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That "bloop-bloop-bloop" you hear is the collective fast-forwarding over the commercials as households with TiVos (NASDAQ: TIVO) or other digital video recording (DVR) devices zoom through the ad breaks. A recent article in the Los Angeles Times reports that with DVR use on the rise, the Nielsen ratings group has started to monitor how American television watchers view commercials.
Advertisers have been claiming of late that the increased use of DVRs cuts down on the actual viewing of commercials. With fewer eyes ostensibly on the advertising messages, many feel that the cost for air time should be reduced. This month, with May sweeps on the books, networks and advertisers begin work on contracts for the fall season, so these fresh Nielsen numbers may be used as a bargaining chip to calculate ad rates for prime-time space on the major networks. Last year, advertisers pledged $8.75 billion in commercial-spot dollars during the "upfront" sales season. Current expectations are for this figure to decline this year.
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