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August 22, 2005
Survey Says: TV Ads Not Dead

According to a recent national study, product placement has less effect on consumer purchases than traditional television commercials.

More than half of consumers surveyed (52 percent) by FIND/SVP, a single-source provider of custom business research services, said they would be much more or somewhat more likely to purchase a product seen in a commercial versus one featured in a product placement (23 percent). Subliminal effects notwithstanding, the study also found less than one in four Americans believe that a product seen in a show would motivate them to purchase.

FIND/SVP's study asked 1,000 consumers in August 2005 a range of questions online to determine their opinions on traditional TV advertising compared to branded entertainment or product placement. Nine percent of consumers surveyed said brand cameos during programs would actually make them much or somewhat less likely to purchase the product compared to advertising at six percent.

"Even with the exponential growth of spending on branded entertainment, traditional TV commercials are still having an impact on consumers," says Frank Dudley, vice president of marketing, FIND/SVP, Inc. "These findings speak to consumers' familiarity with the traditional advertisement. However, using branded entertainment within a fully integrated marketing campaign has the potential to deliver the measurable results marketers' desire."

The study revealed a disconnect with some consumers regarding the intent of all TV marketing practices. Assuming all things equal, when consumers were asked the primary objective of various marketing activities, fewer than half (43 percent) agreed completely that a scene in a show featuring someone using a product was an attempt to influence purchase. Not surprisingly, 73 percent of consumers surveyed said that the primary objective of TV commercials was to influence purchase.

Again, TV commercials were more acceptable across all types of programming for consumers. When asked within what type of TV show is most acceptable for them to be exposed to such marketing practices, more than half of the respondents accepted TV commercials for each genre including dramas, situation comedies, talk shows and reality shows. However, consumers surveyed were much more likely to accept product placement in scripted shows (36 percent in dramas, 47 percent in sitcoms) than reality shows (25 percent).

Consumers surveyed were asked to recall the well-publicized car giveaway on "The Oprah Winfrey Show" earlier this year. Supporting the findings cited above, only one in three (36 percent) actually recalled seeing the episode, and 44 percent of those who saw the show recalled the car she gave away -- a Pontiac. Of the males who saw the show 51 percent recalled the car, and of the females who saw the show 40 percent recalled the car.

"Innovative marketing strategies will continue to impact and influence consumer purchasing behavior," says Dudley. "Product integration in all forms of entertainment will continue to see success, but this new study proves that the television commercial is not dead."

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