NEXTMEDIUM ANALYSIS FINDS 3.9% OF MARKETER'S MEDIA MIX SHOULD BE DEDICATED TO PRODUCT PLACEMENT AND BRAND INTEGRATION
In-Content Branding Strategy Becomes Critical to the Futures of Marketers
Los Angeles, CA—September 5, 2007—NextMedium, Inc., developer of the only web-based marketplace for brand integration, announced today it has conducted an analysis to determine what percentage of a typical marketer’s media mix should be dedicated to brand integration and product placement. Among the top-line findings is that to optimize their media mix in a DVR-enabled environment, marketers should devote an incremental budget equivalent to 3.9% of their ad spend for in-content advertising.
Note: NextMedium examined two distinct but related categories of in-content advertising—"product placement," which connotes a simpler and more passive exposure (such as a background); and "brand integration," generally more complex exposure types (such as verbal mentions). The findings reflect both of these categories taken as a single ad form.
Using the company's E*IQ formula—a metric drawing on quantitative and qualitative assessments to determine the media value of an integration occurrence—NextMedium estimated the total media value generated in primetime broadcast television, isolated the incremental media value by excluding integration value likely being monetized by networks as part of media buys. NextMedium then used its analytics to weigh rationales for marketers adding brand integration as a standard ad form, including:
- Marketers can meet their reach and frequency objectives with this ad form
- A clear process now exists for accessing predictable and appropriate inventory
- Marketers must make up for lost audiences caused by fragmentation and the DV
Quantitative Rationale – Scale:
- Associations of brands in familiar environments (entertainment content) can serve as proxies for real experiences and can create meaningful messaging to consumers
- A growing body of consumer-psychology research indicates the importance of pull ads (in-content) versus push ads (interruptive) to connect with today’s consumer – as suggested by the DVR phenomenon.
- Findings from Nielsen Media Research’s comprehensive product placement valuation study that indicate product placement in television boosts brand equity and other key metrics.
Qualitative Rationale – Brand Equity:
The findings suggest an incremental allocation of 3.9% of a marketer’s ad spend toward systematic brand integration will help optimize their media mix.
"Marketers are beginning to better understand the importance of brand exposure and usage in life-like experiences—and the data appear to be telling us entertainment can serve as a good proxy for those experiences that help strengthen the equity of a brand," said Hamet Watt, founder and chairman of NextMedium. "We believe this analysis makes a clear case for marketers to add 'brand integration' as a dedicated line item in their media mix."
For more information, please visit www.NextMedium.com.
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About NextMedium
NextMedium is the developer of the definitive technology platform and marketplace for buying, selling and measuring brand integration in entertainment content. With ad-skipping technology becoming ubiquitous, the ways audiences consume entertainment are rapidly evolving, and marketers and content providers are looking for innovative solutions to achieve the return on investment they demand. With its documented ability to influence consumer behavior, brand integration represents such a solution.
NextMedium has partnered with the entertainment and advertising industries, as well as leading measurement firms such as Nielsen, to help establish brand integration as a measurable, tradable ad unit. NextMedium’s marketplace helps marketers systematically find relevant opportunities to connect with audiences, while enabling content providers to cost-effectively monetize their integration opportunities and generate incremental revenue. For more information, please visit www.NextMedium.com.
Media Contact
Robbie Hyman, NextMedium, Inc.
robbie@nextmedium.com
310-839-3100, ext. 7005