BIGresearch Analysis Shows Product Placements Not Created Equal

More Influential on African American, Asian and Hispanic Consumers

Marketers and advertisers seeking to make the most out of slashed budgets will find some groups are more influenced by product placements than others. According to BIGresearch's June 2008 Simultaneous Media Survey (SIMM12) of 17,231 consumers, the effectiveness of product placements varies by product category and consumer group.

Year over year, product placement influence has grown, providing marketers a good option to reach advertising-weary consumers. Consumers indicate product placements have the most influence on their grocery purchases with 14.8% saying so, up from 13.0% one year ago (SIMM10, July 2007). Electronics (13.2% vs. 12.8% in 2007) and apparel (11.5% vs. 10.3% in 2007) follow to round out the top three categories most influenced by product placements. As marketers search for ways to increase marketing ROI, product placements are a viable option, particularly when targeting specific ethnic groups. African American, Hispanic and Asian consumers are more likely to be influenced to buy electronics, grocery and apparel from product placements.

Influence of Product Placement On Purchases by Product Category & Ethnic Group

                               White /     African
                     All      Caucasian    American     Asian      Hispanic
Grocery             14.8%       14.6%       16.9%       15.3%       16.7%
Electronics         13.2%       11.5%       20.2%       18.0%       18.3%
Apparel             11.5%       10.4%       15.0%       17.0%       16.9%
Home Improvement     7.9%        7.1%       11.2%       10.2%        9.9%
Eating Out           7.6%        6.8%       10.3%       10.0%       10.3%

Source: BIGresearch SIMM12, n=17,231

For more complimentary findings on media influence from the SIMM12 survey, please click the following link: http://info.bigresearch.com/.

"Though the use of product placements is growing, they must be carefully planned," warns Gary Drenik, President & CEO of BIGresearch. "Today's savvy consumers are in control of the market and recognize when advertisers are trying to manipulate them. However, when executed effectively, product placements can serve as a spring board for creating highly influential word of mouth among specific consumer groups."

When it comes to electronics, almost half of Caucasian (45.8%) and Asian (44.0%) consumers indicate their purchases are influenced by word of mouth. 41.1% of African American consumers say the same when it comes to grocery. Dining out purchases, however, appear to be most affected by word of mouth.

Influence of Word of Mouth On Purchases by Product Category & Ethnic Group

                               White /     African
                     All      Caucasian    American     Asian      Hispanic
Eating Out          52.9%       56.2%       45.8%       43.5%       44.1%
Electronics         44.4%       45.8%       42.2%       44.0%       40.6%
Grocery             40.7%       41.5%       41.1%       37.0%       39.1%
Home Improvement    35.2%       37.2%       29.3%       31.8%       31.6%
Apparel             34.3%       33.3%       38.6%       37.2%       37.5%

Source: BIGresearch SIMM12, n=17,231

About BIGresearch

BIGresearch is a consumer intelligence firm providing solution-based insights of consumer behavior, present and future, in areas of products and services, retail, financial services, automotive and media. BIGresearch conducts the monthly Consumer Intentions and Actions Survey (CIA) of 8,000+ respondents and the semi-annual Simultaneous Media Survey (SIMM) of 15,000+ respondents. More information is available at http://www.bigresearch.com.