It’s no wonder that viewers do skip ads. But that it would have been practiced in such a scale was probably unknown even to industry analysts. And this new report from JupiterResearch will surely take away good night sleep from the TV industry czars. The worrisome report says the ad skipping trend via DVRs will cost networks $8 BILLION in revenue this year.
The study claims that 53% of DVR subscribers use their tool to skip television commercial and if the group keeps skipping commercials 100% of the time, cable and broadcast TV advertisers will lose out $8 billion of the estimated $74 billion ad market (expense for 2006).
What’s the solution out? The researcher recommends, now its time TV advertisers and networks develop advertising strategies and programming that would go in tandem with the capability of DVRs.