The State of Product Placement 2023 (U.S.)

THE STATE OF PRODUCT PLACEMENT 2023

With content consumption and ad-skipping at all-time highs, brands are increasingly looking for new ways to reach and engage their audiences. Sound familiar? Doing this successfully requires connecting with audiences without interfering with their content consumption but in a way that still drives research, consideration, and purchase.

And we get it: that's no easy feat these days. But don't worry, we're here to tell you there's a way to make that happen—and how to make that a reality for your brand.

SoundThis report shows that brands are increasingly shifting dollars into product placement due to its effectiveness at reaching non-ad-supported audiences, in driving cultural relevance, and providing incremental reach to television spend.

Not only that, but consumers are responding favorably toward product placement, which has been demonstrated to drive action throughout the purchasing process. The low levels of frustration presented in this research speak to consumers’ appreciation for authentic, integrated experiences.

KEY FINDINGS

86%

of U.S. marketers who have tried product placement rate it highly and 81% consider it to be an effective marketing channel.

93%

of U.S. marketers view product placement as an effective means to drive cultural relevance and 91% see it as effective in reaching non-ad-supported audiences.

63%

of U.S. consumers have positive emotions after seeing products or brands in TV content and 47% say they enjoy seeing their favorite brands in shows.

75%

of U.S. consumers have searched for a product or brand online after seeing it on TV or in a film with 57% going on to make a purchase.

OUTLOOK FOR PRODUCT PLACEMENT

MEDIA BUDGETS ARE PROJECTED TO BE INCREASINGLY Redeployed TOWARD PRODUCT PLACEMENT

Consumers report high advertising fatigue.

High income consumers ”deliberately don’t pay attention” to ads and “try to multitask” if they’re stuck in front of an ad.

70% of brands will redeploy at least 10% of their media budget to product placement in entertainment content.

Source: Gartner

NEARLY 91% OF PRODUCT PLACEMENT SPENDING IN THE U.S. IS ACROSS TELEVISION, FILM, AND MUSIC

With TV production in the U.S. soaring as streaming channels use new content to attract and retain subscribers, product placement in TV remains the most dominant form of placement in the U.S. at 75%, followed by product placement in film, and product placement in digital media.

Source: PQ Media

SPENDING ON PRODUCT PLACEMENT IS BEING DRIVEN BY EVER-INCREASING MEDIA CONSUMPTION

Between 2017-2022 content consumption has increased from 50 to 56 hours per week.

The average U.S. adult watched 5.8 hours of TV and digital video per day in 2022.

Source: PQ Media, eMarketer

UNDERSTANDING MARKETERS’ PERSPECTIVES ON PRODUCT PLACEMENT

USAGE OF PRODUCT PLACEMENT IS WIDESPREAD AMONG MARKETERS AND 86% OF MARKETERS WHO AREN’T CURRENTLY USING PRODUCT PLACEMENT ARE WILLING TO CONSIDER IT.

As product placement becomes a more widespread strategy within the industry, virtually all are aware of product placement as a marketing channel.

Awareness has translated into usage, with a large majority reporting that they have utilized product placement in their marketing efforts. This has increased 6% since 2020.

Product placement is still a desired channel among marketers who have not tried product placement, with more than 4 out of 5 reporting they are willing to consider using product placement moving forward.

Total Sample: 349; Q: Have you ever used product placement – the integration of your product or brand into television or film content – as a marketing channel?
Total Sample: 111; Q: How likely are you to consider product placement as a marketing channel in future? (Definitely + Probably + Might or Might Not)

MARKETERS WHO HAVE EXPERIENCE WITH PRODUCT PLACEMENT RATE IT HIGHLY AND CONSIDER IT TO BE AN EFFECTIVE MARKETING CHANNEL

Among those who tried, the majority rate product placement highly.

Over 4 out of 5 of those who have tried product placement consider it an effective marketing channel.

Marketers’ satisfaction rates with product placement have continued to increase along with usage rates. In 2022, more than 4 out of every 5 marketers who have tried product placement rate it highly and consider it to be an effective marketing channel.

Total sample: 349; Q: How would you rate your overall product placement experience? (Top-3-Box on a 10-point scale)
Total Sample: 349; Q: And, how would you rate the effectiveness of product placement as a marketing channel?

PRODUCT PLACEMENT IS VIEWED AS PROVIDING INCREMENTAL REACH TO TELEVISION SPEND

Among marketers who use TV ads/commercials, product placement is increasingly viewed as providing incremental reach, seeing an impressive 29% increase in 2022 compared to 2021.

Total Sample: 277 (Among Those Who Use TV Ads/Commercials); Q: And, which of these do you feel provides incremental reach to your TV advertising spend? Please select all that apply.

91% VIEWED PRODUCT PLACEMENT EFFECTIVE AT REACHING NON-AD-SUPPORTED AUDIENCES AND 93% AT DRIVING CULTURAL RELEVANCE

Effectiveness of Product Placements for Reaching Non-Ad-Supported Audiences

Effectiveness of Product Placement at Driving Cultural Relevance for Your Brand

Total Sample: 349; Q: Which of these media / advertising channels are effective for reaching non ad-supported audiences?
Total Sample: 349: Q; And, which of these media / advertising channels are effective at driving cultural relevance for your brand? Please select all that apply.

MARKETERS RANK THE USE OF AI TO PREDICT RESULTS AMONG THEIR MOST IMPORTANT FACTORS WHEN EXPLORING NEW MARKETING CHANNELS

When asked to rank 16 factors in terms of importance when exploring new marketing channels, the use of AI to predict results ranked from 2nd for top 3 selections at 25% and 2nd in terms of first choice at 9%.

80% of marketers consider AI to be very important when making a decision about a marketing company. This marks a 9% increase over 2020.

Total Sample: 349; Q: When exploring new marketing channels, please rank these factors from the MOST important factor to the LEAST important factor?
Total Sample: 349; Q: How important to your brand is AI when making a decision about a marketing company?

UNDERSTANDING CONSUMERS’ PERSPECTIVES ON PRODUCT PLACEMENT

SEEING PRODUCTS AND BRANDS IN TV PROGRAMS AND FILMS ELICITS POSITIVE EMOTIONAL RESPONSES

The majority (63%) of respondents reported feeling positive emotions (happiness, inspiration, interest, and/or curiosity) after seeing a product or brand in a film or TV programs.

47% say they like seeing their favorite brands and products in TV shows and films.

Total sample: 657; Q: In general, how does it make you feel when you see a product or brand in a TV program or film?

PRODUCT PLACEMENT GENERATES AWARENESS AND IMPROVES CONSUMERS’ OPINIONS OF BRANDS AND PRODUCTS

46% of consumers say they have become aware of a product for the first time after seeing it on TV programs or in films.

Two in every five (40%) are more likely to research a product online after seeing it in a film or TV program, compared to a product advertised on TV, and two in every six say that it improves their opinion of the product or brand.

Total sample: 656; Q: Do you agree or disagree with the following statements?

PRODUCT PLACEMENT IS FAVORED OVER ADVERTISING AND GENERATES BETTER RESULTS

Given a choice, 52% of consumers would prefer to watch a TV program with product placement over advertising.

Product placement generates better recall, is more likely to result in consumers researching products, and generates better connection with products compared to advertising.

Total sample: 734; Q: Do you agree or disagree with the following statements?

RELATABILITY AND AUTHENTICITY ARE KEY

Consumers believe that product placement makes TV programs and films more authentic.

Furthermore, products are more likely to be noticed by favorite and relatable characters.

For marketers, this represents an opportunity to reach consumers when they are highly engaged and receptive.

Total sample: 657; Q: Do you agree or disagree with the following statements?

CONSUMERS’ RESEARCH AND PURCHASE BEHAVIORS

CONSUMERS ARE QUICK TO RESEARCH PRODUCTS AND BRANDS THEY SEE ON TV AND FILMS

Three-quarters (75%) of consumers have searched for a product or brand on at least one platform after seeing it on TV or in a film.

57% of consumers that search for a brand or product after seeing it on TV go on to purchase the same product or a different product from the same brand.

Total sample: 657; Q: In the past 6 months, have you done any of the following after seeing a brand or product in a TV program or film?

PRODUCT PLACEMENT DRIVES ONLINE AND OFFLINE SHOPPING AND POSITIVE WORD OF MOUTH

Total sample: 656; Q: In the past 6 months, have you done any of the following after seeing a brand or product in a TV program or film?

ONE-THIRD (34%) HAVE PURCHASED A PRODUCT SEEN ON TV OR A DIFFERENT PRODUCT FROM THE SAME BRAND ONLINE

Of those who have purchased products online 17% made the purchase as they were watching, 12% did so within two hours, 14% waited more than a day, and 18% took longer than one week.

Total sample: 656; Q: In the past 6 months, have you done any of the following after seeing a brand or product in a TV program or film?

MORE THAN HALF (56%) OF PURCHASES HAPPEN WITHIN ONE DAY OF EXPOSURE

The time lag between exposure and purchase is somewhat unpredictable.

With 44% of U.S. consumers waiting more than a day before making a purchase, and more than half of those waiting more than a week, there is an opportunity for marketers to re-engage these consumers via digital channels to reduce this lag.

Total sample:138; Q: How soon after seeing the product on TV or in a film did you purchase it?

HOW BENlabs CAN HELP YOU GENERATE RESULTS WITH PRODUCT PLACEMENT

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