A NEW APPROACH
Researchers from Indiana University and Emory University published new research in the INFORMS journal Marketing Science which reveals the latest impact of product placement. The findings indicate that prominent product placement embedded in entertainment continues to have a strongly positive impact on online conversations and web traffic for the brand.
The study was authored by Beth Fossen of Indiana University, and David Schweidel of Emory University. From 2015 it covered more than 2,800 placements for 99 brands including those from Ford, Chevrolet, and Microsoft. The researchers measured the volume of online word-of-mouth mentioning of the brand and traffic to the brand’s web site following the product placement.
"Overall, our results support the notion that product placements can help marketers reach consumers who have become adept at avoiding traditional advertising exposure"
An important independent source of data for a branded entertainment industry that according to PQ Media increased by 14% in 2017 to $15.68 billion. Of that product placement in TV is the largest channel at $10.50 billion, product placement on digital platforms rose the fastest, up 26.7% in 2017.
“Overall, our results support the notion that product placements can help marketers reach consumers who have become adept at avoiding traditional advertising exposure,” said Fossen. Most interestingly; “One thing that producers should be careful about is overt inclusion of brands into scenes or content,” said Schweidel. “If the product placement does not fit and it interferes with the plot of the program, it could distract, irritate or spur a negative experience for the viewer.” Surely being able to reduce the amount of placement but making it fit the viewer directly is the way forward?
Yet all current methods of placement are fixed. Without identity marketing enablement such as that provided by Ryff, the danger remains that one person's acceptable placement becomes another's irritation. For the survey, 66% of the product placements were direct visual placements, while only 3 percent were audiovisual. Placements lasted for an average of one minute. On average, brands saw a 13% increase in Web traffic and a 16% boost in online word-of-mouth in the 10 minutes post-placement when compared to the 10 minutes prior to placement.
Luxury fashion platform Winkelstraat.nl analyzed more than 100 popular TV shows with at least 50 episodes, 30 of which were broadcast after 2000. They too saw positive results from integrating brands into the content itself. Of the top 12 shows with the most brand mentions, almost all cater largely to a female audience. In 2018, the season finale of ABC’s “The Bachelorette” was filmed at Shangri-La Villingili Resort and Spa, Maldives. Exposure from the reality show and subsequent press coverage have the potential to attract new guests to the Shangri-La location, and others around the globe.
With millions of viewers, pitching romantic destinations for The Bachelor franchise is big business. “The key is integration,” Mr. Schweidel said. “Audiovisual and verbal placements must be integrated into the story more so than visual placements, which may simply occur with the camera passing over the product. “We see that post-placement advertising can boost online word-of-mouth about the featured brand,” he said.
Meanwhile, in the UK last year for Love Island forget Jack and Dani. The real winner of Love Island was female fashion brand Missguided.
For eight weeks, young singles flirted, partied and lounged by the pool in a secluded villa on the island of Majorca off the coast of Spain. Millions of viewers tuned in six nights a week to see who had coupled up and who was getting “dumped” from Love Island, and downloaded the official Love Island app to vote for their favorite contestants. Many of the contestants’ clothes — when they were wearing any — were provided by online fast-fashion retailer Missguided. Viewers could shop their favorite looks, from animal-print bikinis to plunging embellished jumpsuits, via the app and on the retailer’s website.
And they did. Missguided says the reality television smash boosted sales by 40 percent compared with the eight weeks prior to when the show started airing. Some items worn by popular contestants — known as Islanders — would see an instant 500 percent sales bump.
Automakers are among the brands most likely to leverage product placement. Even luxury vehicles can be seamlessly woven into television narratives while still drawing attention to their performance and features.
Set in the near-future, Hulu’s drama series “The First” features a series of futurized Range Rover Sports created by the Land Rover Design team. While the show’s Range Rovers are creative props that will not be available for purchase, the product placement exposes the car brand to a wide audience.
Last summer, German automaker BMW returned to the silver screen as the exclusive automotive partner for the newest installment of the “Mission
: Impossible” film franchise. BMW cars and motorcycles have appeared in the action series since 2011.
In a recent survey of businesses in America, 66% reported that customer acquisition was their number one priority. If you want to get your brand on TV please let us know.