I remember first hearing about TiVo. It was in 2001 at the birth of the product introduction, and some in the advertising industry were talking about the inevitable end of commercial television. The industry was abuzz about this new technology that allowed viewers to skip through TV commercials. The TiVo revolution had begun.
   This was the next new technology that was predicted to replace the VCR, bankrupt advertising agencies, and revolutionize the ad industry. 
   After all, as TiVo users said at the time, once you use TiVo, you can’t go back. Being a TiVo user, I couldn’t agree more.
   It was also around this time that people were talking about the internet replacing television, and again, about the impending end of the TV commercial. 
   It didn’t happen.
   At that time, there were about 100,000 PVRs (personal video recorders – also called DVRs – digital video recorders) in use in the U.S. The predictions were that by the end of 2001 there would be a million in use, and by 2004 the number was predicted to be 10 million.
   Currently there are approximately 3 million to 4 million PVRs in use in the U.S., about 3 percent of the 102 million U.S. TV households. One million of these are subscribers to the TiVo service.
   This number will undoubtedly grow as the technology becomes integrated into digital cable and satellite systems. Consumer word of mouth about TiVo is rampant, and TiVo users themselves are the companies’ most fervent evangelists. 
   There are online user forums of TiVo devotees who possess a similar (as well as justified) passion as those loyal Apple customers. The latest predictions are that by 2008 TiVo will be in approximately 10 percent, or 10 million, U.S. TV households.
    And what about the current state of television advertising? 
   TV advertisers will spend tens of billions of dollars in 2004 in the US. The TV commercial is indeed alive and well.
   And still there are some who are predicting a quick demise to the TV commercial.
   Our industry is interesting in this regard. Sometimes we act as if people can’t wait for the next TV commercial, that they are watching television primarily for the commercials. 
   If that is so, then why panic? 
   Why are we afraid that people will skip through commercials if that is a major reason they are watching TV? 
   The fact is, consumers watch television because of content, and commercials are simply along for the ride. But there is a lot of potential power in those 30 or 60 seconds. Commercials have the ability to entertain as well as inform.
   I agree that companies should worry about viewers skipping over their commercials, but not because of TiVo. 
   They should worry because maybe their commercials just aren’t that good. What we should all work on is creating better ads. 
   We should make them more interesting and relevant to consumers without insulting their intelligence. 
   If advertisers present people with something compelling, the potential for intentional skipping would be minimized. Consumers might even record their favorite spots and watch them over and over again. Really. 
   Following this year’s Super Bowl, TiVo reported that more users viewed, recorded and replayed the Super Bowl commercials than the game’s highlights.
   This is known because every action a TiVo user engages in is being watched, noted and recorded by the company.
   That to me is more of a concern than whether or not viewers will skip through commercials.
   How this information is going to be used is under much scrutiny, and privacy advocates are rightly investigating TiVo and its use of consumer data.
   If TiVo knows a user's viewing preferences, and how they “consume” TiVo, an individual profile can be created specifically for that viewer.
   Customized messages potentially could be transmitted through TiVo, meant for that household alone--true one-to-one communication. This can either be viewed as positive – viewers get the information that is most relevant to them – or negative – Big Brother taking too bold of a step.
    This is what we should really be focusing on in the short term, not the commercial skipping.
    Interestingly, TiVo does have a 30-second skip feature. But it’s not a button located on the remote. It’s actually a hidden feature that consumers need to program manually. There are web sites that will show viewers how to do this, but chances are most won’t make the effort. 
   Viewers cannot skip commercials on live television. They can skip through a recorded commercial pod or fast-forward to their favorite parts of a show, similar to the fast forward function on a VCR. 
   The big advantage of TiVo is that users can “tell” it the shows they like and TiVo will record them (up to 120 hours on some models), without ever having to program it again. 
   This is far superior to VCRs given the limitations of videotape and the difficulty people have with programming their machines.
   When TiVo begins to reach 10 percent of U.S. households, then Madison Avenue may have a problem. 
   And we definitely better start talking about it now so we can make informed decisions in the future. 
   In the meantime, I have a few common sense tips that companies can use now to respond to the TiVo revolution.

- Know the facts. Television is still the No. 1 reach medium in the U.S. and will continue to be for the foreseeable future. The eyeballs are still there.

- Know your technology. Any new technology has an introductory period before a mass audience adopts it. Email, the internet, cell phones--all were used by a small group of early adopters long before they became mass-market products. The same is true for TiVo.

- Know your customers. And know their media habits. It sounds simple but is an often overlooked and under-funded component of a company's’ advertising plan. The consumer audience is fragmented by a myriad of media options. So…

- Utilize a media mix. Don’t rely on only television, or direct mail, or the internet or radio alone. People simply do not just consume one medium. An effective advertising plan should mirror a customer’s media habits. And while you are at it…

- Understand the strengths and weaknesses of each medium and use them for the purpose for which they were intended.

- Stop talking “at” your customers and start communicating “with” them. Engage them, nurture the relationship, give them something valuable. We owe it to them for stealing 60 seconds of their precious day.

    These are really just the “tips” of a large and complex iceberg. Properly analyzing and understanding the relationship people have with media--knowing when, where and what message to advertise--is not a simple process. It is necessary, however, in the ever-changing media marketplace, to know how a new technology like TiVo will impact a company’s advertising.
   Finally, regarding TiVo, one last tip is to go out and buy one. It’s virtually impossible to form an opinion about TiVo without experiencing it first hand. 
   Besides being able to appreciate a darn fine product, one that will change the way we watch television, using TiVo will help you understand what the viewer experience is all about.
   Knowing how this technology works from a user’s perspective is essential if decisions are to be made about reallocating advertising dollars.
   The TiVo revolution will certainly be televised-- and recorded--with commercials.
   So make them good. Make them TiVo-proof.