Grocery Purchases Most Influenced by Product Placement

According to recent figures released by Myers Publishing, product placement is among the few advertising channels to see growth in the U.S. this year.

The report, titled “Advertising & Marketing Investment Forecast 2008 – 2011,” forecasts that video game advertising will grow 12.0 percent in 2009. Mobile advertising follows with projected growth of 9.0 percent, trailed by branded entertainment/product placement with growth of 4.0 percent and satellite radio with 3.0 percent.

Cinema advertising is expected to grow 1.0 percent, while cable network TV is expected to also grow 1.0 percent.

Internet advertising spending is expected to shrink 0.5 percent this year, driven by a 3.0 percent decline in display advertising.

While product placement doesn’t seem to have as huge an effect on consumer purchase behavior as some would want to believe, it does have the most influence on consumers’ grocery purchases.

According to BIGresearch, 14.8 percent of all respondents to a survey conducted in October said product placement influenced their grocery-related purchases, followed by electronics with 13.2 percent, apparel/clothing with 11.5 percent, home improvement with 7.9 percent and eating out with 7.6 percent.

African-American respondents were most swayed by product placement in their grocery shopping, with 16.9 percent saying so, followed by 16.7 percent of Hispanic respondents, 15.3 percent of Asian respondents and 14.6 percent of white respondents.

For each category, African-American, Asian and Hispanic respondents were more influenced by product placement than white respondents.

Product placement also appears to be fairly well-accepted by consumers, according to a GfK Roper survey. Twenty-four percent of respondents (2,000 Internet users in the U.S., ages 18 and up) said they found product placement in movies/TV programs/video games annoying, while 15 percent found them “quite acceptable.”

The most annoying forms of ads or promotions were unsolicited e-mails (84 percent), pop-up or banner ads on Web sites (83 percent), Web ads that play before landing/obscure homepage (79 percent) and ads on mobile phones (70 percent).

Source:

http://www.emarketer.com/Article.aspx?R=1007136