Will consumers be turned on by product placement?

Last week Nestle’s Dolce Gusto became the first example of paid product placement on British television when it appeared on ITV’s This Morning in what is rumoured to be a three- month, £100,000 deal.

But with recent research suggesting that most UK consumers do not believe product placement will increase their likelihood of purchasing particular brands, will product placement change the balance of brands’ marketing mixes? And what should brands consider?

Product placement is nothing new. It has been a feature of films and American television for some time – remember the specific car brands driven in different movies by James Bond or the blurred out Coca Cola cups on the judges’ desk in American Idol.

Indeed the 9.5 minute video for Lady Gaga’s single ‘Telephone’ featured at least ten different brands, including Virgin Mobile, Diet Coke, and Polaroid. And yet, she was accused of commercial opportunism.
So will product placement work for brands in the UK or could it leave consumers feeling dubious about both brand and media property?
Our view is that consumers are not really in a position to judge the effectiveness of product placement. It will likely prove as effective – or possibly more so - than other forms of "ambient" media, but what they can provide are the parameters for acceptability. A gratuitous product taking over a shot or scene will likely irritate whereas a relevant product or brand used in a natural setting or sitting inertly on the sidelines likely to be more acceptable.

Conversely using actual brands rather than either made up brands (bottles of ‘fake’ lager in the Vic on Eastenders) or products with their labels covered (from Big Brother to Blue Peter etc.) could become less distracting and maybe even less noticeable, as there will be less conflict between what we expect to see (familiar, branded products) and what we actually see (made up/covered up).

So the message to brands – make certain your placement clearly makes sense. Don’t be seduced by television, choose the property based on its synergy with the brand and its relevance to your target market (research can help you with this) and ensure the brand or product is set in a correct context. The setting should feel as authentic and 'real' as your brand does in the ‘real world’. If you achieve this, then success is possible when used in selective, tactical bursts.