PRODUCT PLACEMENT

Never underestimate the Power of subtle product placement.

Brand recognition increased 29 percent for product placements during highly enjoyable programs.

87 percent of advertisers believe branded entertainment is the key to advertising in the coming year.

Product Placement Effectiveness and Growth

Paid product-placement spending grew almost 34 percent to $2.9 billion in 2007 and is projected to reach $3.7 billion in 2008, a 28 percent growth.

"Longer form branded entertainment is [still] where the money is," said PQ Media CEO Patrick Quinn. "Higher DVR penetration combined with increased TV program product integration helped drive paid product."

Placements on emotionally engaging programs were recognized by 43 percent more viewers.

Research shows that PBP [product brand placement] works on the implicit memory (non-intentional form of memory) that boosts unconscious learning. When placements are enhanced with via attractive actors, experts it aids recall and adds a positive source effect. Consumer are likely to use an "avail-ability heuristic (the ease of recalling specific events) to form decisions. Exposure to PBP gives rise to perceived popularity as people infer what is popular from what is prominent.

31.2 percent of consumers report "considerable" or "some" interest in advertising appearing in product placement in movies.

57.5 percent of TV viewers recognized a brand when viewing a product placement in combination with a commercial. Whereas only 46.6 percent recognized a brand when exposed only to a commercial for that brand.

Consumer Trends and Attitudes

The latest figures from Nielsen show that DVR penetration has climbed to 25 percent of U.S. homes--up 5 percent from nine months ago, as cable and satellite operators aggressively try to persuade customers to take on the devices.

DVR usage is steadily growing and penetration will reach 30.8 percent in 2009, 34.3 percent in 2010 and 37.8 percent in 2011.

By 2011, 45 million TV households, or about 40 percent of all TV households, will avoid nearly all ads within the TV content they watch.

People will watch more TV and video content in the future, not less. They will just be doing it in different ways.

43.5 percent of consumers who have seen at least one instance of TV product placement report "considerable" or "some" interest in this genre of advertising. Product placement ranked 2nd highest behind billboards.

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