As noted above, advances in television technology offers marketers tremendous insight into viewers’ habits and behavior. Yet from the consumer side, the DVR and other on-demand services, such as Netflix, not only allow people to watch programming at a time that is most convenient for them, it also offers consumers to ability to skip over commercials or watch programming that does not contain ads. Ad skipping is particularly an issue for broadcast networks that rely on advertising to pay for programming. Additionally, advertisers are becoming more concerned when advertising online. In this medium, ad blocking has become a major threat. Software for blocking ads can now be easily installed on computers, tablets, and smartphones.
As more consumers adopt ad skipping and ad blocking features, advertiser’s concern with whether they are getting the best value for their television and online advertising money may become a major issue. This may lead them to invest their promotional funds in other media outlets, where consumers are more likely to be exposed to an advertisement.