TiVo has announced an advertising and market research deal with Omnicom Media Group in the wake of better than expected 2nd Quarter financial results.
TiVo's newly created Audience Research and Measurement (ARM) unit will be the focus of the partnership with Omnicom's OMD and PHD, which will purchase data from TiVo and study its users' behaviors. Omnicom will also buy advertising from TiVo at preferential rates. TiVo previously signed a similar multimillion dollar deal with Interpublic Group.
TiVo aims to help "advertisers engage the consumer while allowing subscribers to maintain control of their television entertainment experience," said TiVo Chief Executive Tom Rogers.
Meanwhile, TiVo reported a quarterly loss of $6.45 million, or 7 cents a share, up from $892,000 or a penny per share in the same period of 2005, mainly because of costly legal actions related to its DVR technology patents; analysts had anticipated losses of 14 cents a share. Revenue for the quarter increased 50 percent, to $59.2 million, from $39.3 million a year ago. TiVo's subscriber base grew slightly to 4.4 million.
TiVo hopes to use its ARM unit to attract advertisers with large amounts of consumer data, which can be segmented down to the second. Partnering with top ad agencies will likely help gain the trust and attention of advertisers.