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HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
Viewers Favor Product Placement Over Commercials -- But What's The Tipping Point?
by Wayne Friedman, Tuesday, May 13, 2008, 1:00 PM

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A new poll by Entertainment Weekly shows three out of four TV viewers prefer product placement over commercials.

What EW didn't survey was whether TV viewers would mind seeing 20 different product placements over 40 minutes of program content -- or around one every two minutes -- every night for every TV show.

I use this equation because that is what it would take to replicate the current financial TV model, where there are 10 minutes of national TV commercial messages per hour of prime-time programming  -- plus two more minutes for local advertising time, as well as additional minutes per hour of network promotion time.

This survey suggests viewers would rather see an entire show full of product placements than 12, 14, or 16 minutes an hour of non-program time. I wonder what that would look like. Not too organic, I would guess.

Still, branded entertainment proponents will make sure that product integration continue to grow. But the math gets in the way. One-hour TV shows are not getting any cheaper, averaging $2 million an hour or more.

Unless you are Mark Burnett with "The Apprentice" or "Celebrity Apprentice" or a select few other reality shows, branded entertainment deals today can only do so much in bringing down production costs.

Loading up more product placement would mean less time to make these deals work creatively. Organically driven deals? Forget it. The problem with loading more product placement into shows is that they will start to look like commercials.

EW's survey does concur with results IAG Research has come up with concerning branded entertainment, which is that the worst of it -- the most in-organic, slapped-on-stuff -- doesn't seem to faze viewers. But this is only snapshot of where product placement now, which is - for the most part - only lightly sprinkled in shows, and where DVRs are only in 20% of U.S. TV households.

The majority of branded entertainment still occurs on reality shows.  Give me analysis about overloading product placement onto scripted shows -- especially when TV producers still complain it takes much more effort and time to work products in "organically."

If viewers still don't mind, I can only hope they are saving time and the economy by not watching an entire show and, instead, going out shopping.

2 people recommend this article. 

7 comments on "Viewers Favor Product Placement Over Commercials -- But What's The Tipping Point? "

  1. Mark Allen Roberts from Pragmatic Marketing
    commented on: May 16, 2008 at 6:54 PM
    As the consumers of today adjust and shift in how marketers can influence them I believe the underlying rule is to be authentic. Product placements have occurred for some time and I see a large increase even over the last 6 months. The challenge is it is foreseeable the placements will become the white noise we learn to disregard as consumers. I believe marketers are scrambling to in some way take control back, however the control is lost. Once they accept the consumer is driving the bus, the goal should be to talk to the bus driver in a way that does not cause a wreck. I say we ask them what they want to hear, need to know, and authentically connect based on what they tell us.

  2. Scott Allen from About.com
    commented on: May 13, 2008 at 5:15 PM
    The thing that opponents of product placement seem to forget is that product placement is actually HIGHLY organic. Just looking around my office right now, I readily see half a dozen prominent brands. There's probably double that in my living room and triple that in my kitchen.

    What's weird is to blur out logos because they haven't paid for placement -- how much more inorganic can you get? What's weird is to have people pouring from a box of generic cereal while drinking a "Cola".

    If seeing 20 product placements in 40 minutes seems unnatural, it's only because in recent history, the TV industry has made it so. That's actually pretty normal in everyday life.

  3. john hall from john hall and associates
    commented on: May 13, 2008 at 3:52 PM
    first, its interesting just to see who has "weighed into the discussion". I am glad to see it is relatively small companies that have identified a niche (at least for the moment) where they can build a bridge between ad agencies and networks in an attempt to provide a responsible solution to the broken network model. It's also given me three more websites to check out in my quest to measure the "branded entertainment" business.

  4. Sarah Schmucker from Visure Corp.
    commented on: May 13, 2008 at 3:17 PM
    Wayne, interesting points, and your article hit on some key theories and strategies we have been working on. We at Visure certainly believe in the growth of product placement, but that growth doesn't necessarily have to come in the form of overt integrations. We have been collecting online data on consumer behavior in response to product placement (searches online for products appearing in movies, TV, etc.), and we are finding that most interest comes from the non-branded, non-integrated placements, where most of the product placement activity comes from (the 20-40 or more inventory you mention in your article). Thus, we are developing campaigns online to support the placement and deliver that message instead of contaminating the script/production. We are finding some compelling results. In short, consumers overall are significantly more compelled by ad messages associating a product with an entertainment production (product placements). So now, the next step is how do we get the nets to monetize that association from product placements that are now bartered but have substantial advertising value...

  5. Leslie McKerns from McKerns Development
    commented on: May 13, 2008 at 1:27 PM
    Tipping Point indeed, Wayne. When you get too much product placement that is non-organic, viewers will bail. Viewers who are captivated by a show and have given over their hard won personal time to view a show, don't want to be interrupted. (From the experience, the plot, the characters...) That is key. That is why viewers will accept products that are carefully woven into the plot and will ultimately not accept programs that refuse to do the work to integrate product into plot. At McKernsDevelopment.com we work with ad companies and brand extension companies, doing the footwork and integrating the brand into the plot and program - in a way that will be accepted by the viewer. Fans accept product only when they believe that their character would say those lines and use those products. And they don't want to think about it or question it - after all, you don't have to run subtitles explaining backstory. And you don't want viewers wondering why your plot is suddenly filled with out of character placements.

  6. William Hughes from Arnold Aerospace
    commented on: May 13, 2008 at 1:19 PM
    10 Minutes National Plus 2 Minutes Local? You must have been a Coma for the last 12 years! Nowadays it's AT LEAST 15 Minutes National plus 5 Minutes of Local Commercials! Promos are now played during the Program itself, as "Pop-Ups", Banners or Scrolls! Is it a Wonder more and more people are using DVRs to get around these additional "Intrusions"? Or, as I have done stopped watching Broadcast and Cable TV Altogether, relying on the Internet or Home Video for their Entertainment Needs?

  7. ashkan karbasfrooshan from mojosupreme
    commented on: May 13, 2008 at 1:11 PM
    I think this is even stronger online.

    Like it or not, you will seeing more and more product placement and integration in online video content where there is even more resistance to ad placements.

    At WatchMojo.com, we've been exploring this with more and more advertisers and ad agencies; so long as it's done tastefully and neither party is trying to mislead users, our results show that indeed users prefer that to ads, pre-roll etc.

    I expect to see more and more of this, but few will be able to pull it off programming and distribution-wise, those who can will have the advantage over those who can't.

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WAYNE FRIEDMAN
  • Wayne Friedman is West Coast Editor of MediaPost.



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