TGI: Reality TV – product placement & consumer targeting

Regulatory approval for product placement in television programmes represents a new opportunity for advertisers and puts UK programming on a similar footing to its counterparts in Europe and America.

Latest TGI data show that 35% of British adults ‘often’ notice products or brands that appear in TV programmes or films.

In order to take full advantage of this audience it is important that product-programme relationships are based on shared values and appeal to similar consumer groups. Misalignment will not only waste money but may also prove unpopular with viewers.

Advantages

One potential advantage of product placement is that it may reach a broader demographic than established TV-programme sponsorship. Men are around 50% more likely than women to buy products from companies that sponsor TV programmes with the coveted young adult group (15-24s) accounting for almost 40% of agreement.

In contrast, TGI shows that men and women are equally likely to notice products or brands that appear in TV programmes or films, and 15-24s account for less than a quarter of total agreement – indicating a more even age spread when it comes to noticing product placement. There is also a fairly even split between the higher and lower social grades.

Categories

Analysts predict that product placement revenues will increase steadily after a slow start, reflecting the trend set by TV-programme sponsorship in recent years. Leaving aside the restrictions likely to be imposed upon alcohol, HFSS foods and gambling, certain product categories may benefit more than others.

For example, those who often notice products or brands in TV programmes are more than twice as likely as the average adult to have talked to many different people about toiletries in the past 12 months.

They are also 30% more likely to feel particularly reliant on mobile communication and a quarter more likely to spend at least £30 a month on their mobile. The women in this group of ‘product spotters’ are 150% more likely to spend at least £20 a month on cosmetics and 90% more likely to spend £20 or more on skincare.

Programme genres

Given that certain types of audience will be more amenable to product placement, particular programme genres will be more attractive to advertisers. People who notice products/brands in TV programmes over-index against a range of programme genres. They are 140% more likely to watch reality TV, twice as likely to watch chat shows, 80% more likely to watch music programmes and 45% more likely to watch soaps. Other high-indexing programme genres include arts/culture and property.

In future product placement opportunities may become a regular feature of multi-platform campaigns. Marketers will need to demonstrate a similar affinity between their brand values, brand consumers and TV-programme partners. As consumers become more selective in their brand choices, appropriate product placement may offer not only a way to reinforce brand values but may also help new products or challenger brands to gain traction.

Source: GB TGI 2010 Q1
Base: Adults aged 15+