Product Placement/Branded Content

Mi hui Pak

Branded Entertainment and Product Placement seems to be a growing business –the 2009 emarketer article shows that ad spend in this media increased 4% from last year. However, there is still a dearth of substantive research on how and if PP works better than traditional commercials.

ADVERTISING EFFECTIVENESS

The 2005 NBC study found that:

  • Recall for Traditional Commercials and Product Placement, when shown alone, was the same (50%).

  • Highest recall was found when Traditional Commercials and Product Placement were shown together (67-68%).

The findings from a 2006 Nielsen Media Study: The Performance of Brand Placement (summarized in the 2007 WARC excerpt) show that:

  • Product Placement tested lower in Recognition than Traditional Commercials (39.8% vs. 46.4%)

  • Product Placement tested higher in Brand Feeling than Traditional Commercials (57.4% vs. 53.7%)