Advertisers facing a new technological threat

Media&Marketing: Advertisers in Britain and Ireland are finally waking up to the potential threat from personal video recorders (PVRs.)

PVRs are essentially set-top boxes equipped with massive hard drives. The box records television shows on to a hard drive and can hold up 30 hours of programming.

The devices contain sophisticated software that allows viewers to stage their own replays, catch up on shows already in progress, index and select recorded shows, and eliminate commercial breaks.

This last function is the one which concerns the advertising industry.

Sky Plus, which is available in Ireland, is an example of a PVR system. While sales figures are low so far in Ireland, Sky hopes thousands of Irish homes will yet buy into the technology.

Some reports in the US have suggested the growth of PVRs could cut the amount of television advertisements by half within a decade. Others are more sceptical about predictions that the era of 30-second television spots is over.

PVR devices are generally connected to household telephone lines and this allows them to download commands to the set-top box. Shows are stored on the hard disk and viewers can choose later to watch programmes via an on-screen interactive index, deleting them at will and erasing the advertisements.

For example, a viewer can order the PVR to begin recording a show at 8.30 p.m. The viewer can begin watching the show at 8.40 pm, as it plays back from the hard drive, and skip the commercials. By the end of the show, the user will have caught up with the live version of the programme.

Ms Orlaith Blaney, managing director of McCann Erickson, said the Irish advertising community was aware of the issue. "A lot of people are taking about the demise of advertising with PVRs when you think about Sky Plus and the fact that you can programme your whole night's viewing without a single advertisement. But the level of penetration/uptake is still very low in Ireland," she said.

However, she said advertisers needed to adjust to the new technology. "I do believe that the PVR/Sky Plus approach means the market will fragment even more, but media fragmentation is everywhere already... Obviously, the role of outdoor and ambient advertising will become increasingly important, as will brand activation programmes.

"The key implication is the importance of strategic media planning. Where are your consumers? What mindset are they in? When are they most receptive to messaging about a brand?"

She pointed to a recent campaign as an example: "Universal McCann in London handled the media launch of XBox in Europe. Prior to the launch of the advertising, the commercial was made available via email and on the playmore.com website. It was seen on-line by 1.2 million people in Europe.

"The opportunity to connect outside of television advertisements was critical for XBox. So advertisements could be found in the pub, on beer mats, on urinals, on the way home from the pub and fast food packaging."

NewsTalk and Dunphy

The parachuting of Eamon Dunphy into NewsTalk's schedule is still likely to happen, according to sources. Exactly when and in what time slot are the key considerations. Talks between NewsTalk chief executive Mr Dan Healy and Mr Dunphy took place before Christmas and are expected to resume shortly.

A report in one Sunday newspaper that Mr Dunphy might pick up a cheque of €1.4 million for a two-year contract with NewsTalk has been rejected by sources.

With George Hook given a new contract and David McWilliams one of the station's most recognisable broadcasters, the remaining prime slot available to Mr Dunphy would be Morning Edition, which is currently hosted by Declan Carty and Orla Barry and is in direct competition with Marian Finucane and Pat Kenny.

This slot is popular with advertisers because it is the best time to reach homemakers who control spending on household goods. Whether that is really the territory for Mr Dunphy remains to be seen.

Conduit ad 'irritates'

An advertisement in Britain from Conduit has been described as the most irritating advert of 2003, by influential British publication Marketing.

The advertisement, in which three animated superheroes save people from spending too much on directory inquiries calls, was accompanied by the "double one, double eight, double eight" jingle.

Advertisement creator Euro RSCG defended the advert and said it was designed to be intrusive, irritating but ultimately memorable.

Out to tender

Irish Life's creative advertising account, currently held by DDFH&B, has been put out to tender.

Meanwhile the RTÉ Guide, Ireland's biggest-selling magazine, has put its media buying and planning account out to tender.