TiVo Gets New Interactive Advertising

By Ed Oswald, BetaNews

July 18, 2005, 12:22 PM

TiVo announced on Monday it was making available a new advertising format that would allow a company to trigger a customized "call to action" on the the DVR device that would pop up when the unit detects a participating advertiser's commercial.

The first companies to participate in using the technology will be General Motors and the WB Television network.

Previously, TiVo had only offered long-form advertising through a special option that would appear on the system's main menu from time to time. However, with the upgrade, advertisers would be able to take advantage of this feature from within commercials, as well as allow subscribers to send their contact information to advertisers.

This approach will still allow the TiVo subscriber to skip over commercials if they so desire, while giving advertisers a new method to entice DVR viewers to stop and watch their commercials.

The company had been testing another form of advertising similar to pop-up ads when consumers fast forwarded through commercials back in March, but it may have shelved the idea following numerous user complaints.

"TiVo's proprietary advertising technology presents a real opportunity for advertisers to enhance the effectiveness of traditional television advertising," David Courtney, TiVo vice president and CFO said in a statement. "Our platform enables advertisers to reach an attractive demographic."

General Motors had used TiVo's old system of long-form commercial delivery for years, and says it will extend its partnership with the company to the new ads. The feature will be used in commercials for its OnStar, GMC, Chevrolet and Saturn brands.

The WB will use the technology in conjunction with advertisements for new shows on the network. Using the thumbs-up key on the TiVo remote, viewers would be able to record a show or the entire season.

"Companies today are spending an estimated $60 billion a year on broadcast advertising. Ours is the only DVR to effectively enhance traditional TV advertising via a branding and direct response platform," Courtney said.