Press Release - KN Methodology Allows Advertisers to Establish Direct Link Between Product Placement, Consumption

[ press Release ]

KN METHODOLOGY ALLOWS ADVERTISERS TO ESTABLISH DIRECT LINK BETWEEN PRODUCT PLACEMENT, CONSUMPTION

Developed with one of U.S.'s largest advertisers, model can be applied to product placement in any medium

Menlo Park, CA; June 14, 2005: Collaborating with one of the nation's largest advertisers, Knowledge Networks has developed and tested a technique for reliably measuring the return on investment from product placement/integration in TV shows and other media. The new methodology will be presented at the upcoming ESOMAR/ARF WAM (Worldwide Audience Measurement) Congress, June 19-24 in Montreal.

The Knowledge Networks research – which focused on the integration of a beverage product into a major television drama series – showed the product placement had a clear effect on brand image and consumption; but it also suggests that the power of product placement may be greatly reduced as the practice becomes more common.

"Too often we see product placement decisions made using some combination of rudimentary exposure metrics and gut instinct," observed Darren Marshall, Vice President of Client Service for Knowledge Networks and the study presenter at WAM. "The Knowledge Networks approach gives advertisers and media companies a way to show how much the placement impacted actual behavior and sales."

The Knowledge Networks model is based on comparing consumption and image among a group of viewers who were aware of the placement on an unaided basis with a demographically matched group of viewers unaware of the placement. The model is capable of isolating the impact of the placement from other media or demographic factors and producing an ROI measure based on consumption changes in the client's target market. .

The Knowledge Networks study also directly addresses

concerns about the possibility that those aware of the placement may already have been users of the beverage product, and
how product placement can best be applied toward the marketing goals of the client – such as driving trial, creating loyalty, or changing perceptions of the brand.

Knowledge Networks delivers quality you can use—superior methodologies, design, and analysis that give you an edge when it comes to making smart, safe business decisions. KN's unmatched consumer research resources include the only projectable Web-based consumer panel. The company leverages its expertise in brands, media, advertising, and analytics to provide insights that speak directly to clients' most important marketing issues. In addition, Knowledge Networks has built a substantial practice in government and academic research, an area notable for its rigorous methodology standards.