The Advertising Impact of an Interactive TV Program on the Recall of an Embedded Commercial

Verolien Cauberghe
University of Antwerp

Patrick de Pelsmacker
University of Antwerp

Interactive Digital TV (IDTV), the merging of the internet and TV, has been launched in most Western countries, with the potential of reaching many consumers (Lombard and Snyder-Dutch, 2001). In spite of its growing popularity, this relatively new medium technology has received little academic attention (Kang, 2002; Kim and Sawhney, 2002). IDTV in its essence combines broadcast content (multimedia content) with interactivity. This “hyper-multimedia” content can be distributed via cable, satellite, or broadband (cf. Internet Protocol TV, IPTV) networks and can be exposed on different end devices, such as a TV or a PC. Independent from which network or end application is used, the relatively new IDTV technology makes the broadcasting business model, which is (partly) based on advertising revenue, unstable. The introduction of IDTV's associated applications, e.g., video on demand and the personal video recorder that blur the line between a TV and a PC, introduces severe threats for advertisers, given that these technologies make it even easier than before for consumers to skip commercials. Therefore, broadcasters and advertisers are searching for strategies to ensure future revenue streams (Wirtz and Schwartz, 2001).