Advertisers will flock to TiVo as it gains more subscribers, said TiVO CEO Tom Rogers during the company's Q2 earnings conference call, writes Adweek (via MediaBuyerPlanner). The company reported that it generated $40.7 million in revenue in the quarter, with $240,000 in net income - the company's first-ever profit. "We are building toward a scale base that will allow advertising revenue to become a significant contributor," Rogers said.

TiVo, which has 35 advertisers, plans a major marketing push this fall to build its subscriber base in anticipation of DirecTV's plan to stop marketing TiVo and start marketing its own DVR. Comcast is set to begin selling TiVo to subscribers in 2006.

TiVo has introduced an ad-tagging feature that allows sponsors to embed an interactive tag into their commercials, allowing viewers to interact with their spots. Ameriquest, E*Trade and General Motors are running commercials using the tags.