We knew this was coming… In fact, Mari just covered a similar advertising service that will glue commercials onto Charter’s video-on-demand programming. TiVo’s “Program Placement” allows advertisers to buy slots for their commercials to play at the conclusion of a recorded program. This could be very lucrative for TiVo as it really creates a secondary advertising market, unlike Product Watch which has dried up. (Really, did we think opt-in advertising was going to be huge?) For example, let’s say a company can’t afford to run an ad during Lost or that a competitor has a deal with a network, through TiVo they can now purchase time to reach that demographic. As long as these ads are only inserted after programming, I can live with it.
NEW YORK, Nov 28, 2006 /PRNewswire-FirstCall via COMTEX News Network/ — TiVo Inc. (Nasdaq: TIVO) announced today Program Placement, its latest advertising solution that offers advertisers an opportunity through the TiVo(R) Service to insert an ad after a program has played, when there is nothing left to fast forward through. For the first time, advertisers will be able to reach their target DVR audience by purchasing advertising enhancements against specific shows. Burger King Corporation, General Motors Corp., MasterCard Worldwide, The Weather Channel and Court TV are the first companies to take advantage of Program Placement on TiVo. Leading media and advertising agencies, including GroupM’s MindShare, Norwalk, CT-based Media Storm and GSD&M, worked with TiVo to have their clients be the first to use this revolutionary advertising solution.
Update: AdWeek breaks down the specifics of the new advertising and I’m feeling less tolerant. I’m not interested in seeing the TiVo interface covered with banner ads. Guess we know what else was in this month’s software update…
The graphical ad unit, which TiVo calls a “program placement,” appears at the end of a recorded program, on the screen asking viewers if they want to delete the show. TiVo said the ads are designed to be more interactive than standard TV spots, including options for long-form content, lead generation and purchases. Viewers must initiate all video, unlike so-called post-roll commercials increasingly common on Web sites.