For years, advertisers have been looking for a better way to marry television and shopping. While channels like QVC and HSN have accomplished this to some extent, they’re not instant or interactive and they require users to actively choose to watch a shopping program. Shooting for something more subtle, TiVo – the same company that once threw a wrench in television advertising – is now working with Amazon.com to turn the remote control into a shopping tool.
TiVo recently introduced its new Product Purchase feature, which gives TiVo users the ability to purchase products from Amazon.com just by pressing a few buttons on the remote control. If an individual is watching “The Oprah Winfrey Show” and an author appears to talk about a new book, the viewer could instantly purchase that book through the TiVo system without getting off the couch. TiVo even records programs while viewers order so they don’t have to miss a minute of a show.
Initially, the Product Purchase feature will be incorporated into a limited number of programs, including “Oprah”, “The Ellen DeGeneres Show”, “The Colbert Report” and “Burn Notice”. Users also will be able to use TiVo menus to search for products being sold through the system. Buyers can opt to purchase a product immediately or add it to an Amazon.com shopping cart for later. When making an instant purchase, shipping and handling charges are added and the total is presented onscreen for final confirmation. For security, a user must enter his or her Amazon PIN before checkout can be completed.
For advertisers, this feature enables them to market products (at least, products sold on Amazon) on any broadcast or cable network or any TV show. It lets them target viewers with products related to specific shows and genres – making it easier to reach the right audience. TiVo’s interactive advertising solution also allows advertisers to reach viewers as their interest in a product is at its peak. Best of all, it gives viewers a way to take immediate action. This helps solve the age-old TV advertising problem: even if the message gets across to viewers, will they remember it later? With TiVo’s new service, viewers can act instantly – which is a great thing for advertisers (if not so much for impulsive consumers).
The Product Purchase feature is an attempt by TiVo to evolve from a producer of set-top boxes to an advertising innovator. The move is certainly an ironic one since TiVo’s very existence has created a roadblock for advertisers by enabling viewers to fast forward commercials. But part of the reason for the shift may be that the TiVo box never grew into the television revolution people thought it would be when it first emerged nearly a decade ago. Currently, TiVo is only in around four million homes – not exactly a juggernaut. With increasing competition from cable-box DVRs, TiVo has begun to explore other avenues – like licensing its software and, now, creating new advertising applications.
“Just a few years ago, we were viewed with great paranoia as the disruptor,” said Thomas S. Rogers, chief executive of TiVo. “Our goal now is to work with the media industry to come up with ways to resist the downward pressure of less advertising viewing and create a way for advertising on TV to become more effective, more engaging and closer to the sale.”
TiVo DVR boxes can be purchased for anywhere from $149.99 to $299.99, and individuals can contract service plans for $12.95 per month (or $399.00 lifetime).
