Happy Commercial Day!

From Chas Edwards' post about Japan’s TV Ads: TV Ads Not Working:

Throughout August, 133 Japanese TV stations are airing commercials to promote the importance of…commercials. Japanese advertisers, like those in the U.S., worry about growing use of digital video recorders, now in 15% of Japan’s homes. By letting users skip ads, DVRs have knocked $489 million off the value of commercials to advertisers, says the Nomura Research Institute. To win back advertisers, the National Association of Commercial Broadcasters in Japan named Aug. 28 TV CM (commercial) Day.

Interesting to hear that Japan is way ahead of the US in DVR use (The US is at around 5%-7% right?) and this is their way of dealing with it.  Too bad I learned about Commercial Day a day after it happened, I would have bought my TiVo a gift had I known.

Comments

[Jason]

I love how advertisers claim the sky is falling. As if without commercials the populous would stroll about forgetting to buy toothpaste, beer and new shoes. They must be forgetting that more folks are spending more time online; they should direct more advertising in that direction.

Furthermore, the notion that commercials MUST continue to be produced at the current rate/cost is absurd. If viewers want them out of their lives, by choice--by DVR, so be it. I don't see many slide rules being manufactured in this post-calculator world.

The NACB (www.nab.or.jp/htm/english/english.html) in Japan is privately run, I can only hope that US advertisers don't freak out and run to congress to have the FCC impose some regulations to "enforce" commercial viewership, however that might work.

Finally, it's very well understood that much television programming (popular or not) is subsidized by the proceeds of advertisers. Lowered advertising payments to networks will simply mean that said networks will have to restructure their business. Perhaps offering more subscription-based content (HBO has experienced a boom if anyone hasn't noticed) and who knows how an internet distribution model might change things, perhaps cable and satellite providers will move to a'la carte channel lineups, the possibilities are still vast to work within a lowered budget.

[Jeff]

Enforced commercial viewing... Man, I hate what our gov can do.

[Jason]

I'm not sure they CAN do it, but I wouldn't be suprised if they tried given the weight of influence from a worried advertising lobby.

[max]

5-7% ?

I keep hearing different numbers on this, and projections based on analysis that assumes penetration in the teens.

Any trustworthy sources? - I'll try to compile some ranges if people can give me an idea of who they trust.