said services that allow viewers to record programs and view them later or to pause and rewind live TV will continue to expand.
He said Grande is pursuing additional services that will give viewers more control over their viewing, but he does not yet have details about when they may hit the Waco market.
Changing viewing habits Meanwhile, businesses that want to advertise and marketing companies that want to help them continue to search for options in a world where viewing habits are changing.
"The key is to make commercials as entertaining as the show you're watching. Even in this age of zapping commercials, most people can tell you what their favorite funny commercials are," said Dean Riley, creative director for Innovation Advertising & Public Relations.
Riley said advertisers must identify "who they are trying to speak to" and whether traditional advertising will work.
"Sometimes clients want a TV campaign, but we don't always end up recommending that," said Riley, adding that advertising on the Internet opens up a whole new world of options.
John Fletcher at Fletcher Communications said "some TV commercials get zapped, but not enough to kill you." He has been known to zip through a commercial or two, he said, "but if I see an interesting visual element on the screen, I'll stop and go back and watch the commercial. You need compelling video, like maybe a helicopter hovering above a car dealership. That puts emphasis on quality production as opposed to someone standing there saying, 'Hi, come buy from me today.'" Bundling services More companies, including Time Warner Cable and Grande Communications, are bundling their services. That means they offer cable, Internet and telephone services.
That offers opportunities on several levels, said Riley, adding, "We're still learning of ways the (Internet) can be used to reach target audiences, particularly as those audiences become younger and younger." Becky Kueck, general sales manager for KCEN-TV, Channel 6, said fast- forwarding through commercials has not become an issue.
"I can tell you, I have not had one client ask about that or express concern about that," Kueck said. "I keep up with the trade magazines and, yes, people fast-forward through commercials, but no more so than they did when they used to record shows on VHS tapes." Kueck said if commercials are compelling, viewers will watch them.
She added that a percentage of viewers find themselves in a "buying cycle," meaning they are in the market for a car or appliance.
They will not zip through commercials for those.
Local news broadcasts remain an advertising bastion for TV stations like KCEN-TV, Kueck said. They are popular with advertisers, she said, because viewers typically watch them live, pay close attention to the programming and represent a higher-income audience.
Local cable companies are not alone in offering new services. The two big satellite broadcasters, DirecTV and Dish Network, plan new wrinkles to their product offerings.
Dish Network has launched an on-demand service that provides customers everywhere with access to Hollywood movies. About 300 films are now available, and that number will grow rapidly.
Spokesman Parker McConachie said customers who want the service will need high-speed Internet access and one of Dish's VIP-series receivers -- the most high-tech receiver it now offers.
"The system draws the movies through the Internet rather than down from the satellite," McConachie said.
DirecTV has launched an on-demand service that lets users in test markets, though not in Waco, download thousands of movies. The company plans to roll that service out everywhere next year and expand from movies to an array of programming.
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Copyright (c) 2008, Waco Tribune-Herald, Texas
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