Although product placement is still common, like the Samsung and Verizon Wireless products in Jurassic World, that doesn’t mean it’s the go-to tool across all mediums.
A new article in the Wall Street Journal indicates that product placement has seen a drop-off as far as prime time television is concerned. The report indicates, per numbers provided by Nielsen, that product placement appearances during the new broadcast season’s debut week saw a decline, down 45% to 104, compared to 2014’s premiere week.
This isn’t a recent decline, either. Last year’s broadcasts also saw a decrease in product placements, with just under 4,500 for the entire broadcast TV season a 3% drop from the previous year, and a 20% decrease from the 2012-2013 season.
The reason for this Many think that new advertising platforms, such as influencer advertising, are leading the way. “There are so many more options available for advertising now and every year it grows,” said Chad Dreas, managing director of media analytics for Nielsen.
Another factor to consider is keeping advertisers in the fray. Andy Donchin, chief investment officer for Amplify US, notes that it’s a “big commitment” in terms of keeping them around. “There is an out of pocket premium” that advertisers need to pay, and it doesn’t always make sense.
Companies also seek better integration of products into shows, not just a TV character grabbing a product secondarily as they continue acting. That said, there are examples of when product placement still works, but with less subtlety. The video above demonstrates how Stephen Colbert incorporated Sabra roasted red pepper hummus into his debut episode of The Late Show With Stephen Colbert. The talk show host also gave Oreos a nod during a Donald Trump segment.
Some companies, like Cigna Corp. health insurance, are still involved with this form of advertising, which can be seen in various ABC programs. This includes some audience members from Jimmy Kimmel Live having a double do their jobs so they can get medical check-ups. Stephen Cassell, global branding officer at Cigna, explains that this integration “amplifies the commercial message.”
Dreas also added that product integrations “add value and increase the effectiveness” of ads, although there is still that question of other methods, and how they can work with advertisers.
This includes the growing power of influencer marketing. A recent study showed that 60% of marketers planned on increasing the budget allocated to it. With it, a number of other advertising methods could prove effective without obvious plugs. These include word of mouth across social media platforms, which have better ROI (which range anywhere from $2 to $6.50 per dollar spent, depending on the program) and utilize data to a better effect.
“Influencer campaigns are so much more accountable than traditional vehicles like broadcast or outdoor billboards. Ultimately, those figures are estimates based off industry standards,” says Steven Lai, talent group director for ION. “But digital content like influencer campaigns can be granularly tracked from impressions/views to clicks to purchase. Setting up campaigns properly, we can track every action a user takes as they progress through the purchase funnel and optimize in real time.”
