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.

Streamed TV Proves a Hit – with Traditional Advertising Surely its Casualty

Feb 12

Streamed entertainment is proving to be a popular hit with UK viewers. But what does this mean for advertisers now that more people are skipping the ads? Step in Product Placement: the advertising alternative that won’t become a casualty of the fast-forward button.

ITV Player, BBC iPlayer, 4oD and other TV and film streaming services are, according to KPMG research, becoming more ‘mainstream’ in the UK, with more users willing to pay for them.

The audit and tax advisory giant’s bi-annual Media and Entertainment Barometer, based on a YouGov survey of just over 2,000 Britons aged 16-plus, revealed the popularity of streamed TV, especially amongst the younger generation. 90% of those surveyed in October 2011 were aware of BBC iPlayer; 79% had heard of ITV Player and 65% knew of LoveFilm. 68% actually used the BBC’s streaming service, a rise of 5% in six months, and 36% were regular users of ITV Player, up 4% in six months.

Britons Increasingly Willing to Pay for Streamed Entertainment

The study showed that Britons are increasingly willing to pay for streamed entertainment; 30% will fork out for paid TV content and 64% for films.

David Elms, head of media at KPMG said: “Not only is awareness and usage of streaming high, but willingness to pay for content has increased too.”

So with the rise in popularity of ‘viewer-controlled’ entertainment, brands will surely be seeking an alternative advertising strategy that is safe from the fast-forward button. This is where the benefit of embedded advertising comes into its own: where brands become part of the entertainment, rather than a tea-break phenomenon, or a casualty of the ad-break skipper.

Report Shows Positive Attitude to Product Placement

Feb 07

The Journal of Management and Market Research report we mentioned in our last blog has come up with some statistics that show a positive attitude to product placement. According to the report, 60% of viewers see placed brands in a positive light and 2010 figures showed 75% of shows contained branded content.

The report went on to question the economic value of product placement advertising. One study, by Wiles and Danielova, uncovered evidence that product placement in a popular film is connected to a rise in brands’ stock prices.

Product Placement can Boost Brand Awareness by 20% 

The report also quotes that, according to Nielsen Media Research, product placement in television shows can boost brand awareness by 20 per cent and Tsai, Liang, and Liu found heightened brand awareness leads to better recall and a stronger intention of buying.

Viewers are in favour of placed brands providing they add realism to a scene. Snoody commented that because day to day life is so inundated with brands, seeing them within TV programmes or films adds to the sense of reality. 

In general says the Journal’s report, attitudes toward product placement are positive across media types.