Has DVR usage made TV commercials obsolete?

DVR usage has grown over 90% from May 2007 to May 2010, with DVR playback almost doubling in the past two years. The number of people who have a DVR still varies greatly by market, ranging from 26.5% to 47.1% in the top markets.

So with the widespread usage of DVRs and expected continued growth, are TV commercials obsolete? The answer is a resounding No. While the media mix for advertisers is changing to include more social media and two way conversations, TV commercials remain one of the most effective ways to advertise for many business categories.

Do people with DVRs even watch the commercials? You might be surprised to find 40-50% of those who watch a watch the entire program, including TV commercials. I have a friend who doesn’t like to fast forward through the commercials; for him, it “messes with the flow” of the program. I’m in the “fast forwarder” group: so does this group see the commercials? There are studies that confirm commercials that are fast-forwarded are seen and have good recall. The theory on this is you have to pay even closer attention to the commercials so you stop the fast forward in time to not miss any of your show. I couldn’t agree more—I’ve even found myself repeating lines from commercials while fast forwarding through them!

Advertisers might worry whether time sensitive messages will still work in this new DVR world. To read the rest of the story...click here.

This article was also picked up by b2cmarketinginsider.com.

Source: Nielsen 2010 analysis of live and same day ratings.