In today’s fast paced environment, it’s becoming increasingly
hard for marketers to capture the attention of their target consumers through commercial advertising. When you think about your own personal habits, do you really sit through television commercials? Something I have mastered over time is flipping to another channel, and timing it perfectly so that when I go back to my original channel, the show is just coming back on. For students, reading another few pages of assigned reading is another alternative to sitting through commercials. For professors, it might mean grading a few more papers. For Facebook users, commercials can be a cue for checking your news feed, or updating your own status.
Change in Consumer Trends
In 1948, the highest rated show, Texaco Star Theater, was watched by 87% of TV households. In 1964, 41% of households tuned in to watch Beverly Hillbillies, which was the highest rated show then. In 2000, the highest rated show, Who Wants to be a Millionaire, was only watched by 11% of households. It has also been recorded that the percentage of people who skip commercials during live TV viewing is around 45%. The decline in the percentage of people’s attention on TV commercials is undeniable. Traditional ways of advertising may not be the most effective way to reach consumers.
Change in Consumer Trends
In 1948, the highest rated show, Texaco Star Theater, was watched by 87% of TV households. In 1964, 41% of households tuned in to watch Beverly Hillbillies, which was the highest rated show then. In 2000, the highest rated show, Who Wants to be a Millionaire, was only watched by 11% of households. It has also been recorded that the percentage of people who skip commercials during live TV viewing is around 45%. The decline in the percentage of people’s attention on TV commercials is undeniable. Traditional ways of advertising may not be the most effective way to reach consumers.
There is an increase in the number of alternate activities we can engage in on a daily basis. The decrease of exposure to television commercials meant
that people were reallocating their time doing other activities. In addition, the
invention of TiVo also made it easier for people who did watch TV to skip through
commercials (72%). Because of this, marketers are forced to come up with more inventive ways to
capture their target consumer’s attention. So the question is, how are marketers exposing consumers to their
products? Today I will discuss two forms of marketing techniques: product placement and merchandising.
Product Placement
Product Placement is a form of advertising that exposes consumers to certain products and brands without making a commercial or print ad; it is meant to be subtle and embedded in something else (most often in movies, TV shows, or events). One of the first successful product placements in movies was Steven’s Spielberg’s E.T (The Extra-Terrestrial) in 1982. The movie’s partnership with Hershey appears to blend in with the movie plot seamlessly. Elliott, the character in the movie who befriends E.T, uses Reese’s Pieces to coax him initially. A quick clip of the movie can be seen here. After E.T.’s inclusion of Reese’s Pieces, sales for the candy increased by 65%.
A more recent example is the
ever-popular Twilight movies, where the male lead played by Robert
Pattinson sports the Volvo C30. In
subsequent films, we can see newer, and different models of the car being
driven by Edward Cullen. The important question to ask is whether or not
product placement is still effective. According to Volvo representatives, sales
have spiked as a result of their partnership
with the Twilight Brand.
Some movies even base their storyline around a certain brand. In 2004, the comedy Harold & Kumar Go to White Castle came out in theaters. The whole premise of the movie is about two friends trying to satisfy their craving for White Castle burgers. Another example is The Italian Job, where a group of thieves pull of a heist using three Mini Coopers. They key is to have consumers notice the product without being told that it is there.
Product placement doesn’t just appear in the movie screen; it is also becoming increasingly popular in TV shows. More recently, shows are getting more brands to sponsor them. An example of this is American Idol, with AT&T and Coca-Cola. E.T’s product placement is one of the earliest examples of product placement. Although product placement is not a new phenomenon (we can trace product placement from the beginning of film making) it is still an effective advertising technique that is widely used today.
Merchandising
Merchandising, in a nutshell, is where products are placed within a store. Believe it or not, many studies have been done to figure out what locations certain products should be placed within a store. The most widely used example is the layout of a grocery store.
Have you ever wondered why the milk and eggs are always located at the back of a grocery store? There is very simple logic behind it all. Milk and eggs are staple items in a household. Even if you don't intend to purchase anything else, you still have to walk all the way to the back, and pass by other products that may entice you to make an unplanned purchase.
When manufacturers fight for shelf space, they usually want the most coveted (and consequently most expensive) position: just slightly below eye level of the average adult. Marketers have observed that when shoppers walk by an aisle, their attention is usually focused on places they can easily make eye contact with. The amount of space a brand occupies also plays a big role. Having less presence within a shelf filled with products can cause shoppers to overlook a certain brand without realizing it's there. A lot of thought process goes into where certain products should be placed. Different products require different shelf space. For instance, products that are meant to attract kids are usually placed at a lower shelf space, so they can ask mom and dad to buy that colorful cereal box that caught their eye.
Another technique practiced by grocery stores takes advantage of the fact that the majority of people are right-handed. Because of this, high margin items are usually placed on the right side of the aisle, and store brands are usually placed on the right-hand side of name brands.
Best Practices
The most effective way to market a brand is to mix and match different techniques (there are many other techniques I did not mention). While it is easier for consumers to disregard TV commercials, it doesn't mean commercials are no longer profitable. Superbowl commercial slots are still being fought over for a premium price year after year. However, as consumer trends change, marketers can no longer rely on a single form of advertising to reach their target consumers. The trick is to recognize where the target consumers spend most of their time, and use that knowledge to your advantage.
Product Placement
Product Placement is a form of advertising that exposes consumers to certain products and brands without making a commercial or print ad; it is meant to be subtle and embedded in something else (most often in movies, TV shows, or events). One of the first successful product placements in movies was Steven’s Spielberg’s E.T (The Extra-Terrestrial) in 1982. The movie’s partnership with Hershey appears to blend in with the movie plot seamlessly. Elliott, the character in the movie who befriends E.T, uses Reese’s Pieces to coax him initially. A quick clip of the movie can be seen here. After E.T.’s inclusion of Reese’s Pieces, sales for the candy increased by 65%.
A more recent example is the
ever-popular Twilight movies, where the male lead played by Robert
Pattinson sports the Volvo C30. In
subsequent films, we can see newer, and different models of the car being
driven by Edward Cullen. The important question to ask is whether or not
product placement is still effective. According to Volvo representatives, sales
have spiked as a result of their partnership
with the Twilight Brand.Some movies even base their storyline around a certain brand. In 2004, the comedy Harold & Kumar Go to White Castle came out in theaters. The whole premise of the movie is about two friends trying to satisfy their craving for White Castle burgers. Another example is The Italian Job, where a group of thieves pull of a heist using three Mini Coopers. They key is to have consumers notice the product without being told that it is there.
Product placement doesn’t just appear in the movie screen; it is also becoming increasingly popular in TV shows. More recently, shows are getting more brands to sponsor them. An example of this is American Idol, with AT&T and Coca-Cola. E.T’s product placement is one of the earliest examples of product placement. Although product placement is not a new phenomenon (we can trace product placement from the beginning of film making) it is still an effective advertising technique that is widely used today.
Merchandising
Merchandising, in a nutshell, is where products are placed within a store. Believe it or not, many studies have been done to figure out what locations certain products should be placed within a store. The most widely used example is the layout of a grocery store.
Have you ever wondered why the milk and eggs are always located at the back of a grocery store? There is very simple logic behind it all. Milk and eggs are staple items in a household. Even if you don't intend to purchase anything else, you still have to walk all the way to the back, and pass by other products that may entice you to make an unplanned purchase.
When manufacturers fight for shelf space, they usually want the most coveted (and consequently most expensive) position: just slightly below eye level of the average adult. Marketers have observed that when shoppers walk by an aisle, their attention is usually focused on places they can easily make eye contact with. The amount of space a brand occupies also plays a big role. Having less presence within a shelf filled with products can cause shoppers to overlook a certain brand without realizing it's there. A lot of thought process goes into where certain products should be placed. Different products require different shelf space. For instance, products that are meant to attract kids are usually placed at a lower shelf space, so they can ask mom and dad to buy that colorful cereal box that caught their eye.
Another technique practiced by grocery stores takes advantage of the fact that the majority of people are right-handed. Because of this, high margin items are usually placed on the right side of the aisle, and store brands are usually placed on the right-hand side of name brands.
Best Practices
The most effective way to market a brand is to mix and match different techniques (there are many other techniques I did not mention). While it is easier for consumers to disregard TV commercials, it doesn't mean commercials are no longer profitable. Superbowl commercial slots are still being fought over for a premium price year after year. However, as consumer trends change, marketers can no longer rely on a single form of advertising to reach their target consumers. The trick is to recognize where the target consumers spend most of their time, and use that knowledge to your advantage.
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