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BizReport : Advertising archives : October 21, 2014

Report: Product placements can recoup commercial losses

New data out from INFORMS shows product placements can curb audience loss during commercial breaks by up to 10%. According to researchers product placements reduce the amount of time television viewers 'turn away' from programming during commercial breaks.

by Kristina Knight

Those findings are true when the placements and ads are for different brands; researchers found that when the product placement and commercial are from one brand, audience loss decreases by about 5%. One more finding: when the product placement and ad are for products from the same brand but in different categories, audience loss is curbed by nearly 11%.

"Ads can't be effective if they're not seen," said David A. Schweidel, Associate Professor of Marketing at Goizueta Business School, Emory University, and author of the report Synergy or Interference: The Effect of Product Placement on Commercial Break Audience Decline. "Our findings suggest that product placement efforts may offer two routes of effectiveness for marketers. One. as its own form of advertising, embedded within the program, and a second by increasing the reach of traditional television advertising."

In a related announcement, Simulmedia has licensed itself with Nielsen Catalina Solutions AdVantics on Demand; this integration will provide Simulmedia advertisers with rich audience data that will help them align viewing patterns with brands. This kind of data will help advertisers create relevance based audience segments.

"We are pleased to expand our relationship with Nielsen and activate Nielsen Catalina Solutions' consumer purchase data across Simulmedia's massive, audience-based TV network, which includes the majority of TV networks and operators in the US," says Dave Morgan, Simulmedia's CEO. "The media world is shifting from just delivering media outputs to delivering business outcomes. With NCS, we can not only bring greater precision to consumer packaged goods companies' TV campaigns but actually deliver and ultimately guarantee the business outcomes that everyone in marketing demands today."

Tags: advertising, advertising content, INFORMS, product placement, Simulmedia, video advertising

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