Increased Tablet Sales Spark Need for Innovative Advertising

May 07

iPads and other tablet devices have shot up in popularity over the last couple of years, thanks to their flexibility and interactivity over a laptop or mobile phone.

Brands have, as a result, found themselves having to consider innovative marketing techniques to target this new demographic which, according to research, is likely to engage more actively across multiple media platforms than the average consumer, including with product advertising.

Tablet Owners Shown To Spend More Online

A study by Total Media found the average UK tablet user spent £97 online over a period of three months, compared with the national average of £79. Because tablet users are more likely to watch video clips, catch-up TV and films, there is huge scope for brands to boost attention by way of product placement.

Product Placement: Seamless Advertising for the Digital Age

The majority of consumers who own smart phones and tablet devices will not respond well to advertising in the traditional sense. However, over in the USA, the spend in mobile ads is set to go up to a whopping $20.6 billion this year. This is due to an increase in interactive ads which engage the user. Banner ads are seen as a nuisance for most tablet owners, however ‘ad-like objects’ which act as natural pieces of content are providing the same promotion without disrupting the user experience. This is precisely why product placement is set to move forward at a rapid pace in line with the boost in tablet use.

70% of Tablet Owners Shop While They Watch

Tablet owners tend to shop as they watch TV, and, according to research by Shopzilla, 70% of USA-based consumers who own tablet devices do this. A recent Nielson report revealed that 42% of American tablet owners use their tablets while watching TV, with 29% looking up specific information relating to the TV programme they are watching at the time. With tablet ownership numbers in the UK rising all the time, this opens up some huge opportunities for brands to engage with product placement as the most effective means of getting in front of their audiences.

UK Tablet Sales Rise 23% in Four Months

According to Google’s EMEA mobile sales chief Ian Carrington, sales of tablet devices could overtake desktop computers by as early as 2015. Since Christmas 2011, sales have surged a massive 23% with 38% of tablet owners stating that they use their device more than their TV – making it their primary method of media consumption. “When people search on tablets, they are more likely to buy than on desktop because the experience is so much better [when sites are optimised for such devices],” said Carrington.

With stats like these and many UK consumers already engaging with tablet technology, advertising within media content simply has to provide a successful new marketing match with these technological advances.

The Reality of Product Placement

Apr 21

Product placement in prime time TV shows is certainly gaining momentum worldwide, and now it seems reality TV shows are becoming the newest vehicle for this alternative form of advertising.

In 2011, an Australian study, compiled by social insights specialist Julie Houston, found that 94% of viewer purchasing behaviour has been influenced by what they have seen on a reality TV show. From over 400 participants, 60% had bought a product after seeing it on a reality show, while 20% had even travelled to a new destination after seeing an endorsement from a reality series. Reality TV is becoming increasingly popular with more people tuning in to reality shows today than ever before. In this sense, it’s no surprise that product placement advertising has found a new outlet in competitive or community based programming.

Brands Reaping Benefits

In the UK, where product placement on TV shows is a relatively new concept, reality shows such as Big Brother are already cashing in on the development. In the 2011 Celebrity Big Brother house, many of the kitchen and electrical appliances used in the show were supplied by brands like Belling. Heat magazine subsequently ran a feature encouraging their readers to ‘Get the look’ by showing pictures of the products used within the house alongside details of where to purchase them.

Popular reality series The Only Way is Essex is currently sponsored by PlayStation and Ann Summers, and may begin to feature products from both brands in later episodes. ‘TOWIE’ already affords heavy publicity to Essex-based bars and nightspots in each show.

Reality TV Streets Ahead of Scripted Shows for Product Placement

In America, a report released by Nielson showed that reality TV shows are streets ahead of their scripted counterparts when it comes to product placement. In 2011, American Idol took the lead with a whopping 577 occurrences of product placement across 39 episodes within the year. As one of the most watched shows in the USA, there is no doubt that the brands which featured heavily in the show profited enormously from the placements.

Following close behind was competitive weight-loss show The Biggest Loser, with 533 instances of product placement across 34 shows. Of the top ten list of primetime American TV shows featuring heavy amounts of product placement, only one of them was not a reality show: Friday Night Lights, a drama series about small townTexas football players, which featured brands such as Costco, Gatorade and Ford across its 13 shows.

Why Does Reality TV Product Placement Work?

There’s good reason Reality TV has become such a popular way for brands to advertise: it offers the flexibility that scripted shows can’t provide. Instead of trying to come up with creative ways to fit products into complex plots and character developments, reality TV shows can happily feature any number of brands with no conflict of interest.

Because the shows mimic everyday life, participants are seen eating, drinking or using products - naturally. There is no better way for a brand to advertise than by showing viewers its real life benefits. In this sense, reality TV is the perfect vehicle for embedded advertising – encouraging consumer engagement in a natural and ordinary way.

Seven in Ten UK Consumers Aware of Product Placement

Mar 25

Since Ofcom’s decision to allow product placement, perceptions of this marketing method on UK TV have changed. A YouGov poll, taken at the end of February 2011 shortly after the decision was made, found that over one third of respondents had no idea what product placement was. However another poll, taken in July 2011, found that nearly three quarters of respondents (72%) knew what product placement was, with nearly half (46%) stating that real brands placed in TV programmes can make them seem more realistic.

Since February 2011, there have been less than 20 examples of product placement advertising in UK TV programmes. However, despite a slow start, the product placement market in the UK is estimated to be worth up to £120m in the next five years. Adele Gritten, head of media consulting at YouGov, said: “There appears to be a gradual acceptance taking place as people see product placement more and more. We’re all consumers of brands, and as long as placements aren’t too overt, it’s very realistic for us to experience the same household brands in the programmes we watch.”

Big Names Come To UK Living Rooms

Nescafe’s £100,000 deal to feature a Dolce Gusto coffee machine in ITV’s This Morning was the first example of product placement advertising on UK TV in February 2011. Research from Otherlines.tv claims that 40% of viewers said their interest in buying the product increased after the placement was shown.

Not long after, in April 2011, Microsoft’s Kinect Sports featured prominently in the title sequence of Sky One’s sports panel show A League of Their Own. In June 2011, UKTV signed a deal for a factual series with FindMyPast.co.uk, featuring members of the public using the website to find out about their family history – the first factual TV show in the UK to feature product placement advertising.

Product Placement Doesn’t Spoil Viewing, Claims the Public

Of those surveyed by YouGov in July 2011, 59% said they did not have a negative experience of product placement and claimed that it made no difference to their viewing experience. 33% of those polled disagreed that product placement advertising negatively impacts the integrity of a TV programme.

The poll also showed that young audiences, aged 18 to 34, were the most likely to form a positive impression of product placement, with 25% of those aged 18 to 24 stating their brand perception would become more positive if seen in a UK TV Programme.

So despite it being early days for product placement on UK TV, these positive reactions show it could prove very lucrative for brand advertisers.

Product Placement set to Flood China Movie Market

Mar 13

China’s national ban on commercials during TV dramas drew much attention when it hit the headlines in January this year. And now, perhaps as a result, all eyes seem to be on a relatively new concept in Chinese marketing – product placement.

Mobile security software firm NetQuin is set to feature its products heavily in upcoming gangster film, Du Zhan; a lucrative move in the already-booming mobile internet industry.

The Rise and Rise of Product Placement in China

In China, product placement has only been used frequently since the early 2000s. However, the industry is now expanding at up to 40 per cent every year, banking an estimated $10 million in profit in 2010. Hit Chinese TV series such as Meteor Shower and Unbeatable feature extensive brand placement, the latter showing obvious plugs for anti-dandruff shampoo, Clear. And far from being a hindrance to the popularity of the shows, the clever combinations of star actors, quality production and sophisticated ways of weaving brands in with plot has boosted the popularity of the shows, with Unbeatable 2 garnering an amazing 100 million online hits in two weeks.

‘The Advertisement King’ Breaks Box Offices Nationwide

It’s not just Chinese TV shows cashing in either. Famed Chinese director Feng Xiogang is such a fan of product placement advertising that he won himself the nickname of ‘The Advertisement King’ for his use of it in his films. 2004’s award-winning World Without Thieves covered its entire cost of production with earnings from product placements, while 2008’s If You Are the One and its 2010 sequel featured over 35 brands. The films smashed the box office, proving Chinese audiences are certainly not fazed by embedded advertising and don’t let it stop them enjoying a good film.

Upcoming film, Color Me Love, is set to feature upmarket brands such as Apple, Diesel, Cartier and Versace, showing the potential of product placement to advertise upscale products in China, where over half the country lives in rural areas. The increasingly popular method of advertising Chinese products seems to be just as popular in Hollywood, with hit US film Transformers: Dark of the Moon heavily featuring Chinese brands, such as Lenovo laptops, TCL electronics, Metersbonwe apparel and dairy giant Yili’s Shuhua milk.

Chinese Audiences Receive ‘Good Impressions’

Whilst Chinese audiences are not oblivious to product placement advertising, they’re certainly not put off by it. Creative moves to push brand awareness with product placement advertising are increasingly commented on positively across social media networks, with movie-goers describing ‘good impressions’ of the products. The noticeably positive reaction to the brands has been more than accounted for in sales, with Clear shampoo’s market share rising significantly with the broadcast of TV series, Unbeatable.

Product placement advertising in China has huge commercial potential to promote everyday products as well as new tech or luxury brands. With the new limitations on the airing of commercials, it’s likely that embedded advertising will be an innovative solution: one that will continue to go from strength to strength in Chinese media.