Marketers to Use Ads, Product Placement to Reach TV Audience

TV has reigned supreme as the ad format that attracts the most consumers in the U.S. and keeps them watching for hours every day. Marketers are well aware of these statistics, and for now, they typically allocate the largest share of the budgets to the TV format when considering the best media mix. But is TV really that effective for marketers or should they be exploring something else?

Nielsen research finds that TV marketers remain convinced that the format is delivering results. During the 1st quarter of 2011, TV advertising grew nearly 9% over the same quarter in 2010.  In addition to the $18 billion spent on TV ads between January and March of 2011, researchers measured over 5,000 product placements during primetime on major broadcast and cable networks. The top industries that are using TV this year include:

  • Automotive: $2.7 billion
  • Quick service restaurants: $1.1 billion
  • Pharmaceuticals: $1 billion
  • Wireless telephone services: $938 million
  • Motion pictures: $917 million

Consumers say they are more likely to remember ads and placements during specific types of programming. For example, consumers seem to notice brand placements in sitcoms and when a brand appears in a reality show, viewers often make a positive association. And research also shows that “ads that aired during the Super Bowl were 58 percent more memorable than all commercials that aired during regular programming in the first quarter of 2011.”

While the TV format serves marketers well, they should keep in mind that consumers are increasingly spending their time doing other things. And when they are ready to make a purchase, they are also swayed by recommendations from acquaintances (76%), consumer opinions posted online (49%) and mobile ads (for teens – 58%).

[Source: Face Sheet: U.S. Advertising Spend and Effectiveness. Blog​.nielsen​.com. 10 Jun. 2011. Web. 20 Web. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.