Daily Research News Online no. 6136 - Nielsen Media Reports Product Placement Findings

Nielsen Media Reports Product Placement Findings

November 15 2006

Nielsen Media Research (NMR) has today announced findings from its first ever Product Placement Valuation Study, part of its A2/M2 initiative. The research demonstrates and quantifies the value that product placement contributes to traditional TV advertising.

NMR found that 57.5% of viewers recognized a brand when viewing a product placement in combination with a commercial, compared to just 46.6% who were exposed only to a commercial for that brand.

The study, the largest of its kind, was conducted over a nine-month time span (October 2005-June 2006) at Nielsen Entertainment's testing facilities in Las Vegas, with more than 10,000 individuals participating in the screening of 50 programs across Broadcast and Cable television, including placements and commercials for nearly 200 consumer brands. The study looked beyond the physical characteristics of placements (position within a scene, duration, character interaction etc..) to its context in terms of the viewer's loyalty to the program and familiarity with the brand.

Top level findings suggest that:

'The reinforcement of a commercial spot with a placement for the same brand during the program is a very effective way to boost brand awareness.
The addition of a product placement to a commercial spot for the same brand does not appear to have an edge over a standalone commercial in terms of motivating viewers to purchase that brand, and
Product placements appear to be at least as effective as a commercial spot in improving viewers' general attitude toward a brand. Nearly 60% of all viewers felt more positive about the brands they were able to recognize in a placement.'

The study was conducted in conjunction with 14 charter subscribers: A&E, CBS, CourtTV, Discovery, FOX, Magna Global, Mediacom, OMD, PHD, Scripps Networks, Sprint, The Weather Channel, Twentieth TV and Zenith Media. Researchers from these companies form a steering committee which will continue to help NMR develop product placement planning methodology. David Poltrack, Chief Research Officer at CBS Corp., says the study 'demonstrates that product placement can represent a valuable enhancement to a media plan' but adds: 'More importantly, it also confirms that not all product placements are successful and it provides valuable guidance for the development of an effective product placement program.'

Nielsen Media Research is part of VNU's Media Measurement & Information Group and is online at www.nielsenmedia.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.