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  • May
  • 8

Product Placement – Exciting Opportunity or Waste of Money?

Channel 4 Announces Product Placement Deal with New Look

Channel 4 Announces Product Placement Deal with New Look

On 28th February, Nestle became the first brand to benefit from the new rules on paid-for product placement on British TV when its Dolce Gusto Coffee Machine appeared on ITV’s This Morning.

But over the past couple of months, annoucements of further product placement deals have been few and far between.  TRESemme have signed up with Sky’s Next Top Model and New Look with T4’s new Fashion Show, but both deals involve a combination of programme sponsorship and product placement. 

In addition, a recent YouGov poll on the subject shows TV audiences at best indifferent and at worst openly hostile to the thought of product placement in British shows.

Does this underwhelming response from brands and consumers mean that product placement isn’t as attractive an opportunity for brands as some thought?

Probably not.  The slow pace of progress is most likely down to a number of factors.

Firstly, there is a limited universe for product placement deals in the UK.  Of course, it has to be British produced, which means that broadcasters such as Channel 4 and 5, which rely to a significant degree on imports for their content, offer only limited opportunities.  In addition, children’s programming, news, current affairs, religious and consumer advice shows cannot participate. The same applies to the biggest producer of homegrown programming, the BBC.

In addition, many of the brands that drive the product placement channel in markets like the US and Australia are prohibited by Ofcom rules - including food brands high in fat, salt or sugar. Drinks and tobacco brands are also prohibitted.

But the small number of confirmed placements is most likely a reflection of the caution of producers, broadcasters and advertisers faced with a possible backlash from audiences if they get things wrong, and from the lead times involved in the production of much original programming. Much of this caution may be misplaced considering that UK audiences are already familiar with product placement in the large number of US imports currently screened by UK channels.

So is product placement a viable strategy for premium and luxury brands? Yes – the brands scrambling for even a fleeting association with the James Bond franchise shows the power the right association can have.

And while British TV doesn’t necessarily have characters of the same profile and power as Bond, product placement can be highly cost effective – Nestle’s initial This Morning experiment delivered up to £500,000 worth of coverage value for an outlay of less than £100,000.

With audiences increasingly able to avoid TV advertising, product placement offers a cost effective way to reach mass audiences, increase brand awareness and, via an association with a programme, character or personality much-loved by its audience, increase brand affinity.

But Ofcom’s rules are tight – placements mustn’t be given undue prominence and must be editorially justified. Hence, brand’s are best to consider additional ways to leverage their product placement – like New Look and TRESemme have done – rather than rely on it to deliver significant value unsupported.

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By: Graham Painter

  • Sep
  • 16

Ofcom Research: Who’s Consuming What Media (& How Much Attention Are They Paying To It?)

Ofcom’s annual report on ‘The Communications Market’ has been published recently which gives us an opportunity to discover, from an impartial source, how media consumption habits have changed over the past 12 months.

There are 2 aspects of this report that piqued my interest:

- Some new research into the ‘media day’ of consumers – what media they’re consuming when, in waht volumes and how much attention they’re paying to it.
- The latest research on internet consumption habits – what do people use the internet for, how much has social media grown and to what extent are people using mobiles to access the web?

I’ll cover this latter topic in a separate article. In this one, I’d like to cover Ofcom’s new research into the media day.

The first point that the report makes is that people consume a lot of media. Of the 15 hours and 45 minutes the average person spends awake, 7 hours and 5 minutes are spent in media and communications activities – that’s 45% of their waking hours.

In terms of the media they’re consuming and the communications activities they’re participating in, TV had the highest reach overall, followed by text communications (texting, emailing, social networking) and radio. This varied between age groups, with the top 3 for 55+s being TV, radio and print media and for the 16-24s being text communications, TV and ‘other audio’ (e.g. listening to audio on another device other than a radio).

Proportion of Media Used By Age

Proportion of Media Used By Age

Ofcom also looked at when media was consumed – unsurprisingly, TV viewing peaked in the evening and radio in the morning. Text communications dropped off a little in the evening when print media consumption tended to pick up.

Media Use By Time of Day

Media Use By Time of Day

Although the average time people spent consuming media and communicating was just over 7 hours as mentioned earlier, the actual media consumed was 8 hours 48 minutes worth. This is because 1/5 of that time was spent using more than one form of media at the same time.  As a rule of thumb, younger people are more adept at this media multi-tasking than older people, spending a larger portion of their time consuming more than one type of media.

Media Use - Solus vs. Simultaneous

Media Use - Solus vs. Simultaneous

From an advertiser’s perspective, this begs the question – what effect is this multi-media consumption having on the impact of my message?

Ofcom’s research found that when activities are conducted simultaneously the attention people paid to either activity generally fell, though this did not hold true for more traditional forms of media, such as watching scheduled TV, listening to the radio on a radio set and reading print media. By contrast, emailing on a computer and social networking on a computer showed a greater drop in attention when combined with other activities.

Simultaneous vs. Solus Attention Scores

Simultaneous vs. Solus Attention Scores

In terms of the activities that tend to be undertaken on a ‘solus’ basis, Ofcom identified watching TV as the most popular – 83% of television viewed on a TV set occured without any other concurrent media consumption. Other activities that tend to be undertaken on their own included listening to the radio on a radio set (81%), and reading newspapers, magazines or books (71%). By contrast, activities on a mobile phone and a computer were most likely to be undertaken at the same time as other media activities  – 55% of mobile phone use took place concurrently with other media activity, as did 62% of computer use.

This is comfort for companies who target older demographics as most of their consumption involves traditional media such as TV, radio and print. However, for those targeting younger age groups, who consume most of their media via computer’s and mobile phones, it means they’re often fighting for their attention against other media activities.

However, Ofcom’s research went one stage further and looked at the attention people pay and the importance they attached to the various activities.

Importance Of and Attention to Activities

Importance Of and Attention to Activities

So for example, a large number of people email and those that do attach a high level of importance and attention to it.  Their attention may dip when doing it in association with other activities, but this ‘simultaneous’ attention score is still higher that the attention score for listening to radio, for example.

So what conclusion should we draw from this research?

For me it demonstrates that traditional media can still be highly effective because of its reach. TV is an effective way to reach all demographics, tends to be consumed on its own but suffers from lower than average attention – advertisers will have to be creative in their use of it to make an impact on consumers.

Print media can still be highly effective but primarily for older age groups, particularly 55+s – the fact that people see it’s consumption as important and give it more attention than other forms of mass media elevates its effectiveness.

Those looking to target younger consumers are better advised to take a web or mobile based route, but need to bear in mind that their audience may be multi-tasking so have to make sure their message is being delivered in highly relevant contexts or environments and is highly impactful in order to gain the fullest attention of their audience.

For a full copy of Ofcom’s report on ‘The Communications Market’, click here.

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By: Graham Painter

  • Apr
  • 9

TV Revenues Start to Rally

As always in a recession, television has suffered shocking revenue falls, around 11.5% between 2008 and 2009. However, in the final quarter of 2009, ITV started to rally showing an impressive 14.9% yr on yr revenue growth in December and the signs are that 2010 will continue the recovery assisted by the World Cup, more X-Factor, Britain’s Got Talent, I’m a Celebrity and the last ever UK Big Brother. Broadcasters are predicting a positive start to the year with anticipated revenue growth of 5% in the first quarter. To counter that, however, there will be a stop on COI advertising in the run-up to the election. Since the government is the largest advertiser in the UK, this could hurt Q2.

February saw the launch of See-Saw, an advertising funded online video-on-demand service, offering free content to users as well as international programming which will form part of a paid for service to be launched later this year. See-Saw launches into an crowded market, with all the major broadcasters already offering their own catch up services and the joint online TV venture, Canvas (BBC, BT, ITV, C4, 5 and Talk Talk) awaiting BBC Trust approval. Ultimately, the key to winning the battle for viewers will be securing exclusive content at the right price and with easy access.

Despite the poor economy, or perhaps reflecting it, TV remains the nation’s favourite leisure activity. As such, TV remains a highly powerful advertising tool, capable of delivering the largest simultaneous group of audiences of any advertising medium. So whilst the buzz continues to grow round the newer methods of delivering television such as iptv and the growing penetration of internet enabled sets in homes (20% of new TVs sold in the UK this year), the lassitude of the viewing public will ensure that, for the time being, traditional TV will continue to deliver the mass numbers.

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By: Graham Painter

  • Jan
  • 22

Media Predictions for 2010 – from our friends at Deloitte

Deloitte have just released their 9th annual Media Predictions for 2010, and although no predictions are 100% accurate, Deloitte’s are usually well thought-through and researched so well worth taking note of.

The headlines are as follows:

 - 90% of all TV watched and 80% of all audio-content consumed in 2010 will be via traditional broadcast. ‘Linear’ TV and Radio will continue to be the norm in the foreseeable future despite the continued growth of ‘on-demand’ services. Deloitte’s rationale is that ease of use and inertia are the strongest factors behind traditional TV and radio consumption habits being slow to change.

 - Online advertising will continue to grow both in real terms and as a proportion of advertising spend.  Search, social networking and other performance-driven models will lead the way. Magazine and Newspaper advertising revenues are the most likely to be effected as marketers re-align their spends.

 - 2010 will see an explosion of eBooks consumed but not necessarily on the new raft of eReaders being released. eReaders are seen as having too high a pricepoint to achieve rapid penetration.  The rapid growth in eBook consumption will be via existing devices such as laptops, netbooks, smartphones (yes – apparently people read books on smartphones) and the new generation of nettabs.

 - Newspapers and magazines will continue to make noises about charging readers for online content but few will follow their words up with actions in 2010.  The fact that the loss in revenues from the decline in print subscriptions due to free online access dwarfs online advertising revenues is the main driving force behind the desire to change. However, the most attractive payment mode, micropayments for time/article limited access is not workable at the moment, as people are unlikely to want to go through the time and effort of credit/debit card payments for such small amounts.

 - The convergence of TV and internet will continue, but not fuelled by internet-enabled TVs but rather through consumers attaching existing devices, such as wifi-enabled laptops and games consoles, to their television.  The 10 year renewal cycle for televisions and the difficulty of delivering keyboard/mouse style functionality through a remote control are sited as the main barriers.

 - 3DTV penetration will be negligible in 2010 but the mid-term prognosis is good as long as a single platform becomes dominant and the film industry keeps up it’s flow of 3D movies to keep the momentum going.

The main consideration to take into account as you’re weighing up these predictions and the probable impact on your business is that they apply to the mass market, and the behaviour of premium and luxury consumers could differ markedly from the above.

For example, with significantly lower TV consumption than the mass market, luxury consumers are more likely to find on-demand TV attractive as they cherry-pick their viewing for the limited leisure time that they have. In addition, publications that appeal to a wealthier audience are predicted to have more success with paid models for online content, so therefore are more likely to make the jump first.

My advice would to keep reading the Cream blog (sign up to RSS or subscribe to our email) to keep abreast of the implications of the latest media developments for luxury and premium brands.

For a full copy of Deloitte’s Media Predictions for 2010, email catriona@creamuk.com.

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By: Graham Painter

  • Jan
  • 15

Video-on-Demand Coming to a (Wide) Screen Near You

Internet-Enabled TV Good News for Luxury Advertisers

Internet-Enabled TV Good News for Luxury Advertisers

3DTV may have been the buzzword at the recent Consumer Electronics Show in Las Vegas (and yes, you will still need to wear the glasses) but it’s the new rash of internet-enabled TVs that are likely to have a more enduring impact on the market.

Unlike other recent innovations such as the iPhone and the upcoming Apple Tablet, which tend to appeal to an affluent but demographically limited audience of early adopters from their mid 20s to mid 40s, internet-enabled TV has a broad appeal across all age groups. A recent Deloittes study in the US found that whilst 65% of internet users across all age groups wanted to connect their TV to the internet,  59% of ‘Babyboomers’ (44-62) and 46% of ‘Matures’ (63-75) were also keen.

As internet TV penetration grows, so will consumers’ appetite for ‘video-on-demand’ content which represents an opportunity for advertisers to use this medium in a much more selective and intelligent way. BBC iPlayer reported over 100m downloads in December alone and PricewaterhouseCoopers has urged broadcasters to come up with strategies to maximise their advertising opportunities around this new channel.  Sky is leading the way, having already adding a ‘behavourial’ element to their offering so advertisers can target consumers around their broader viewing habits rather than on the basis of just one download.

Publishers are also seeing the opportunity that internet-enabled TV offers them to develop new channels of distribution and new revenues and are reportedly rushing to develop widgets to allow consumers to stream their content.  Smartphone magazine reading, as offered by Conde Nast for GQ, will always be niche simply because of the screensize, but internet-enabled TV offers magazine publishers a real opportunity to deliver an experience markedly superior to print and grow their circulations accordingly.

This is all good news for luxury advertisers, as this new technology combined with the trend for TVs to be bigger, slicker and sharper offers an excellent opportunity to showcase the true quality of their products and target more precisely the audiences that crave them. The trick to exploit this media to the full will be to invest heavily in the quality of the content – what will suffice on small screen PCs won’t cut the mustard on a widescreen HD TV.

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By: Graham Painter