Author » Aaron KennedyExecutive Vice President

The Price of Commercial Avoidance

Posted by Aaron Kennedy on Thursday, March 04, 2010 at 8:30 AM  |  More From This Author »
Pardon the Interruption
A fundamental principle of television advertising is on the ropes; the rule of interruption. It worries me. Not so much because it causes concern for my chosen profession (advertising). Rather, my greater worry is my role as a consumer that values quality content.

It used to be that consumers had an informal agreement with the advertisers: I get to watch your shows or events at no or little cost and, in exchange, I’ll mostly watch a message about a product that helps you pay for producing the content I am interested in. It was a pretty direct arrangement, barely noticeable to most consumers on most days.

Consumers enjoyed no or low-cost access to their favorite comedies, dramas, games, news and more.

Advertisers liked talking to people about products while they were engaged in something that interested them (the rule of interruption).

Content providers could afford to develop and produce quality programs, staff news bureaus and provide coverage of live sporting events.

Commercial Avoidance
However, as consumer preference and technology continue to evolve, the old agreement continues to be under pressure. With one low-cost DVR, my family can watch American Idol, Lost or Monk at a time that is convenient for us without having to sit through commercials. Or, more savvy consumers can turn to any number of online platforms (with greater mobility) that will serve up their favorite programs with only a very brief commercial message at the onset of the experience. With each passing month, the practice of commercial avoidance is fast becoming a way of life. Consumers can watch their favorite programs without having to pay the commercial toll.

Something Will Need to Change
If the trend away from watching commercial messages continues, something will have to change in the not-so-distant future. A published study from Magna in late 2008, projects that DVR penetration will swell to 37% of all households by 2012. Additionally, certain genres of programming (like action and sci-fi dramas) have higher DVR playback. The assumption many advertisers make (and it is an assumption that I agree with) is that DVR playback means “commercial avoidance.” In turn, the advertisers will “avoid” supporting these programs with advertising contracts, which will begin eroding the funding needed to develop quality programs – equating in an ever-expanding portfolio of low-cost, low-quality content (reality programming).

If these trends continue to build, I struggle to see how the current arrangement can be sustained. While an occasional tune-in for Celebrity Rehab is a guilty pleasure from time to time, I shudder at the thought of this kind of genre taking on a bigger role in the future.

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