The Competitive impact of targeted television advertisements using DVR technology

Bikram P. Ghosh, Michael R. Galbreth, Guangzhi Shang

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

Digital video recorders (DVRs) are an emerging technology that is fundamentally changing the competitive landscape in industries that advertise on television. Perhaps the most familiar impact of DVR technology is that it enables consumers to avoid advertisements (ads) by fast forwarding through them. However, this "zipping" of ads is only one aspect of the impact of DVR technology. DVRs also collect a wealth of information at the consumer level that can be used by firms to target their ads more effectively. We examine how this targeting capability moderates the impact of ad avoidance in a competitive setting. Insights are provided on how best to manage this emerging technology in terms of the key managerial decisions of product pricing and advertising efforts, as well as its impact on profits in a competitive (duopoly) marketplace.

Original languageEnglish (US)
Pages (from-to)951-971
Number of pages21
JournalDecision Sciences
Volume44
Issue number5
DOIs
StatePublished - Oct 2013
Externally publishedYes

Keywords

  • Ad Skipping Behavior
  • Digital Video Recorder
  • Product Competition
  • Targeted Advertisements

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Strategy and Management
  • Information Systems and Management
  • Management of Technology and Innovation

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