That “don’t worry about DVRs, they’re great for our business!” line the TV networks have been spinning? It just got even harder to believe. A three-year study found that homes with DVRs buy fewer brand-name packaged goods — presumably because they’re seeing fewer ads for said goods.
Research group Information Resources Inc. says spending dropped by as much as 5% in homes with DVRs, and that the drop affected up to 20% of brands advertising on TV during the study.
Ad Age does try to offer some reassuring analysis from the results — at least for advertisers. Marketers that spend a lot of money advertising beyond TV did just fine. Message: Ads work — just not TV ads.
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