Consumers Warming to Emerging Television Advertising Services

For Immediate Release
Contact: Jenny Barrett
Parks Associates
972-490-1113
Email: Jenny@parksassociates.com

Consumers Warming to Emerging Television Advertising Services
Survey finds consumers willing to trade viewing information to advertisers for the ability to fast-forward through commercials with a DVR

DALLAS, July 28, 2005 — Nearly one-half (46%) of U.S. Internet consumers aged 13 and older are comfortable with viewer tracking and targeted advertising services if offered in conjunction with ad-skipping capabilities, according to Digital Entertainment: Changing Consumer Habits, a new study from Parks Associates.

This study, based on a survey of more than 2,000 consumers in U.S. households with Internet access, finds that consumers respond favorably to prospective television advertising services that track their viewing habits and produce targeted TV or e-mail ads if they also have the ability to fast-forward or skip regular TV commercials.

“This finding bodes well for TiVo and other PVR/DVR developers, who are hoping to balance viewers’ desire to have fewer commercials with the needs of broadcasters and advertisers to better measure their audience and drive more value from advertising,” said Kurt Scherf, vice president and principal analyst at Parks Associates. “The PVR/DVR platform has great potential to reshape how consumers interact with marketing messages and to improve the connections between advertisers and potential buyers.”

Scherf notes that the advertising lessons now emerging from the PVR/DVR space are also applicable to service providers as they seek to deploy more interactive IP video services, including offerings from both telcos and cable MSOs.

“Advertising revenues will be important for next-generation video providers in solidifying their services,” Scherf said. “In addition to building more robust ARPU and increasing customer satisfaction via on-demand applications, targeted advertising applications that better measure viewer preferences and then drive targeted purchases should be part and parcel of business model development with IP video services.”

Parks Associates’ Digital Entertainment: Changing Consumer Habits is an Internet-based survey instrument of 2,084 U.S. consumers in households with Internet access, including 270 teenagers between the ages of 13-17. This study analyzes consumer behavior for digital entertainment in the home, including product purchases, service subscriptions, use of home computers and the Internet for multimedia purposes, and interest in new Internet- and carrier-based services.

For additional information on Digital Entertainment: Changing Consumer Habits, visit http://www.parksassociates.com or contact 972-490-1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are “digital” or provide connectivity within the home. The company’s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts Fall Focus and co-hosts CONNECTIONS (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com