Nielsen Media Research announced the completion of its first ever Product Placement Valuation Study, and the availability of those findings to clients. Most interestingly, the study found that 57.5% of viewers recognized a brand when viewing a product placement in combo with a commercial as compared to 46.6% of those viewers exposed only to a commercial for that brand. Overall, the study demonstrates and quantifies the value that product placement contributes to traditional television advertising.
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. More than 10,000 individuals participated in the screening of 50 programs across broadcast and cable television, during which placements and commercials were featured for nearly 200 consumer brands. This survey is part of an ongoing series of Nielsen initiatives to measure viewers' exposure to all forms of advertising and determine their levels of engagement as part of its Anytime Anywhere Media Measurement initiative, also known as A2/M2.
An important objective of this extensive study was to look beyond a product placement's physical characteristics (e.g., position within a scene, duration, character interaction, verbal support, etc.) and examine how the context of a placement's execution -- including the viewer's loyalty to the program and familiarity with the brand -- could impact consumer response.
The study recognizes the need for advertisers to measure performance against more than one advertising goal. The study specifically examined brand awareness, brand attitude and purchase interest, and identified the key factors in attaining each of these goals.
Following are top level findings from the Nielsen Product Placement Valuation Study:
· 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. Specifically, 46.6% of viewers exposed to a brand in the form of a standalone commercial were able to recognize it, but that rate climbs to 57.5% when a product placement was combined with the commercial.
· 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. Whether the brand was presented as a product placement, commercial or both, a little more than one third of all viewers expressed high interest in the brands they were able to recognize.
· 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.
· Substantial variations in brand awareness, attitude and purchase interest were found to be impacted by the level of familiarity a viewer had with the brand, the genre of the program, a viewer's loyalty to that program, the exact nature of the placement, etc.
