PoliTech Spotlight: DVR Targeting

No election cycle passes without some innovation becoming the latest "it." This year, it could be DVR/TiVO on demand advertising "Showcases."

If you don't have a TiVO or DVR, go buy one. And go to the "Showcases" menu and imagine scrolling through a list of TV ads.
-- Since DVR advertising isn't bound by the same constraints as TV or radio, campaigns can run spots of up to 60 minutes and let viewers decide which messages they'll watch. Comcast has even established a clearly recognized "Election 2006" link, uniformly positioned in all 22 available markets.

One can see clear benefits for low-budget campaigns and low-budget interest groups to, as Comcast puts it, "elaborate on their causes." As for the negative messaging potential: Could this be the latest McCain-Feingold loophole?

And, of course, the demographic gathering capabilities of DVRs will make those into micro-targeting go into spasmic excitement.

Of course, not everyone can hold audiences beyond 60 seconds. It's going to take a unique campaign to break through before "it" goes mainstream. But as voters demand more context, one can see this medium growing. [AOIFE MCCARTHY]

When Digital Video Recorders hit the market, with TiVo leading the way, viewers for the first time had the option to skip every commercial, streamlining their television viewing and launching concern that this could mark the beginning of the end for standard television advertising. What is happening instead is that a new window in advertising has been opened, offering a new stage from which campaigns can launch their message. In this new medium it is not TiVo, but Comcast On Demand leading the way, courting political campaigns to advertise to DVR viewers and offering some attractive reasons why their market should not be missed. While there is little danger of DVR advertising posing a threat to the standard broadcast/cable buys, this could be for '08 what Podcasts were
to '04.

Comcast is selling On Demand political advertising as an environment for candidates or advocacy groups to "elaborate on their causes." Since DVR advertising is not bound by the same constraints as television or radio, it allows campaigns to run spots of up to 60 minutes and gives viewers the freedom to decide which messages they are interested in watching. Comcast has even established a clearly recognized "Election 2006" link, uniformly positioned in all 22 available markets to make it accessible to the viewer when they want. Candidates and issues who purchase a "Showcase" through Comcast will own and name a dedicated button found directly under the Elections 2006 button, offering the ability to accommodate multiple spots. The Showcase video will also be double mapped, allowing access under the specific race or ballot measure as well as through their named button. A secondary option, a "Feature," offers space for a single message from two to 30 minutes in length. Viewers could access these smaller features only within Elections 2006.

According to Comcast marketing data, "the combination of spot cable advertising and On Demand presence is a solid plan for effective exposure reaching targeted audiences." Dem strategist Joe Trippi notes that this technology could prove beneficial in targeting voters, and is certainly "something campaigns should take a look at." Particularly on the Congressional level where resources tend to be more limited, this could become a significant medium to access specific voters. Due to the capabilities of DVRs to track personal habits and information, a new means of targeting becomes available. According to Scarborough Data, 80% of On Demand viewers are registered to vote in their district of residence, 69% vote in local elections, 72% vote in statewide and 80.2% vote in presidentials. They tend to be more Dems (40.6%) than GOPers (34.8%) leaving 24.6% as independent or with no party affiliation. They tend to be homeowners and full-time workers. The gender split slightly favors men with 51% and the overall majority is married.

This type of advertising must also be appropriate for the candidate. The Nixon-Kennedy debates showed us that there is such a thing as a radio candidate and a TV candidate. As Trippi points out, the same holds true for a new media candidate. Not every candidate will be able to hold a captive audience for extended ad spots and of course, the candidate must "have something to say." Offering a hook such as volunteer opportunities or the ability to donate could push this beyond just an advertising tool, but also make it a means to build contacts and donor lists.

There are major hurdles that remain for DVR advertising, mainly the education of campaigns and media buyers that this is viable option. As Trippi notes, many political firms are still traditionally buying the four major networks. "It will take a major win from a pioneer campaign" for this to gain recognition, similar to the way the Howard Dean campaign launched the internet revolution.

The onus does not only lie in the hands of campaigns, but also media firms. Trippi notes this is a means for an "underdog campaign" to make a splash, but the ad itself must also be innovative and flashy. Creativity is what will bring mainstream attention to a DVR ad and increase the likelihood to get promoted on cable news networks. MediaCom director of broadcast research Jordan Breslow notes that while DVR advertising "does get a lot of attention, it is only in those homes" that have a DVR. Even with the DVR penetration on the rise, the market remains a relatively small niche.

Comcast just began the national rollout of their political On Demand advertising two weeks ago, and while interest has been stirred, we are still awaiting launch of the first political ad. According to Comcast Spotlight senior director of marketing for D.C. Steve Nicklin, the company is not only courting campaigns, but media buyers throughout the industry. While still in its infancy, the reception has been positive and Nicklin said it has spurred "a lot of interest." While Comcast has a great deal of faith in the success of On Demand breaking into political advertising (so much in fact that they are charging for the product, not treating it as an added value), they are also realistic in their expectations. '06 is setting the groundwork for the windfall of campaigns that they expect to jump on the bandwagon in '08. While it may be another two years until the major effects are seen, but the door has now officially been opened.