With consumers increasingly trying to avoid advertising through commercial-zapping devices such as digital video recorders or pop-up ad blockers online, media people are becoming more creative in coming up with ways to get their message across. One tactic that’s become popular is integrating the product into entertainment media such as TV and movies. Product placement has exploded over the past few years, especially on television, but a new study from BIGresearch finds that there are big variances in the effectiveness of product placements, with some working a lot better than others, depending on the audience. Plus, other forms of media still fare better overall. According to the study, TV, newspaper inserts, radio and internet advertising are all more effective than product placement. Yet for certain advertising categories, such as electronics and apparel, product placement holds a surprising amount of sway over black, Asians and Hispanic consumers. While 12.6 percent of all consumers said product placement influenced their purchasing decisions for electronics, 21.6 percent of Asians, 17.9 percent of African Americans, and 17.7 percent of Hispanics said it did. For apparel, all three groups were at least 2.4 percent above the average for all ethnic groups. Gary Drenik, president of BIGresearch, talks to Media Life about why product placement plays better with minorities, how it can be used most effectively, and why advertisers need to be careful with it.
What did you find most surprising about this study?
The differences of influence for product placement between the various ethnic groups and overall impact of product placement for influencing consumers to purchase.
You found several minority groups, such as African Americans, Hispanics and Asians, were more likely to be influenced to buy electronics, grocery and apparel items from product placements. Why?
This is a social validation issue. These groups consume more media and may view product placement as a way of determining which products are “cool” and become “must haves” for their peer group.
Why is there such a disparity between which products make successful placements and which don't?
Vanity-type products that are purchased for social validation, such as cell phones, apparel and beauty, showed as the best product placement performers.
How much of it depends on how the product placement is done -- that is, whether audiences feel manipulated or not?
Good product placement needs to be more than a commercial outside of a station break and inside the program content. More creative uses of product placement need to develop or else they will be irrelevant and ignored.
Keep in mind that 92 percent of consumers say they are regularly or occasionally avoiding advertising and upwards of 78 percent report multitasking when using various media, so there is a good chance any product placement will be missed, except in movies.
Are there any products that simply never will make good product placements?
Personal hygiene products, household cleaners, lawn care. Consumers are aware of when they are being pitched, and poor product placement creative could potentially affect how the program content is viewed.
How can advertisers keep audiences from feeling manipulated by these placements?
Seamless integration within the program content that complements the content and enhances the user/viewer experience.
A classic example of product placement that complements content is the movie “ET” and the Reese’s Pieces scene.
A more recent example is Eva Longoria restarting her modeling career on “Desperate Housewives” and having to be a model for the new Buick in a local shopping mall.
An example of poor product placement is the movie “The Truman Show,” where Ovaltine is shamelessly promoted, even though the movie was satire.
Does the influence of TV product placement depend at all on what type of show -- sitcom, reality, drama -- that it airs in?
We didn’t analyze this, so I don’t want to speak “off the cuff.”
How does product placement compare with other media's influence to purchase products where product placement does best, like electronics?
Out of the 21 different media options that we track (traditional and new media), product placement is 12. It is a viable option but not a substitution for other media forms. With marketers focusing on increased return on investment, product placement needs to be viewed as an option which can be integrated with other media to drive sales.
What's the most important thing media buyers and planners can take from this study?
Product placement for product placement’s sake won’t work. The overall impact of product placement on purchases (ROI) isn’t equal to traditional media. Simply sticking a soft drink in an actor’s hand or having them drive a particular car may provide some awareness, but unless it adds value to the content, it may not have much impact.
