4 September 2006
Mediaedge:cia reveal new product placement insight ahead of Ofcom review
• Product placement actually increases viewers’ enjoyment of a TV programme
• 45% are more likely to purchase a product if its placed in a TV programme
• Product integration lifts brand awareness levels by 24%
• Product placement improves brand affinity* by 22%
London – New research from MEC MediaLab, the research division of Mediaedge:cia
(www.mecglobal.com), a leading media communications specialist company and part of
WPP's media investment management company GroupM, shows that the introduction of
paid-for product placement in UK television could be beneficial for brands, advertisers,
broadcasters and even viewers.
Mediaedge:cia undertook the research to determine the potential benefits of paid-for product
placement to consumers and brand-owners, following Ofcom’s decision to conduct an in-depth
consultation on the issue in December 2005.
Product placement - “the inclusion of, or reference to, a product or service within a programme in return
for payment or other valuable consideration” - is currently prohibited on UK television. However, in an
environment where multi-channel penetration and ad-avoidance technology continues to threaten
traditional TV advertising, an additional revenue stream could be appealing.
Mediaedge:cia used both qualitative and quantitative** techniques to research viewers’ perceptions
towards product placement, with two main objectives. Firstly, to understand the effect of product
placement on viewer enjoyment. Secondly, to value its potential brand communications benefit in terms of
awareness, brand image and purchase intent.
For the purposes of the study, Mediaedge:cia identified product placement as the identifiable appearance
of a branded product in a programme, and product integration as the identifiable appearance of a
branded content in a programme with product mention and/or use of in the programme.
The difference would mean Dot Cotton from Eastenders lighting up a Benson & Hedges cigarette
(placement), or Dot asking her husband Jim to buy her some Benson & Hedges (integration).
To assess and compare reactions to these two forms of product placement, Mediaedge:cia worked with
Canadian broadcaster CTV to produce four versions of one programme – an entertainment news show –
featuring four test brands.
For each brand, one version was the ‘control’, the programme with no advertising or placement, one had
only advertising of the brands featured in the commercial breaks, one showed the ad followed by
placement of the brand in the programme and one with the ad followed by product integration within the
show. Respondents viewed one of these versions based on the premise that Mediaedge:cia were
researching programme formats.
Surprisingly, when asked about their enjoyment of the show they had just watched, those exposed to
integration and placement had, on average, higher enjoyment scores (22% and 20% respectively) than
those who watched the ‘control’ version.
A massive 45 per cent also said they would be more likely to purchase if they saw brand placement or
integration in a TV programme. Only 9% said it would make them less likely to purchase the product.
Mediaedge:cia reveal new product placement insight ahead of Ofcom review Sep 06
1
When respondents were asked which brands they had noticed in the programmes, product placement
lifted awareness by 16% over the traditional 30-second spot, while integration proved even more
powerful, lifting awareness by 24% against commercial exposure.
However, while integration is the best way to get a brand noticed, it isn’t necessarily the best way to
improve its image. Product placement improved viewers’ affinity with a brand by 22%, but this dropped to
just 8% for brands using product integration. Brand affinity is a composite of trust, consideration and
performance perceptions.
David Fletcher, Head of MEC MediaLab, commented:
“Where integration offers more in terms of brand recall, placement is more effective in changing brand
attitudes, showing that the different types of exposure offer different benefits.”
He concluded:
“What’s clear is that viewers are sensitive to overt commercialisation. Subtlety and viewer consideration
are the two key areas to consider. By respecting the audience within the script, programme makers can
build up increased realism and possibly an increasing viewer enjoyment in their shows, whilst brand-
owners will benefit from increased awareness and stronger brand attributes. A wide range of advertisers
could benefit from product placement – especially new brands and launches – as long as the viewer is
respected”.
Footnotes:
* Brand affinity is a composite of trust, consideration and performance perceptions.
** For the quantitative study MEC interviewed 318 UK adults aged 18-40 in March 2006
Mediaedge:cia reveal new product placement insight ahead of Ofcom review Sep 06
2
Editor’s notes
About Mediaedge:cia
Mediaedge:cia (MEC) is the first global communications planning and implementation agency. We get consumers actively engaged
with client’s brands, leading to relevant awareness, deeper relationships and stronger sales. Our services include consumer insight
and ROI, communications planning, media planning and buying, interaction (digital, direct, search), sponsorship consultancy and
activation, branded content and entertainment marketing. Our 4,000 highly talented and motivated people work with local, regional
and global clients from 199 offices in 79 countries. MEC is a founding partner of GroupM, WPP’s media investment management
group. For further information, visit www.mecglobal.com
About GroupM
GroupM, the worlds leading full service media investment management operation, was created by WPP Group to oversee its assets
in this sector. These assets include Mediaedge:cia, MindShare, MediaCom and MAXUS. The focus of GroupM is the intelligent
application of volume and scale in trading, innovation and quality of services, in order to bring benefit to clients and the companies it
operates. For further information, visit www.groupm.com
About WPP
WPP (NASDAQ: WPPGY) is one of the world's leading communications services groups, providing national, multinational and
global clients with advertising; media investment management; information, insight & consultancy; public relations & public affairs;
branding & identity, healthcare and specialist communications. Our worldwide companies include JWT, Ogilvy & Mather Worldwide,
Y&R, The Voluntarily United Group, Grey Worldwide, Bates Asia, MindShare, MediaCom, Mediaedge:cia, Millward Brown,
Research International, Kantar Media Research, OgilvyOne Worldwide, Wunderman, 141 Worldwide, Hill & Knowlton, Ogilvy Public
Relations Worldwide, Burson-Marsteller, Cohn & Wolfe, CommonHealth, Sudler & Hennessey, Ogilvy Healthworld, Enterprise IG,
Landor and Fitch among others. Our companies provide communications services to clients worldwide including more than 330 of
the Fortune Global 500; over one-half of the NASDAQ 100 and over 30 of the Fortune e-50. We work with over 330 clients in three
or more disciplines; more than 130 clients in four disciplines and over 100 clients in six or more countries. Collectively, WPP
employs more than 92,000 people in 2,000 offices in 106 countries. For further information, visit www.wpp.com
For further information, please contact :
Henrietta Mackenzie / Catherine McMahon
Eulogy!
Tel : 020 7927 9999
Mobile : 07970 002109 / 07779 591894
Email : henrietta@eulogy.co.uk catherine@eulogy.co.uk
Mediaedge:cia reveal new product placement insight ahead of Ofcom review Sep 06
3