Product placement has been growing on television for several years, and so is its influence over consumers. Interestingly, some of its greatest impact seems to be on minority groups, according to a new study from BIGresearch. The Worthington, Ohio, consumer research company found that product placements have the most influence on grocery purchases, with 14.8 percent of consumers citing them, up from 13.0 percent one year ago. The other top-three categories were electronics (13.2 percent, up from 12.8 percent) and apparel (11.5 percent, up from 10.3 percent). In each category, Hispanic, African American and Asian consumers were much more likely than white ones to be influenced by product placement. Dianne Kremer, a market analyst at BIGresearch, talks to Media Life about why media influence has grown, which product categories do best, and why minority groups are more responsive.
What did you find most surprising or most interesting about this study?
The differences in influence to purchase among various ethnic groups and the overall impact of product placements on varying category purchases is very interesting, given the way product placements are now being used.
What is the most important thing media buyers and planners can take from it?
The simultaneous media survey reveals that media buyers must be cautious when allocating their budget dollars to different media forms. Since consumers use many different types of media, and often use it simultaneously, marketers must be careful to use a varied media approach in order to influence consumers.
Product placements have become a viable option when used in combination with other media forms.
Why has product placement influence grown year to year? How much of it is simply a reflection of the growing number of product placements?
First and foremost, there is simply more of it now, as marketers are constantly experimenting with new ways to increase ROI. Product placements have become more sophisticated and can now be used subtly as part of the story/content of TV shows.
Which product categories see the biggest influence from product placement? Why?
The grocery (food/cleaning/beauty) and electronics categories generally do well with product placements. Vanity-type products such as beauty products, apparel and small electronics are often the best product placement performers because they are purchased for social validation.
You found that minorities are often more likely to be influenced by product placement, especially in certain categories, such as electronics, groceries and apparel. Why is that?
It is most likely a social validation issue. Minority groups consume more media and may view product placement as a way to determine which products are “must haves” for their peer group.
Which ethnic group is most likely to be influenced by product placement overall and why?
Media influence is dependent on the product category. In the electronics category, African American consumers are most likely to be influenced by product placements, while Asian consumers are most likely to be influenced in the apparel category.
There is no “one size fits all” rule when it comes to media influence, and marketers must strive to understand that.
What are some of the pitfalls for media people in pursuing product placement?
Product placements must be creative, and marketers must be sure the placements enhance and complement the content of the program. Poor placements, where the product is shamelessly promoted, will never work. Consumers are smarter than that and realize when they are being manipulated.
Media buyers must also realize that while product placements are a viable option for a varied-media approach, they aren’t a substitution for more traditional media formats.
How do consumers react when they think they're being manipulated by product placement?
Since the majority of consumers report they regularly or occasionally intentionally try to avoid advertising, consumers will likely ignore the product all together and view the program content more negatively.
