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Product Placement History and Impact on UK TV Audiences ITV Commercial Research Presentation 1.0 14.01.2013.

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Presentation on theme: "Product Placement History and Impact on UK TV Audiences ITV Commercial Research Presentation 1.0 14.01.2013."— Presentation transcript:

1 Product Placement History and Impact on UK TV Audiences ITV Commercial Research Presentation

2 UK Product Placement Brief History & Regulation

3 Until Feb 28 th 2011, regulation had banned the inclusion of, or reference to, a product or service within a programme in return for payment. References were allowed "where their inclusion within the programme was justified editorially Goods could also appear if they are obtained from a company for free or at a reduced rate to lower the cost of production and justified editorially (aka Prop Placement) Product Placement in the UK Marketplace

4 From 28 February 2011, paid-for references for products and services have been permitted in programmes. However, the new regulations include: 1. restrictions on the types of products that can be placed 2. some restrictions on the types of programmes in which products can be placed 3. limits on the way in which products can be seen and referred to in programmes (editorial justification test) 4. PP logo requirement (at start & end of programmes, also at the end of commercial breaks)

5 Broadcasting Code Summary for Product Placement (Post Deregulation) News and Childrens (whether produced in UK or acquired from abroad) Current Affairs, Consumer Advice, Religious Shows No PP allowed in: Films Series made for TV Sport Light Entertainment PP allowed in : Tobacco, Alcohol, HFSS brands, Gambling, Baby Milk, Medicines and any product that cant be advertised on TV No PP of the following Products:

6 Post Deregulation, ITV had the 1 st paid for Product Placement on TV in the UK. Brand: Nescafe Dolce Gusto Pod Coffee Machine Programme:This Morning Placed in: kitchen/cooking 11:30 – 12:00am daily Viewed on ITV1 and also ITV Player Nestle made marketing history on 28 th February 2011 when it became the 1 st brand to appear in a UK made programming on a paid-for basis

7 ..this was followed by ITVs 1 st peak time placement deal with Nationwide ATM in Coronation Street. Brand: Nationwide ATM Programme:Coronation Street Placed in: Devs Shop 1 st TX: 19 TH November 2011 Viewed on ITV1 and also ITV Player

8 Nescafe Dolce Gusto (This Morning Kitchen) Nationwide (Coronation Street) Welcome To Yorkshire (Emmerdale) Concept 2 Rowers (Britains Biggest Loser) Product Placements are becoming the norm on ITV since deregulation.. B&Q (This Morning Kitchen) DFS Sofas (This Morning) Samsung (X Factor) Highland Spring (Dancing On Ice)

9 ITV has an on-going research programme to understand and measure the impact of PP, both before and since deregulation - it has 3 main objectives, which are to understand: 1.The Viewer Experience 2.Programming and Editorial Implications 3.Commercial Impact This research programme covers both qualitative and quantitative techniques including eye- tracking, focus groups, omnibus and adhoc surveys. Measuring the impact of Product Placement ITV

10 Product Placement Insights from PP Research (Coronation Street)

11 In a PP research study on Coronation St using post production digital placements 91% viewers stated that seeing the brands within the programme made no difference to their enjoyment of the show 7% claimed more enjoyable ! PP added to programmes, has little or no detrimental effect on viewers actual enjoyment…… Source: ITV/Nielsen Quant Study (Main – 6 brands / 3 episodes) Dec 2009 (n=1600 Coronation St Viewers)

12 93% of eye-tracker respondents agreed that it is more realistic to see brands In fact, relevant PP can add depth and reality to a programme… I think seeing brands in TV programmes is more realistic than having no brands Notes: Eye-tracker sample (n=60),, Eps: 4 th Dec: 2 brands, 7 th Dec : 2 brands Strongly Agree Strongly Disagree Source: ITV/KAE Marketing Dec 2009

13 Page 13 I think it can add to the reality of the programme Female, 55+, Ep2 It is totally reasonable to see product placement on soap operas - it is meant to reflect real life and products are part of real life - it just looks stupid when you see fake made up items Female, 18-34, Ep2 Because they are part of everyday life you dont spot it Leeds, Its up to date, you do see these things in real life London, Theyve got a shop and pub and fish and chip so its fine – it makes it more real life by adding to these scenarios Leeds, Notes: Focus Groups 4 x 1.5 hrs (n=32) pre-tasked with viewing diary Product placements are seen as natural additions to programme content reflecting real life: Source: ITV/KAE Marketing Dec 2009

14 PP does have obvious and clearly defined limits for the viewers and must ….. 1)not detract or interrupt viewing experience 2)fit the storyline – right time, place, product and programme Notes: Focus Groups 4 x 1.5 hrs (n=32) pre-tasked with viewing diary I am happy for product placements to be used as long as they fit into the storyline Female, 35-54, Ep2 I think if it is done in a subtle way which does not spoil the programme then I have no objection to it Male, 55+, Ep2 84% eyetracker respondents agreed that: Product placement should not affect the storyline I dont mind products being shown if they fit with the story Notes: Eye-tracker sample (n=60),, Eps: 4 th Dec: 2 brands, 7 th Dec : 2 brands

15 When considering longer term PP, consistency of brands across episodes is important… The Special K has to be out at the right time of day…it couldnt be out at tea time Leeds, It wouldnt be realistic if the cereal someone was using changed every week London, How long will it stay William Hill? You would need some kind of consistency Leeds, The bus stop one works well because that changes quite a lot Leeds, Right time and right place Right number of repetitions I noticed it had William Hill when its actually Barlows which is an independent London, You wouldnt expect Roy and Hayley to drink Ribena Leeds, [Claire]s really tidy though so I dont know why she would leave it out Leeds, Notes: Focus Groups 4 x 1.5 hrs (n=32) pre-tasked with viewing diary

16 Viewers exposed to PP showed significant increases in general spontaneous brand awareness….. Significant difference at 95% confidence limit Coronation St Viewers Source: ITV/Nielsen Quant Study (Main – 6 brands / 3 episodes) Dec 2009 (n=1600 Coronation St Viewers) control n= 643, exposed n = 957

17 Significant difference at 95% confidence limit Coronation St Viewers Source: ITV/Nielsen Quant Study (Main – 6 brands / 3 episodes) Dec 2009 (n=1600 Coronation St Viewers) control n= 643, exposed n = 957 PPs are consciously remembered by viewers….

18 Significant difference at 95% confidence limit Coronation St Viewers Source: ITV/Nielsen Quant Study (Main – 6 brands / 3 episodes) Dec 2009 (n=1600 Coronation St Viewers) control n= 643, exposed n = 957 Notes: Opinion: Greatly/Somewhat improved; Interest in Purchasing: Strongly/Somewhat 80% claimed no change in opinion or influence in purchase intent ….with positive outcomes for brands

19 Coronation Street PP Study provided ITV with key insights on.. Viewers Editorial Implications Commercial Benefits Relevant PP does not detract from or interrupt the viewing experience It can add depth and reality (when done well) to a programme A majority (91%) of viewers to treated episodes, agreed that seeing the placements made no difference to their enjoyment of the programme Viewers enjoy PPs, with the lack of disruption to the viewing experience being an important quality Relevant PP does not detract from or interrupt the viewing experience PP must always fit the storyline – right time, place, product and programme. PPs are seen as natural additions to programmes The consistency of PP across episodes is important, frequent product changes (eg: cereals) will be noticed, but outdoor advertising placements could be changed. PP opportunities are often limited Unprompted spontaneous awareness was significantly higher for PPs in episodes. Specific PPs are consciously remembered with 30% average prompted recall rising to 62% when shown an image of placement. Opinion of product was raised amongst 15% of viewers 16% of viewers claimed a raised interest in buying product

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