TiVo Roamio Pro

David Lombardi, Ariana Sacco, Emma Zamierowski

BUS 344 A

Advertising Management

Professor Lantos

May 2, 2014

TABLE OF CONTENTS

Executive Summary…………………………………………………………………….1

Situation Analysis/Strategic Research………………………………………………….2

a. The Organization..……………………………………………………...3

b. Market Research………………………………………………………..3

c. Product/Brand Research………………………………………………..4

d. Customer Insight Research……………………………………………..5

e. Summary SWOT Analysis……………………………………………...9

f. Key Advertising Problem and Advertising Opportunity………………11

Advertising Message (Copy, Communication, Creative) Objectives……………….....11

Advertising Appropriation……………………………………………………………..13

Creative (Communication, Copy, Message) Strategy…………………………………14

a. Advertising Message Idea (Appeal, Theme, Message Content)………14

b. Message Format (Creative Execution, Copy Style)…………………....15

c. Rough Ad………………………………………………………………16

Media Strategy…………………………………………………………………………17

a. Media objectives………………………………………………………..17

b. Media mix………………………………………………………………17

c. Cost efficiencies………………………………………………………...18

d. Media schedule………………………………………………………….18

Evaluation Strategy……………………………………………………………………..19

Summary/Conclusions…………………………………………………………………..21

Bibliography…………………………………………………………………………….22

Executive Summary

The purpose of the term paper campaign project was to develop the advertising campaign

strategy for a client organization for one of their market offerings. We chose to develop an

advertising campaign for the TiVo Roamio Pro. In August 2013, TiVo introduced its third

offering in its product line of digital video recorders with the pro. Its previous two products were

the Roamio and the Roamio Plus. One of the highly anticipated features has been out-of-home

streaming. If someone is connected to the same wireless internet network as the Roamio Pro,

live television and recordings can be accessed from any mobile device. TiVo’s main goal is to

differentiate itself from its competitors like Verizon and DirecTV and receive a positive response

from consumers. The expected benefits include a love for out-of-home streaming, a match made

in Heaven with streaming capabilities and viewers’ favorite cable channels, simple searches for

upcoming new episodes or reruns of old seasons, and the freedom to record multiple shows at

once.

The project begins with situation analysis/strategic research by introducing TiVo and

describing its market, product/brand, and customer insight research. Summary SWOT analysis

and the key advertising problem and advertising opportunity are also part of the situation

analysis/strategic research. The next sections of the paper are the advertising message

objectives, advertising appropriation, and creative strategy. The creative strategy will address

the advertising message idea and message format. The remaining parts of the paper of the

projects will discuss media strategy, evaluation strategy, and summary/conclusions.

Situation Analysis/Strategic Research

a. The Organization

The organization we developed an advertising campaign for is TiVo. Their headquarters

are located in San Jose, California. In July 2008, TiVo was introduced I Australia by Hybrid

Television. In 2010, TiVo formed an exclusive partnership with cable provider Virgin Media to

supply its branded products.

The origins if TiVo can be traced to the 1990s. Mike Ramsay and Jim Barton were part

of a joint venture between Time-Warner and Silicon Graphics Image known as the Full-Service

Network Project. The goal of this venture was to create the first expansive interactive television

system. The duo soon realized they could develop the same type of system with far greater

knowledge than their respective companies, at an affordable rate. TiVo was created to give

viewers control over their viewing experience and time.  Ramsay and Barton quickly put

together a world-class team to establish the world’s first personal television service.  TiVo

unveiled its product at the National Consumers Electronics Show in January of 1999 (“TiVo”).  

TiVo has evolved to become a leading provider of television to the cable industry around

the world.  TiVo aims to deliver a branded viewing experience that combines traditional and

next-generation television.  In addition, the company engages in interactive advertising and

television audience research.  By integrating its patented DVR technologies with its universal

cable box, TiVo has established itself as the ultimate single-solution media center (About TiVo

Inc.).  Marketing objectives of TiVo include distinguishing TiVo from its competitors, educating

consumers about the service, and maintaining brand awareness.    

Although TiVo was the first product to allow consumers to record shows and skip

through commercials, it has struggled to remain competitive.  In 2013, TiVo decided it was time

to rejoin the ranks amongst other companies such as Apple and Roku. They chose to work with

an agency that is based in Minneapolis, Olson. Olson will be handling advertising, digital media,

PR and social media. TiVo had previously worked with Allison & Partners for consumer PR and

handled digital and advertising in house. As for corporate PR, TiVo will continue to work with

Sloane & Co (Morrison).

After the first quarter of 2014, TiVo posted a gross profit of $63,092, slightly down from

the $67,394 of the previous quarter.  The company’s assets total $1,301,791, a significant

increase from the previous quarter’s $763,653.  In June of 2011, Marketwire conducted the first

employee-based survey in the Bay Area.  TiVo was named one of the best workplaces in the Bay

Area.  According to Senior Vice President of Human Resources Nancy Kato, “We scored in the

top percentile for providing an environment where our employees feel they have competitive

benefits and pay for performance, are genuinely appreciated and supported by management for

their efforts, and feel they are part of something meaningful” (“TiVo Named Top Work Place in

the Bay Area”).         

b. Market Research

TiVo created the industry and market known as Digital Video Recording in the late

1990s.  A digital video recorder is defined as a consumer electronics device or application

software that records video in a digital format to a disk drive, USB flash drive, SD memory card,

SSD or other local or networked mass storage device.  Once they entered this new industry, TiVo

became known as the “coolest product to have entered the television stage for decades” (Brause,

Fernandez and Tsung 6). The DVR industry is continuing to grow as television views

dramatically increase when including those who use DVR devices.  Nielsen started measuring

DVR usage in 2006 using the National People Meter Panel.  From January 2007 to March 2009,

DVR penetration grew by 18.3 %.  The integration of DVR technology into cable set top boxes

has been an important factor in the growth of the DVR industry (“How DVRs are changing the

Television Landscape: April 2009”).       

                  Since its introduction in 1999, TiVo faces more competition than ever from cable and

satellite television companies.  Providers such as Verizon and DirecTV seek to expand their own

DVR offerings.  Stand-alone devices like Roku, Google’s Chromecast, and Apple TV strive to

simplify internet streaming on large-screen televisions.  Game consoles and smartphones are

enabled with more capabilities than TiVo (Jesdadun).  

                    In July of 2010, TiVo partnered with Suddenlink Communications into a strategic

relationship to distribute co-branded TiVo DVRs as well as set-top boxes.  Suddenlink is the

eighth largest cable provider in the United States and will distribute TiVo Premiere DVRs and

non-DVR set-top boxes (“Suddenlink & TiVo Announce Strategic Distribution Agreement”).      

c. Product/Brand Research

        TiVo is hoping that avid television users will prefer one device that does it all.  Their goal is

to position the Roamio as not just a DVR but instead a whole-home media device.  The basic

functions of the TiVo Roamio are the ability to pause and rewind live television.  It also supports

subscription services like Netflix and Hulu.  The Roamio includes a TiVo integrated search,

entertainment applications, and built-in wifi.  With the integrated search, you are presented with

a great list of options from television programming to on-demand libraries.  The TiVo discovery

bar keeps track of the viewers’ likes and dislikes.  Collections organize television and web media

into easy-to-scan categories (“Roamio”).     

                    Roamio offers suggestions on what to watch based on other TiVo users’ history. Up

to 450 hours of high-definition television can be stored.  The Roamio can record as many as six

channels at once.  Users can even stream shows to mobile devices while watching something

different on television (Mattise).  Popular applications for music and video such as Pandora

Radio and Youtube can be accessed directly through TiVo.  The company claims its product’s

user interface is quicker than it has been in a decade.  Some of the product’s competitive

weaknesses are pricey hardware, a lack of high-profile potential compatibilities, and limited

streaming support.  Some cable providers do not support live streaming of certain networks.      

                   There are three products in the TiVo Roamio product line: the Roamio, the Roamio

Plus, and the Roamio Pro.  Like the Roamio Plus, the Roamio Pro can simultaneously record six

shows.  However, high-definition recording capacity has increased to 450 hours, a 300-hour

jump (“Roamio”).  TiVo promises improved performance over the Roamio Plus.  A common

issue with DVRs is responsiveness.  TiVo hopes to distinguish itself from the DVR market with

a snappy responsive user interface.         

d. Customer Insight Research

       TiVo Roamio hopes to appeal to high-end consumers who purchase the most expensive

television packages and Internet services.  A primary market could be families or households.

The US Census Bureau considers a family one householder and others related to the householder

who live in the same household.  A household is defined as everyone who lives in a single

housing unit.  The inhabitants of a household have important implications for economic

resources.  In each household, there is typically one person who is identified as the

“householder”.  The householder is the person whose name in which the house is owned.  A two-

source income household has more buying power than a grandmother who lives with her two

small grandchildren.  According to 2010 Census data, the householder and their family

represented 87% of the population, or 262 million people.  These householders have a total of

88.8 million children.  About 73% of these children were under 18 years old.  

TiVo is the perfect product for anyone with children.  Most parents do not want their

children to vegetate in front of the television, but it can be a great place families to spend time

together.  There were 1.2 million son-in-laws and daughter-in-laws in 2010.  Approximately one

half of them were dependent on their in-laws for housing.  Another 1.1 million were

grandchildren who lived with their grandparents, the majority of whom were under 18.  A

secondary market could include nonfamily households.  A nonfamily household has one

householder living by him or herself with non-relatives exclusively.  There are 39 million

nonfamily households in the United States, representing 33.5% of the total population (Lofquist,

Lugaila, O’Connell, Feliz).  TiVo is a product that consumers typically use in his or her home.

Therefore, identifying nonfamily households as a secondary market makes sense.  39 million

people is still a significant opportunity.              

Targeted consumers buy this product for the features that provide convenience and an

optimal television viewing experience.  First, most people do not schedule their lives around

their favorite television shows.  TiVo Roamio allows consumers to record a show, save it and

watch it at his/her convenience.  Second, many people follow more than one show while multiple

members in the household may want to record a show.  TiVo Roamio allows the consumer to

record up to four shows at once.   Everyone in the household can watch their recorded shows

when they want.  TiVo Roamio also has built in Wi-Fi and connects to TiVo streaming.  TiVo is

a product that provides consumers with convenience and creates a pleasurable television viewing

experience.  Watching TV should not be stressful.  

Consumers’ rationale behind buying the TiVo Roamio can be analyzed using Marshall’s

Theory of the Utilitarian Consumer.  The first assumption of Marshall’s Theory states that

consumers are rational.  People buy products and services using purposeful, thoughtful, and self-

interested calculations (Lantos).  Most people use television for entertainment, and the decision

can be highly involving.  If a consumer watches a lot of on-demand entertainment, one provider

may offer better rates than another.  They want to get the most for their money, which refers to

maximizing value.  Second, consumers are adequately educated before they make purchases.

They are knowledgeable of marketplace alternatives and the utility provided by each item

(Lantos).  Anytime someone shops for a highly involving product, the level of decision making

is typically high.  Consumers use their cable services on a regular basis, so making the best

purchase decision is important.  Next, consumers are self-interested, meaning they strive to

improve their own lives (Lantos).  Having a high-quality product like the Roamio could increase

someone’s ability to have social gatherings.  Nobody wants to go to a party where the host is

playing music from a record player.  Finally, consumers are sovereign.  Needs and wants come

solely from the consumer as opposed to environmental forces like people, mass media, or other

promotional communications (Lantos).  If consumers decide to purchase the TiVo Roamio, it is a

result of their own free will.        

                  Since its introduction to the marketplace in 1999, TiVo has always found a way to

remain relevant.  TiVo’s Chief Financial Officer Naveen Chopra says, “We look at how do you

go beyond the DVR and serve the next-generation of consumer needs.  There’s content from

more places than before, consumption of that is more diverse, and with the evolution of the

product, you have to make it simple to use” (Crum).  There is decent demand within the target

market.  However, a great deal of marketing and advertising is necessary to persuade, remind,

and reinforce people.  The TiVo Roamio faces stiff competition from cable providers Verizon,

DirecTV, Comcast, and the like.  Other devices such as smartphones and tablets impinge of TiVo

Roamio’s potential customers.  Demand needs to increase.  The method to accomplish this is by

distinguishing the Roamio from similar products.  Our goal should be to accentuate all the

benefits and highlight the drawbacks of competitors’ products.  The target market is in the

attitude formation stage in the hierarchy of communication effects.  The campaign should shift

consumers to the buying intention stage.     

                   TiVo products including TiVo Roamio Pro can be purchased online at the “TiVo

Shop” and in retail stores such as Best Buy and through online stores like Amazon and the Best

Buy website.  Purchase of TiVo Roamio would be a one-time event with the monthly fee of the

service.  There is no time restriction on when consumers can buy TiVo because it is conveniently

always available for purchase.  Typically, people buy new cable boxes when they are unhappy

with their current one or the next “big thing” arrives.  The technology market is fast-paced

market where people will purchase new products quickly if they are not satisfied. TiVo Roamio

Pro will satisfy its users.

                 Customer reviews can be accessed online on Amazon.com.  Most products offer

customers the ability to rate the product on a scale from 1-5.  Customers can also rate the

helpfulness of reviews.  One review of the TiVo Roamio Pro is titled, “A Big Step Up for

Watching Over-The-Air TV”.  155 out of 160 people found the review helpful.  On Amazon, the

most helpful critical review characterizes the Roamio as, “Better than most DVRs, but not good

enough anymore”.  The consumer gives three reasons why the Roamio Pro is not all that it is

cracked up to be: the new models have different tuners, these tuners can only be used with digital

cable, there is no upgrade for lifetime subscriptions.  Finally, there was no access to Amazon

Prime.  The consumer ended up switching to the Roku (“Customer Reviews: TiVo Roamio HD

Digital Video Recorder and Streaming Media Player (TCD846500)”).  This information source

is definitely important to consumers.  These are honest reviews.  Consumers have nothing to gain

from talking up a product that does not work.  People typically trust their friends and families

which is why word-of-mouth can be so powerful. All of the reviews are unique to each

consumer’s experience, which gives them validity.    

                 As a digital video recording system, the target market of TiVo Roamio is avid

televisions watchers. They watch television for entertainment but gather information through this

media vehicle.  Although they gather information, TiVo users do not want to sit through

commercials, so they search and gather information online.  While they gather information

online, they still use the internet for entertainment.  Both television and internet provide users

with useful information and data and simultaneously provide the user with entertainment.

e. SWOT Analysis

To better understand TiVo Roamio Pro’s advertising opportunity, we analyzed its

strengths, weaknesses, opportunities and threats. People today do not want to sit through

commercials; they want to watch their shows when they want and be able to store that

information.  TiVo Roamio Pro must differentiate itself from its competitors which begins with

SWOT analysis.

The strengths and weaknesses of the Roamio Pro are internal.   An obvious strength of

the Roamio Pro lies in its product attributes.  The remote comes with an integrated search feature

that provides viewers with a variety of viewing options.  TiVo applications include but are not

limited to Netflix, Hulu, Spotify, YouTube, and Photobucket.  An obvious strength lies in the

Roamio’s upgrade from 300 hours of storage to 450, a 50% increase (Hutchinson).  The relevant

internal weaknesses are TiVo Roamio Pro’s streaming support. The Roamio Pro’s hardware is

expensive and lacks high-profile capabilities.  These problems cannot be solved with advertising.

These are service and production problems that TiVo needs to resolve.

Opportunities and threats are external factors that affect the market and how TiVo

Roamio Pro performs in comparison to its competitors.  The Roamio Pro has the possibility to

spread through many different markets.  The Roamio Pro’s target market includes a wide range

of people. In earlier years, TiVo lost their share of the digital video recorder market.  TiVo was

irrelevant in the minds of consumers, but today TiVo is making a comeback.  They hope to

regain awareness with increased advertising.  Opportunities lie in technology.  TiVo should

continuously introduce newer versions of their set-top boxes.  They have already updated the

previous TiVo Roamio to TiVo Roamio Pro.  Finally, we must consider threats to TiVo Roamio

Pro. Looking at the threats will assist in avoiding a loss in sales and being aware of the

competitors.  Verizon, DirecTV, Roku, Google’s Chromecast, and Apple TV are external threats

to the Roamio.  As these competitors continue to improve their technology, they begin making

strides in the market. Another threat is loyalty customers to competitors whether it be Apple or

Verizon or the like.  Loyalists of these brands will be hesitant to use TiVo.  For example, if

someone has an iPhone, an iPad and a Mac computer, then they are more likely to use an Apple

TV rather than TiVo.  It is important for TiVo to know this and find a way to avoid this.           

f. Key Advertising Problem and Advertising Opportunity

The advertising problem is differentiating TiVo’s Roamio Pro from its competitors and

convincing consumers to purchase it.  If TiVo cannot successfully separate itself from the pack,

it could become a parity product.  If this happens, consumers are more likely to purchase a

product from a brand that is well known, better in quality, or cheaper.  TiVo created the market

for digital video recording devices, but as soon as competitors gained momentum, TiVo was lost

in the shuffle.  By differentiating itself, TiVo can regain a significant market share and bolster its

reputation as the founder of the DVR.

The advertising opportunity lies in the sheer size of the market for digital video recording

devices.  People are always going to purchase television services.  TiVo could capitalize on

switchers who have low levels of loyalty to their cable provider, who are unhappy with their

cable provider or are a first-time purchaser of this technology.         

Advertising Message Objectives:        

           The target market consists of family and nonfamily households.  Between the two

household types, there are about 301 million people.  

           The five criteria for a statement of advertising objectives are communication task, target

audience, time frame, quantifiable/measurable, and measurement methodology.  The

communication task should be to inform consumers with the information they need about the

Roamio Pro to convince them to buy.  The target audience is all television viewers.  The time

frame of the campaign will last from 1 - 2 years.  Normally, customers need to be exposed an

advertisement at least three times to be driven towards a purchase decision.  Running an ad one

time will generate little interest unless prices are truly unbelievable (“Create an Effective Ad

Campaign”).  We will measure the success of our campaign by comparing Roamio Pro sales

before, during, and after the campaign.  Typically, companies track sales on a quarterly basis.

Measuring success on an ongoing basis will allow us to make necessary changes as the campaign

progresses. When looking at the success of our advertising campaign, we will have to ask

ourselves: What percentage of these sales can be attributed to advertising?    

           To measure our media effectiveness, we will calculate our exposure value.  Exposure

value is determined using reach, frequency, and continuity.  We will use percentage coverage to

express our advertising reach.  We will research further by breaking our advertising down by

vehicle audience.  Print audience can be easily calculated.  TiVo can keep track of the number of

flyers it distributes with newspapers.  Broadcast audience can be determined by how many

viewers see the advertisements.  An important factor in calculating these numbers would be

when the advertisements run.  Your exposure will be greater during prime time than at ten

o’clock in the morning.  Our goal is to have commercials run at least twice an hour on popular

networks like CBS, ESPN, and TBS.  CBS is America’s #1 watched network.  ESPN is the

worldwide leader in sports.  TBS is a popular network for both family and nonfamily

households.  These are three widely popular channels that draw millions of viewers every day

and night.  One year after the advertising campaign, we would like consumers to be 15% more

aware of the Roamio Pro.       

Typically, an advertising campaign is run until it stops working.  We project that the

campaign will run for 1 ½ years.  DirecTV ran a campaign where each commercial was a chain

of events.  An example of this is the commercial title “Roadside Ditch”.  The narrator says,

“When your cable company keeps you on hold, you get angry.  When you get angry, you go

blow off steam.  When you go blow off steam, accidents happen.  When accidents happen, you

get an eye patch.  When you get an eye patch, people think you’re tough.  When people think

you’re tough, people want to see how tough.  And when people want to see how tough, you wake

up in a roadside ditch.  Don’t wake up in a roadside ditch.  Get rid of cable and upgrade to

DirecTV.”  DirecTV created several of these chain-of-events commercials that were wildly

popular.  They utilized humor to create an association between the commercial and the brand.

Advertising Appropriation:

             The size of the market is one very important factor in determining the advertising

appropriation.  Since our campaign is essentially targeting the entire country, the advertising

appropriation will be very large.  The campaign targets households, which typically means that

the adults in the households will make the purchase decisions.  Another consideration is the

choice of media vehicle.  Advertising during primetime on national channels will cost

significantly more than a few advertisements in print media.     

            We will use the objective-and-task method.  This method starts with advertising

objectives, determines the tasks or activities needed to achieve those activities, and then sums up

the cost of the various activities.  The important factors in this method include advertising

objectives, strategies needed to realize these objectives, and all other elements examined in the

SWOT analysis.  

              Total spending will be in the millions of dollars.  We are going after a market of 301

million people.  If we spend $301 million, that would equal $1 for each person in the country.  It

should probably be less than that because not every single person will purchase the Roamio.  Our

primary target consists of families, each of which would only make one purchase of the product.

               With a total budget of $50 million, we have allocated our funds to different budgets.

Media is always allocated the highest percentage of the budget. The other budgets include

research, creative work, ad/commercial production, and administrative costs. We will allocate

the following percentages of the budget to each account:

Media → 80%, $40 million

Research → 5%, $2.5 million

Creative Work → 6%, $3 million

Ad/Commercial Production → 5%, $2.5 million

Administrative Costs → 4%, $2 million

Creative Strategy:

           a. Advertising Message Idea

Like previous models, the TiVo Roamio supports basic functions like the ability to pause

and rewind live television.  Recommendations are developed based on current television trends

and other TiVo users’ preferences.  The updated Roamio has enough storage for 150 hours of

high-definition television.  Some of the models allow consumers to watch live and recorded

television on their smartphones and tablets.  Streaming is currently limited to devices on a home

wireless internet connection.  Out-of-home viewing at places like hotels and coffee shops will be

made available this fall.  The basic selling appeal of the campaign is informational.  It is founded

on a combination of product features and customer benefits.          

           b. Message Format

The TiVo Roamio can perform all the stated functions in the advertising message idea.  It

has a proven reputation of product excellence and reliability. The tone of the ad should be

friendly and playful.  It should invite viewers to explore what the TiVo Roamio has to offer.  It is

not uncommon for commercials on cable to advertise for the premium channels like HBO and

Cinemax.  These commercials typically utilize exciting provocative scenes from these channels

to spark viewers’ interest.  A classic example of this would be a commercial for the show Game

of Thrones. Their commercials feature action and humor snippets that provide viewers with a

taste of what the show is lie.   

The motivational appeal will be a humor appeal.  Since the Roamio is a television

product, it makes sense to use a lot of television advertising.  The most relevant keys to effective

use for the Roamio include entertainment, playing on emotions, dramatic effects, repetition, and

a strong, memorable close.    

The presentation method used to convey this appeal is a dialogue. This technique uses

two lines of conversation between “Roamio” and Juliet, including a quote from the original play

by Shakespeare. The dialogue is engaging to the audience while also informative. The dialogue

explains how the biggest benefit is the availability to watch television shows wherever you want.

Our slogan is “Anytime, anywhere, any device.” This summarizes the most important

benefits of the new and improved Roamio Pro. Television shows are available wherever and

whenever you want it, whether it is on television, a mobile device, tablet, or laptop. To be

effective, slogans should be short and memorable. They should include the name of the device

and the logo to help ensure brand recognition.

c. Rough Ad

We have attached a copy of our advertisement for the TiVo Roamio Pro. The copy of our

ad works to achieve humor by playing off the name of the product while making connections to

entertainment. Our ad uses the dominant layout format and features a picture of the product

centered towards the bottom of the ad. This separates the more important copy from the more

specific product details that are presented at the bottom. We have added a grunge effect to the

background of the ad to enhance the sense of antiquity. This layout design is appropriate

because it relates to the Shakespeare theme. The ad follows a Z-flow, drawing the viewer’s eye

to the top left hand corner first, following down to the right with the larger type face, and then

left to the beginning of the slogan and to the small detailed copy at the bottom if the viewers

want more specific information. The picture of the product will make it very apparent what is

advertised. Our ad has informal balance; it is asymmetrical with the two blocks of text on the

top half of the ad balancing each other out. The font combined with the background and the

name of the product creates a sense of unity and strong gestalt within our print advertisement.

The black font and dark picture of the product contrast nicely with the light colored worn paper

of the background, making it easy to read.

Media Strategy

a. Media Objectives

When analyzing reach, it is more appropriate to calculate the number of households

reached rather than the number of people reached. It is likely that each household will buy only

one TiVo Roamio Pro. Our goal is to reach 1 million different households every month

throughout the year that the campaign runs. By the end of the campaign, we hope that we will

have 12 million household exposures or impressions. There are approximately 115 million

household in the United States (U. S. Census Bureau). This means that .01% of households in

the United States will be reached. We estimate that the frequency of exposures will be 4 times

per month per household. This is the average number of times a household is exposed to the

print ad in the media per week. Based on these estimates of reach and frequency, we project

approximately .04 GRPs over the entire United States. Similarly, gross impressions will equal

48 million.

b. Media Mix

Our media mix consists of our print ads in consumer magazines. Some examples of

magazines we will advertise in include “People”, “US Weekly”, “OK!”, “TV Guide”, and “Star”.

We selected these magazines because of their entertainment base. Readers are likely to be avid-

television users and interested in purchasing a DVR. The ad will be a full-page spread about

halfway through the magazine. We hope to save money by purchasing the first few pages or the

back cover of a magazine. These advertisements will be in full color. Despite the higher cost

compared to black and white, color ads will be more effective in drawing attention.

c. Cost Efficiencies

A one-page, four-color ad in a magazine would cost about $3,000. We estimate that the

ad will reach 200,000 people in one magazine. This means that the cost per thousand people

reached would be $15. We estimated that only half (100,000) of the people we reach will be in

our target market. This means that the cost per thousand target audience (CPRP) will equal $30.

Since the target market is half the size of people we reached, the CPRP will be twice as

expensive as the CPM.

d. Media Schedule

Our advertising campaign is going to last one full year (52 weeks). The ad will be placed

in each of the five above-listed magazines once every month for each of the 12 months. This

will hold true whether the magazine is distributed weekly, bi-weekly, or monthly. These

magazines will be distributed equally across the country, but obviously more copies will be sent

to more densely populated areas. The frequency with which each magazine is published will

define our strategy. If we use a continuous strategy, the magazine will be distributed monthly. If

we decide on a flighting strategy, the magazine will be published more than once a month.

There will be 500 billboards across the country, averaging in each state. Our advertisements will

be on billboards the first week of every month, utilizing a flighting strategy of exposures. This is

an intermittent schedule with alternating periods of intense advertising followed by a silent

period, or hiatus, with no billboard activity.

Evaluation Strategy:

There are a variety of options for pre-testing our campaign.  The list includes a consumer

jury, storyboard tests, eye camera, attitude test, and depth interviewing.  Consumer reaction is a

more reliable method of testing and gives natural reactions to an advertising campaign.  With

storyboard tests, pictures are placed on a film strip accompanied by an audio file.  To test the

commercial, the advertiser uses the anteroom trailer method.  This method uses magazines,

newspapers, and television programs. Through the eye camera, eye movements are recorded to

measure the eye’s activity.  If a viewer is attracted to a commercial, his or her eyes will be fixed

on it.  A consumer’s attitude is a good indicator of advertising effectiveness.  Attitude scales

measure the attitude of potential customers, measuring on a continuum. Attitude tests are pre-

test research. In this test, participants respond to questions on a seven-point bipolar scale about

various advertisements.  If attitudes of potential customers are shifting toward the products, the

advertisement is effective.  Depth interviewing seeks a natural reaction from consumers.  By

carefully crafting questions, unconscious needs and desires can be brought to the surface.  We

will use consumer juries, eye tests, and depth interviewing.  Copy, filming techniques, and layout

can be properly analyzed by the consumer’s concern.  The activity of the eye cannot be

fabricated.  Depth interviewing is designed to achieve meaningful and valid results.               

Evaluation is performed through testing, monitoring, and measurement.  Testing predicts

results, monitoring records performance, and measurement evaluates results.  Differentiating

TiVo from competitors will not necessarily convince consumers to buy.  Persuasion is a key

indicator of advertising effectiveness.  Persuasion is the deliberate attempt to influence or

motivate an audience.  We will want to create advertisements that create or change attitudes.

The persuasion knowledge model presumes people’s persuasion knowledge develops through the

course of their lives.  In this model, there are three sources of persuasion: personal experiences,

conversations about thoughts and feelings, and observations.  People are more likely to believe

advertising if their friends say they like it.  Observations of marketers can be another source of

evaluation (“Stages and Methods of Test Advertising”).

We will calculate exposure value to determine our return on advertising investment. We

will use percentages to calculate reach because we are gathering data from the entire country. It

is more economical to use percentages then to try to determine exact numbers

Summary/Conclusions:

At the conclusion of this advertising campaign we expect TiVo Roamio Pro to be, once

again, a front runner in the Digital Video Recording Industry. Our advertising campaign will

give TiVo Roamio Pro a new look. Through playful and entertaining advertising, TiVo will no

longer blend with its competitors. Using television, print ads and billboards, we will expose

TiVo to its target market effectively and communicate its message. Because the target market is

so large, exposure and generating awareness will not be difficult. At the beginning of our

advertising campaign we identified that the problem with TiVo was that it had many competitors

and it needed to differentiate itself. We have taken advantage of the opportunity of the large

target market and expect our campaign to be nothing shy of successful.

Works Cited

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Hutchinson, Lee. “TiVo Roamio: more shows, more space, more search, more streaming”. arstechnica. 20 August 2013. Web. 6 April 2014.

Jesdanun, Anick. “TiVo’s Roamio Takes On Chromecast, Apple TV with New Features”.  The Huffington Post 20 August 2013. Print

Kumar, Siva. “MEASURING ADVERTISING EFFECTIVENESS: Pre testing methods”. Blogspot. Web. 22 April 2014.

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Mattise, Nathan. “TiVo Roamio marries content recording and roaming, but cable keeps calling”.  arstechnica. 12 November 2013. Web. 6 April 2014.

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