Product placements effective, Decima Research survey finds

Product placement in popular American television programs seems to be resonating with Canadian viewers, according to the results of a new online survey from Decima Research. The data is part of the April 2006 Decima Quarterly. The survey asked an online panel of more than 1,500 English-speaking Canadians whether or not they watched hit programs such as the CSI franchises, Desperate Housewives, The Apprentice, ER, and 24, and then measured the effectiveness of particular product placements in those programs. Generally, the opinions expressed by respondents demonstrate that product placement has been successful to some extent in the Canadian market, resulting in consumer mindshare. Decima Research CEO Bruce Anderson says the results clearly demonstrate that product placements are working, but cautions that some products didn’t resonate as well as others. "For those who are wondering whether advertisers are gaining share of mind through product placement, these results are a solid affirmation of that," he says. "The really effective standouts include Coca-Cola on American Idol, Ford’s placement in 24, and The Apprentice in general." Automobile manufacturers are one of the more prolific users of product placement, and the survey results demonstrate they appear to have found an effective formula to reach consumers. About two-thirds (65%) of those who said they regularly or sometimes watched CSI: Miami could identify General Motors’ Hummer H2 out of a list of five vehicles as the one featured in the program. This could perhaps be related to the vehicle’s unique silhouette and extensive media coverage as both a civilian and military vehicle. Other vehicles didn’t receive the level of viewer retention that the Hummer H2 did, but they still fared well. Nearly half (47%) of The Apprentice viewers correctly identified the vehicle in that show as the Pontiac Solstice. More than one-third (37%) of respondents who watched 24 could identify the featured SUV as a Ford. The Big Three North American automobile makers and the large foreign vehicle manufacturers have a vested interest in product placements. According to the New York-based Television Bureau of Advertising, a not-for-profit agency that studies and promotes local-market TV advertising, auto makers remain the number one group of advertisers in the 100 largest US local broadcast markets, with $1.2 billion worth of ad spending in the fourth quarter of 2004 alone. The automobile industry has also readily taken to the concept of product placement, making them a perfect group to study. However, other consumer goods or services also scored high in viewer retention. Nearly two-thirds (64%) of American Idol viewers could recall the prominence of Coca-Cola in the show. As well, Ford and Cingular had high retention rates among the reality TV series’ viewers, with 39% and 33% respectively. The Apprentice, which has been considered by some to be a huge product placement built into a reality TV series, succeeded in getting recognition for a wide range of consumer products and services: Norwegian Cruise Lines, Staples Business Depot and Sony’s Playstation all scored well, with retention among viewers above the 50% mark. Other products and services faired well, too, with about 40% of viewers saying they remember seeing the Gillette, Yahoo and General Motors brands on The Apprentice. Results show that nearly 70% of respondents believe product placement to be an effective method of advertising, a view even more strongly held by young people. Anderson adds that consumers don’t appear to be too annoyed by product placements, either. "It’s normal for people to push back against advertising a bit in survey responses and to avoid saying it influences their decisions," he says. "With that backdrop, these numbers imply a pretty solid level of acceptance of this evolving form of advertising." The fact that all the shows included in the survey originate south of the border is telling: US film and television productions have been increasing their use of product placement to offset losses in other more established forms of advertising due to the advent of technologies such as the personal video recorder (PVR). The CRTC is currently weighing the issue of product placement and whether or not it has jurisdiction over it. Current Canadian television advertising regulations limit commercials to 12 minutes for every hour of programming – any more than that, and the commission can label the program an infomercial, which is a separate category of programming for licensing purposes. Meanwhile, Canadian advertisers, threatened with the advertising revenue losses that product placement represents (CCR, June 24/05), have already taken matters into their own hands. Recently Canwest Global Communications Corp. blocked out a sponsor logo on the roof of a cab in its simulcast of The Apprentice and replaced it with a virtual ad for Casino Rama. CTV Inc. has also pursued product placement dollars, as evidenced by its deal with Sears Canada Inc. The retailer’s Wish Book catalogue appeared in a holiday episode of Corner Gas last year (CCR, Nov. 7/05). The survey, which was conducted for the April 2006 issue of the Decima Quarterly via the eVox online panel, polled 1,582 people with results being accurate +/- 2.12, 19 times out of 20. For information about purchasing a summary report based on the survey findings, please contact Ryan O’Neill at (613) 230-1984 or roneill@decima.com.

Product placements effective, Decima Research survey finds

Broadcast | April 21, 2006

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