Home > About Us > News > To view or not to view?

To view or not to view?

 

 swain,scott_6.1.12_NUNews 

Tele­vi­sion stu­dios and Dish Net­work are embroiled in a legal battle over a new ad-​​skipping tech­nology the satel­lite broad­caster recently unveiled called “Auto Hop.” The issue also adds to the larger debate of how adver­tisers will reach viewers who are increas­ingly taking advan­tage of DVR, TiVo and Net­flix to watch their favorite pro­grams. We asked Scott Swain, an assis­tant pro­fessor of mar­keting in the Col­lege of Busi­ness Admin­is­tra­tion, to dis­cuss whether this tech­nology is threat­ening television’s busi­ness model and how adver­tisers are finding new ways to con­nect with consumers.  

Q: Is television’s business model being threatened by technologies such as Auto Hop, or will it endure like it did after the emergence of the VCR and TiVo? 

A: Yes, if widely adopted, tech­nolo­gies like Dish Network’s Auto Hop fea­ture directly threaten the cur­rent tele­vi­sion busi­ness model. Tra­di­tional adver­tising heavily sub­si­dizes the pro­duc­tion of net­work pro­gram­ming, so the net­works are under­stand­ably alarmed. They’ve wasted little time filing law­suits for copy­right infringe­ment and breach of con­tract. As Ron Burgundy’s char­acter in “Anchorman” might say, this is “kind of a big deal” because while we hear a lot of talk these days about the rise of alter­na­tive media and social media, tele­vi­sion is still the dom­i­nant mass medium.


Q: Will alternative advertising methods, such as product placement and on-screen pop-ups during shows, become increasingly more prevalent in the TV viewing experience? 

A: This is a great ques­tion. I’m teaching a course on adver­tising and brand pro­mo­tion this summer and we just dis­cussed this in class. Tele­vi­sion pro­ducers and adver­tisers are already exper­i­menting with new ways of get­ting in front of audi­ences. After a sitcom episode is filmed on a set, vir­tual prod­ucts can be strate­gi­cally inserted to take advan­tage of the likely visual focal points in a scene. In a rerun of “How I Met your Mother,” for example, a vir­tual water bottle with the Geico gecko on it was inserted on a shelf near actor Neil Patrick Harris’ head as he talks on the phone. Such product place­ments can be cus­tomized across time and viewing mar­kets. Sim­ilar product place­ment is also common in movies, video games and appli­ca­tions. One would also expect adver­tising to become a part of aug­mented reality tech­nolo­gies such as Google’s Project Vision glasses.


Q: What role do consumers play in how and how much they should be exposed to advertising while watching previously recorded programs or TV shows via services such as Hulu or Netflix? 

A: My stu­dents made a very inter­esting obser­va­tion on this point. While tech­nolo­gies such as Auto Hop, Hulu and Net­flix may seem to give con­sumers the ulti­mate con­trol over the ads they see, the oppo­site may be true. In the cur­rent tele­vi­sion busi­ness model, most ads are easily iden­ti­fied as such and are fairly com­part­men­tal­ized in terms of timing and place­ment. As brands become more inte­grated into the con­tent and “real world” expe­ri­ences, con­sumers have less con­trol over their expo­sure to brand images and mes­sages. Per­haps more con­cerning is that con­sumers may also be less likely to con­sciously rec­og­nize that they are receiving adver­tising. This is not an argu­ment against adver­tising. Indeed, if not for adver­tising it would be very dif­fi­cult to learn about new prod­ucts and ser­vices or to become informed about our options in the mar­ket­place. Addi­tion­ally, brands are car­riers of social and cul­tural mean­ings and often pro­vide con­sumers with tem­plates to help con­struct their social iden­ti­ties. There’s no doubt this is an intriguing and chal­lenging time for adver­tisers, and tech­nolo­gies like Auto Hop may just accel­erate the inno­va­tion process.