Product placements have grown in recent years and the practice is predicted to increase even further. According to a new “Global Product Placement Forecast” by media economists PQ Media, global product placement spending has rebounded at double-digit rates in 2021 and is forecast to do so again this year. What makes this strategy effective? Decades of research provide us with several useful insights.
Member Only AccessProduct placements have increased and are predicted to grow further. Research provides insights on how to make them effective.
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Is native advertising an effective tool for corporate social responsibility (CSR) communication? A new study analyzed how advertising recognition—and its perceived manipulation—influences responses to native advertisements promoting different types of CSR, focusing on consumers’ attitudes and word-of-mouth intentions.
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Practitioners who develop native advertising campaigns should pay close attention to where they place mentions of their brand. This empirical study found that a poorly written article that is associated with a brand message will lead to negative perceptions about both the brand and the credibility of the news source.
Member Only AccessThis original research focused on content marketing was presented by BBC Global News at the Audience Measurement (AM) conference held in June.
The approach: digital consumers of English language international news age 16+; six markets (Australia, Hong Kong, Singapore, US, Canada and Germany); quantitative survey + facial coding + implicit response testing.
Among the key takeaways:
Native advertising—content designed to mimic a website’s editorial look and feel—is a fast-growing area of the ad business. Native ad spending in the U.S. is expected to top $8.8 billion by 2018. Its growth is being fueled by brands and publishers who are seeking new ad formats that work better on mobile and outperform banner ads.
A recent study of native ads that appeared on the home pages of the top 100 news websites in April found that 71% of the ads failed to provide adequate disclosures and transparency, making it difficult for readers to discern between an ad and actual editorial content, according to Online Trust Alliance, a nonprofit based in Bellevue, Wash.
OTA said it did the assessment to give guidelines to advertisers and publishers, in the hopes of “fostering industry self-regulation.”
The Nielsen analysis says digital branded content generated an average of 86% brand recall among viewers, compared with 65% for a pre-roll ad.
The lift in brand perceptions was higher across other key performance indicators — affinity, purchase intent and recommendation intent. Furthermore, brand content marketers that work with publishers in a partnership saw a brand lift that was 50% higher on average than those marketers that distributed branded content on their own.
Jess Halter – Senior Research Analyst, IPG Media Lab
Kara Manatt – VP, Consumer Research Strategy, IPG Media Lab
Branded content is very effective, and it’s even more effective than traditional video ads. They looked at the best practices for creating branded content and deploying it. They worked with 50 brands across 19 industry verticals. “We surveyed 14,780 people to learn what branded content is across the globe, how to deploy it, and what to take into account when creating it.”
The first thing they needed to do was come up with a working definition of branded content: “content that lives on its own, produced by and for the brand, as opposed to content produced by someone else than the brand affixes itself to.”
They recruited participants in 10 different countries and randomized them into a single test cell.
“We conducted a broad and deep test,” said Manatt. First they wondered, “Do consumers even know the difference between branded content and traditional video ads?”
They created a Content Marketing Score. Participants were asked to rate the video (scored 13%). People see branded content differently—and consider it to be less a form of traditional advertising than traditional video ads. This was a prevailing attitude in Asia, Europe, and Latin America but not the Middle East.
How is branded content different?
Both standard video ads and branded content were considered marketing, but branded content was viewed differently and seen as more entertaining, uplifting, educational, novel and exciting.
Consumers view branded content differently from traditional marketing, and are more likely to characterize branded content in one of the many forms it can take, such as a how-to video, a sponsored show, a brand promotion or entertainment.
How do you optimize branded content?
Branded content was created with the consumer mind-set and provides what consumers want and need to hear. “When you’re providing education to consumers,” said Manatt, “it also makes them think more favorably about your brand.”
How branded content is perceived by country:
Their advice? “Make that connection with your brand really strong.” Even though content with high branding was perceived as a product pitch, it was still considered more informative and equally trustworthy. Branded content inspired a level of trust.
They encouraged brands to try a lot of different strategies:
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IHS analyst Eleni Marouli predicts 2016 ad spending in this Media Post article by Laurie Sullivan. “Advertising to Surpass $500 Billion in 2016” includes the prediction that advertising will rise 5.7% and video will become the new mobile. Initiatives around measurement in the advertising industry are also discussed by Sullivan.
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Source: http://www.mediapost.com/publications/article/265493/advertising-to-surpass-500-billion-in-2016.html
Chuck Martin’s 2016 IoT predictions for Media Post include an extensive list from a variety of cited sources. Beacons, wearables, encryption technology, smart machines, and more are presented in, “2016 IoT Predictions: Big Data, Beacons, Wearables, Security.”
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Source: http://www.mediapost.com/publications/article/265353/2016-iot-predictions-big-data-beacons-wearables.html
Matt Sweeney, CEO of Xaxis North America, presents six of the top trends that will impact advertising in the year ahead. In this article for Campaign Live, “Better Creative, Fewer Ads: 6 Trends That Will Define 2016,” Sweeney predicts that ads will be more relevant and less intrusive.
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Source: http://www.campaignlive.com/article/better-creative-fewer-ads-6-trends-will-define-2016/1377923
The Internet Advertising Bureau (IAB) plans to seek additional clarification from the Federal Trade Commission (FTC) concerning the Commission’s recent Guidance on Native Advertising. Brad Weltman, Vice President, Public Policy at the IAB, discusses his concerns in this IAB press release, “IAB Concerned About FTC Guidance on Native Advertising.” While both organizations agree on the importance of clear disclosure to consumers, they disagree about other points in the Guidance.
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Source: http://www.iab.com/news/iab-concerned-about-ftc-guidance-on-native-advertising/
This December 2015 article from the Journal of Advertising Research examines how consumer behavior across multiple online advertising channels can be used to predict conversions. The authors, Sebastian Klapdor, McKinsey & Company, Munich; Eva Anderl, FELD M, Munich; Jan H. Schumann, Universitat Passau, Germany, and Florian Von Wangenheim, ETH, Zurich, Switzerland, suggest strategies for advertisers to target individual consumers based on this research in this article, “How to Use Multichannel Behavior To Predict Online Conversions-Behavior Patterns Across Online Channels Inform Strategies For Turning Users Into Paying Customers.”
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Source: http://www.thearf.org/journal-of-advertising-research-online-access/