Nielsen measures the Impact of Product Placement.

Nielsen Media Research announced the completion of its first ever Product Placement Valuation Study, and the availability of those findings to clients. Most interestingly, the study found that 57.5% of viewers recognized a brand when viewing a product placement in combination with a commercial as compared to 46.6% of those viewers exposed only to a commercial for that brand. Overall, the study demonstrates and quantifies the value that product placement contributes to traditional television advertising.

The study, the largest of its kind, was conducted over a nine-month time span (October 2005-June 2006) at Nielsen Entertainment’s testing facilities in Las Vegas. More than 10,000 individuals participated in the screening of 50 programs across Broadcast and Cable television, during which placements and commercials were featured for nearly 200 consumer brands. This survey is part of an ongoing series of Nielsen initiatives to measure viewers’ exposure to all forms of advertising and determine their levels of engagement as part of its Anytime Anywhere Media Measurement initiative, also known as A2/M2.

An important objective of this extensive study was to look beyond a product placement’s physical characteristics (e.g., position within a scene, duration, character interaction, verbal support, etc.) and examine how the context of a placement’s execution — including the viewer’s loyalty to the program and familiarity with the brand — could impact consumer response.

The study recognizes the need for advertisers to measure performance against more than one advertising goal. The study specifically examined brand awareness, brand attitude and purchase interest, and identified the key factors in attaining each of these goals.

Following are top level findings from the Nielsen Product Placement Valuation Study:

The reinforcement of a commercial spot with a placement for the same brand during the program is a very effective way to boost brand awareness. Specifically, 46.6% of viewers exposed to a brand in the form of a standalone commercial were able to recognize it, but that rate climbs to 57.5% when a product placement was combined with the commercial.

The addition of a product placement to a commercial spot for the same brand does not appear to have an edge over a standalone commercial in terms of motivating viewers to purchase that brand. Whether the brand was presented as a product placement, commercial or both, a little more than one third of all viewers expressed high interest in the brands they were able to recognize.

Product placements appear to be at least as effective as a commercial spot in improving viewers’ general attitude toward a brand. Nearly 60% of all viewers felt more positive about the brands they were able to recognize in a placement.
Substantial variations in brand awareness, attitude and purchase interest were found to be impacted by the level of familiarity a viewer had with the brand, the genre of the program, a viewer’s loyalty to that program, the exact nature of the placement, etc.

“We are happy to deliver a study sound in methodology and scope to help our clients approach this particular branding strategy with a stronger insight. The Valuation study findings are available to clients in the form of a comprehensive research paper to assist individuals with their overall product placement planning,” said Annie Touliatos, Director of Product Development and Marketing for Nielsen Media Research.

The Product Placement Valuation Study was conducted in conjunction with 14 charter subscribers: A&E, CBS, CourtTV, Discovery, FOX, Magna Global, Mediacom, OMD, PHD, Scripps Networks, Sprint, The Weather Channel, Twentieth TV and Zenith Media.

Researchers from these subscriber companies are part of a Steering Committee that was instrumental in the formation, design and execution of the valuation study. In addition, they are providing guidance into the development of predictive models to further improve product placement planning.

“This comprehensive study of the interaction of product placement and commercial messages demonstrates that product placement can represent a valuable enhancement to a media plan,” said David Poltrack, Chief Research Officer at CBS Corp.

“More importantly, it also confirms that not all product placements are successful and it provides valuable guidance for the development of an effective product placement program.”

“The Nielsen study was a necessary step in reaching the next level of understanding product placement and integration for those in and outside the industry,” said Mike Hess, Director of Global Research and Communication Insights at OMD Worldwide. “I was impressed by the findings — some did indeed confirm what we suspected was true. On the other hand, some findings were counter to what might have been expected. Actually doing the empirical research to determine the nature of the relationships between the variables turns out to have been necessary in understanding what truly contributes to effective product placement.”