TV and the PVR

July 2011

TV and the PVR• Technology which allows viewers to record and playback

television has always had the potential to effect television advertising

• The VCR, DVD Recorder and now the PVR enable viewers to fast forward or skip commercials when playing back recorded programming

• The ease with which the PVR allows viewers to “schedule” their own viewing experience has added to the concern that television commercials are in greater danger than ever, however as with the VCR it is just not the case...

TV and the PVR• Commercials may only be fast forwarded or skipped when the

viewer is playing back recorded or time delayed programming

• In Canada almost all weekly viewing is to LIVE programming, a mode of viewing which cannot be skipped or fast forwarded, leaving commercials safe from the dreaded fast forward button

• On average only 1.2 hours out of the 28+ hours a week watched by Adults is in playback mode

• And, while commercials may be fast forwarded in playback, they are still breaking through...

TV and the PVR• For the relatively few Canadians who use a PVR to view

programs in playback and fast forward commercials, roughly half stop to watch commercials because they are either entertaining or the product advertised is of interest to them

• The vast majority of those who view programs in playback and fast forward commercials report awareness of the advertisers in the commercials they are fast forwarding

• In the PVR world, targeting to ensure the appropriate environment for your ad, and appealing/engaging creative is more important than ever

Total Weekly Television Viewing

18+ 18-34 18-49 25-49 25-54 35-49 35-54 50+ 55+ 60+

29.6

22.523.8 23.9

25.1 25.126.6

37.239.0

40.7

Avg Hours/Week

Source: BBM Canada; National PPM data averaged over first 49 weeks of 2010/11 broadcast year; Total Television 2a-2a

Live vs. PVR Playback Viewing

18+ 18-34 18-49 25-49 25-54 35-49 35-54 50+ 55+ 60+

28.4

21.422.6 22.7

23.9 23.925.4

36.037.8

39.6

1.2 1.1 1.1 1.2 1.2 1.2 1.2 1.2 1.2 1.1

Live - Avg Hours/Week PVR Playback - Avg Hours/Week

Viewers can only skip commercials during PVR Playback viewing

Source: BBM Canada; National PPM data averaged over first 49 weeks of 2010/11 broadcast year; Total Television 2a-2a

Live vs. PVR Playback Viewing

18+ 18-34 18-49 25-49 25-54 35-49 35-54 50+ 55+ 60+

96.1 95.3 95.2 95.0 95.2 95.2 95.3 96.8 97.0 97.3

3.9 4.7 4.8 5.0 4.8 4.8 4.7 3.2 3.0 2.7

% Live % PVR Playback

Viewers can only skip commercials during PVR Playback viewing

Source: BBM Canada; National PPM data averaged over first 49 weeks of 2010/11 broadcast year; Total Television 2a-2a

Stop to watch commercials

18+ 18-34 18-49 25-49 25-54 35-49 35-54 50+ 55+ 60+

45.7

64.8

50.6

46.043.7

39.938.0 36.9

39.1

46.2

% Yes

Q: When you fast forward or skip commercials [during PVR playback] do you ever stop to watch commercials that are of interest to you?

Source: BBM Analytics OmniVU July 2011

Stop to watch commercials

18+ 18-34 18-49 25-49 25-54 35-49 35-54 50+ 55+ 60+

49.047.1

56.0 56.4 55.9

67.264.6

33.8

29.030.7

35.8

42.3

29.4

25.5 25.9

14.116.6

49.1

54.6

49.1

% Interested in product % Found commercial entertaining

Q: What was the main reason for stopping to watch the commercial during playback?

Source: BBM Analytics OmniVU July 2011

Aware of commercials

18+ 18-34 18-49 25-49 25-54 35-49 35-54 50+ 55+ 60+

71.8 70.5 72.176.7 75.6

72.8 72.1 71.1 71.7

76.8

% Yes

Q: When you fast forward or skip commercials [using your PVR] are you ever aware of theadvertisers in the commercials you are skipping?

Source: BBM Analytics OmniVU July 2011