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Dvr advertising revolution

November 28, 2003

Nike’s new web-based game, gridiron, is another example of the recent increase in elaborate, high budget pieces of branded content.
Click to launch Nike Gridiron

As DVR (digital video recorder) technology gets cheaper and becomes a standard feature built into televisions and PCs, the effects on advertising will be profound. In a few years, instead of ads having to entice channel surfers from clicking away, brands will have to entice consumers to voluntarily seek out their content. Channel surfing will be replaced by the ‘store and omit’ model as consumers will set up their systems such that they will have to actively choose not to omit commercials in order to view them. Marketing budget allocation will shift from broadcast media spending to more and more production spending as quality and creative matter more in attracting viewers.

This evolving advertising model presents a huge opportunity for companies, and particularly for challenger and new entrant brands, to ride the frontier of branded content. Brands in even the most unlikely categories will find themselves as full-fledged entertainment and media companies as the 30-second model gives way. Marketing history has shown that incumbents lose in a period of discontinuity because they resist destroying their business models. The new winners will adapt faster than the sluggish market leaders. They will innovate the next generation of ways to link the experience of a brand to emotion through interactive and film entertainment.

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