branded entertainment: using product pl t t r h c i ...their content but if product placement is...

Branded Entertainment: Using Product Pl t t R h C i thPlacement to Reach Consumers in the New Media Environment

Transitioned Media ConferenceRachel Mueller-Lust

May 21, 2010

Confidential & Proprietary • Copyright © 2010 The Nielsen Company

“Product placement is a small price to sell your soul for.…

Product placement is a line that marketing and editorial shouldn't cross....

If you're a brand with integrity, people will want you in their content but if product placement is allowed wetheir content, but if product placement is allowed, we won't pay for it.”

June 1, 2010 Confidential & ProprietaryCopyright © 2010 The Nielsen Company

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Dr. Pepper Product Placement in 90210 on The CW television networkin 90210 on The CW television networkApril 14, 2009


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The Critics and Bloggers Panned It

“Were they kidding with that tonight? Tonight's episode of deserves an award for the single mostof deserves an award, for the single most egregious example of product placement in the history of television. Once or twice, it felt like a … spoof of a , ptelevision show doing product placement. … Product placement was so ubiquitous and clunky it was almost insulting ”insulting.”


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But actual viewers - including Dr. Pepper’s core target - responded quite favorably

Brand RecallDr Pepper in 90210 85%

g p q y

Dr. Pepper in 90210 85%Category Norm 49%Index 173Index 173

Brand Opinion Improvement:Brand Opinion Improvement:Dr. Pepper in 90210: 29%C t N 15%Category Norm: 15%Index 193

1 1 09 12 31 09; Carbonated Soft Drink Category; P13+


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1.1.09 – 12.31.09; Carbonated Soft Drink Category; P13+Limited to Primetime Non-Sports Programming – all airings

And the majority of viewers found the placement to be a seamless fit with the show’s plotlinebe a seamless fit with the show s plotline

62% of Viewers thought it fit “naturally” into the 90120 programp g

Only 4% cited a “lowered” opinion of DrOnly 4% cited a lowered opinion of Dr. Pepper as a result of the placement

1 1 09 12 31 09; Carbonated Soft Drink Category; P13+


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1.1.09 – 12.31.09; Carbonated Soft Drink Category; P13+Limited to Primetime Non-Sports Programming – all airings

In fact, it is very unusual for products to experience negative perceptions from their in-show integrationsnegative perceptions from their in show integrations

BRAND OPINION LINK

36%

2%

Greatly/Somewhat Improved Opinion

Greatly/Somewhat Lowered Opinion

41%Natural and Seamless Fit

PERCEIVED FIT LINK

9.22.08-3.31.09; P13+

2%Somewhat Forced/Forced and Awkward


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9.22.08 3.31.09; P13+Limited to Primetime Non-Sports Programming – all airings

Why the Rise of Branded EntertainmentWhy the Rise of Branded Entertainment such as Product Placement?

What’s the Value for Advertisers?


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The ability to commercial-skip has grown substantially over the last several yearsover the last several years

DVR Penetration Among HHs Thru February 201040%

20%

25%

30%

35%

5%

10%

15%

0%

Jan'0

6Apr'

06

Jul'06

Oct'06

Jan'0

7Apr'

07

Jul'07

Oct'07

Jan'0

8Apr'

08

Jul '0

8Oct

'08Ja

n '09

Apr '09

Jul '0

9Oct

'09Feb

'10

DVR f t f dDVR owners fast-forward more than 50% of all

commercials recorded


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commercials recorded

Ad break clutter continues to rise … comprising nearly 16 minutes of the average programming hour last year6 u es o e a e age p og a g ou as yea

17

15 38 15.46 15.47

15.7616

Min

utes

15.38

15

Non

-Pro

gram

per H

our

14

Avg

Num

N

132006 2007 2008 2009


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2006 2007 2008 2009Source: The Nielsen Company, Primetime Broadcast + Cable TV, Includes national, syndication and local ads, plus PSAs and Promos, Only networks available all 4 years were included

Brands in program have better exposure opportunity and historically have generated 54%opportunity and historically have generated 54% higher brand recall compared to traditional ads

37%40%

50%

37%

24%30%

%

10%

20% Product Placement

Traditional

0%

10% Ad


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Based on non-sports primetime; to control for media weight: new traditional ads in first week of flight included, new IPPs with single program airing included

But it takes two to tango: traditional ads often generate higher purchase intent

CoverGirl Traditional AdCoverGirl/America's Next Top Model Branded Entertainment Vignette

generate higher purchase intent

54%

38%

Brand Recall

27%

42%

Purchase Intent

0% 10% 20% 30% 40% 50% 60%


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9/19/07 – 12/12/07; Among W18-49; Original America’s Next Top Model episode airings only

And 1+1 does equal 3: Ads paired with product placement generated double the recall and doubleplacement generated double the recall and doublethe purchase intent

America's Next Top Model

39% 40%40%

50%p

Other Programming

21%

30%

19%%

10%

20%

2/28/07 5/16/07 & 9/19/07 12/12/07 A W18 49 O i i l i d i i l

0%Brand Recall Purchase Intent


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2/28/07-5/16/07 & 9/19/07 – 12/12/07; Among W18-49; Original episode airings onlyInside vs. Outside Ad analysis limited to only those creative executions which aired both inside and outside ANTM; Purchase Intent is among brand-recallers

Viewers are seeing more major branded entertainment than ever beforeentertainment than ever before

Number of Major Product Placements by Year:O llOverall

5744 57756000

7000

+31%

4401 4458

5744 5775

4000

5000

6000

1000

2000

3000

0

1000

2006 2007 2008 2009


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Includes 12 networks in Primetime with Ad/Sponsor Adjacency

And the rate of growth in scripted programs is even highereven higher

Number of Major Product Placements by Year: Dramas and ComediesDramas and Comedies

10421200

+93%

541

690772

600

800

1000

200

400

600

02006 2007 2008 2009


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Includes 12 networks in Primetime with Ad/Sponsor Adjacency

Yet viewers have actually responded more favorably to placements in the last several years, with consistentlyplacements in the last several years, with consistently negligible negative impressions

Product Placement Trends Over TimeProduct Placement Trends Over Time

Brand Recall

40%

45%

50%

Improved Brand Opinion

25%

30%

35%

40%

Lowered Brand Opinion

10%

15%

20%

Opinion

0%

5%

Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 14'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09

9 24 05 3 31 09; P13+


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9.24.05 – 3.31.09; P13+.Broadcast and Cable, Non-sports, all airigs

Reality programs are the most active genre and offer the most optimal environmentoffer the most optimal environment

Placement Density

Brand Recall

Brand Opinion

ImprovementImprovement

Reality 10 46% 37%

Comedy 3 45% 25%

D 4 38% 30%Drama 4 38% 30%

Jan 1 Dec 31 2009; Primetime Broadcast & Cable Entertainment


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Jan 1 – Dec 31, 2009; Primetime Broadcast & Cable EntertainmentNote: Brand Opinion Improvement is Top 2 Box among brand-recallers; Placement Density includes only those episodes with at least one measured placement

+100% Brand Opinion vs Drama Norm

+76% Brand Opinion vs Reality Norm


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Jan 1 – Dec 31, 2009; Primetime Broadcast & Cable Entertainment

Sometimes being too “organic” means that few viewers take notice…

The passive nature of most early-season integrations

hindered Brand Recallhindered Brand Recall

Dr. Pepper IPP in 90210 Brand Recall Trend

81%

67%70%

80%

90%

46%39% 41% 42%

35%30%

40%

50%

60%

Beverage Category Norm: 41%

0%

10%

20%

Sep-08 Nov/Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09


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If well-executed and relevant, more overt placements can heighten recall without turning off viewers

The passive nature of most early-season integrations

hindered Brand Recall

The strong April Brand Recall score reflect the success of the

‘road trip’ integration

hindered Brand Recall

Dr. Pepper IPP in 90210 Brand Recall Trend 81%

67%70%

80%

90%

46%39% 41% 42%

35%30%

40%

50%

60%

Beverage Category Norm: 41%

35%

0%

10%

20%

30%

Sep-08 Nov/Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09


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Sep 08 Nov/Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09

Implemented well, Program Placements provide Valuable Branding for AdvertisersValuable Branding for Advertisers

Top 10 Most Effective Product Placements on Brand OpinionBroadcast/Cable

Rank Brand Placement Description Program (Network/Air Dates)

Brand Opinion Index

1 Subway Contestants eat at restaurant; trainers describe "Fresh Fit" meals The Biggest Loser (NBC, 2/10 - 11/03/09) 344

2 Kids Crooked House Company assembles kids playhouses in the Gosselin's yard Jon & Kate Plus 8 (TLC, 6/22 - 9/21/09) 300

3 Vaseline Sponsor of miniseries and contest; Clarissa wears Aloe Fresh Maneater (LIFE, 5/30 - 6/1/09) 290

4 Food & Wine Magazine Gail Simmons is identified as working for the magazine Top Chef Masters (Bravo, 6/10 - 8/20/09) 285

5 Cheerios Cereal is recommended as a healthy food; sponsor of challenges The Biggest Loser (NBC, 2/3 - 11/24/09) 266

6 Whole Foods Market Contestants shop for ingredients to use in challenges Top Chef Masters (Bravo, 6/10 - 8/20/09) 261

Extreme Makeover: Home Edition7 CVS Pharmacy Company donates money and provides supplies to families Extreme Makeover: Home Edition (ABC, 1/11 - 11/8/09) 259

8 Mood Designer Fabrics Designers shop at store for supplies for their challenges Project Runway (LIFE, 8/20 - 11/19/09) 259

9 GE Alex and Simon install Monogram appliances in their remodeled kitchen The Real Housewives of New York City (Bravo, 4/28 - 7/7/09) 253

10 Glad Company provides prize to winner; products are used during challenges Top Chef (Bravo, 1/7 - 11/25/09) 242


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Source: The Nielsen Company, 1/1 - 11/30/09

Thank you!y


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branded entertainment: using product pl t t r h c i ...their content but if product placement is...

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