FIND/SVP Study Reveals Branded Entertainment Still Lags Behind Ads in Influencing Consumer Purchase Behavior

FIND/SVP Study Reveals Branded Entertainment Still Lags Behind Ads in Influencing Consumer Purchase Behavior

National Study Unveils Impact of Branded Entertainment on Consumers

NEW YORK, Aug. 19 /PRNewswire/ -- According to a recent national study by FIND/SVP, the nation's only single-source provider of custom business research services, more than half of consumers surveyed (52 percent) said they would be much more or somewhat more likely to purchase a product seen in a commercial versus one featured in a product placement (23 percent). Subliminal effects notwithstanding, the study also found less than one in four Americans believe that a product seen in a show would motivate them to purchase.

Relatively speaking, 9 percent of consumers surveyed said brand cameos during programs would actually make them much or somewhat less likely to purchase the product compared to advertising at 6 percent. FIND/SVP's study asked 1,000 consumers in August 2005 a range of questions online to determine their opinions on traditional TV advertising compared to branded entertainment or product placement.

"Even with the exponential growth of spending on branded entertainment, traditional TV commercials are still having an impact on consumers," said Frank Dudley, vice president of marketing, FIND/SVP, Inc. "These findings speak to consumers' familiarity with the traditional advertisement. However, using branded entertainment within a fully-integrated marketing campaign has the potential to deliver the measurable results marketers' desire."

The study revealed a disconnect with some consumers regarding the intent of all TV marketing practices. Assuming all things equal, when consumers were asked the primary objective of various marketing activities, fewer than half (43 percent) agreed completely that a scene in a show featuring someone using a product was an attempt to influence purchase. Not surprisingly, 73 percent of consumers surveyed said that the primary objective of T.V. commercials was to influence purchase.

Again, TV commercials were more acceptable across all types of programming for consumers. When asked within what type of TV show is most acceptable for them to be exposed to such marketing practices, more than half of the respondents accepted TV commercials for each genre including dramas, situation comedies, talk shows and reality shows. However, consumers surveyed were much more likely to accept product placement in scripted shows (36 percent in dramas, 47 percent in sitcoms) than reality shows (25 percent).

"Innovative marketing strategies will continue to impact and influence consumer purchasing behavior," said Dudley. "Product integration in all forms of entertainment will continue to see success, but this new study proves that the television commercial is not dead."

Consumers surveyed were asked to recall the well-publicized car giveaway on "The Oprah Winfrey Show" earlier this year. Supporting the findings cited above, only one in three (36 percent) actually recalled seeing the episode, and 44 percent of those who saw the show recalled the car she gave away -- a Pontiac. Not surprising of the males who saw the show 51 percent recalled the car, and of the females who saw the show 40 percent recalled the car.

Additional questions generated the following findings:

Digital Video Recorders

* Very few consumers (15 percent) own a digital recording device like
TiVo. However, this number continues to grow rapidly as cable
companies have begun to offer DVRs to cable subscribers.
* When asked the benefits of using digital recording devices like TiVo,
62 percent of consumers said not watching commercials and 55 percent
felt they could watch their program faster by eliminating commercials.

Others said to delay watching a show (76 percent) or rewind or fast-
forward during a program (55 percent).

Children

* Advertising of any sort was mostly discouraged with only one in four
consumers saying it was acceptable to advertise to children 16 or
under. As expected, the younger the child the less appropriate.
However, the younger the person surveyed the more acceptable it was to
advertise to them.

FIND/SVP will be conducting a webinar on Wednesday, September 14, 2005 at 11:00 AM ET. To register for the webinar, please visit http://findsvp.webex.com/event. For additional information on this study, please contact Frank Dudley with FIND/SVP at 212-645-4500 or via email at fdudley@findsvp.com.

About FIND/SVP

FIND/SVP, Inc. (BULLETIN BOARD: FSVP) is a knowledge services company that leverages the expertise and resources of its professional research teams to help its member clients protect and further their business interests. FIND/SVP helps executives enhance their business performance, profit from opportunities and address critical issues through targeted research and advisory work, providing its nearly 1,400 member clients with a competitive business advantage. Founded in 1969, FIND/SVP is the second largest member of the global SVP Group, which serves more than 75,000 executives in 11,000 companies worldwide. FIND/SVP is located at 625 Avenue of the Americas, New York, N.Y. 10011. More information is available by calling 212-645-4500 or visiting FIND/SVP's website at http://www.findsvp.com/.

Forward-Looking Statements

The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans on the Company's financial results. The Company's actual results and the implementation of its plans and operations may differ materially from forward-looking statements made by the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its prior filings with the Securities and Exchange Commission that set forth-certain risks and uncertainties that may have an impact on future results and direction of the Company. The Company does not report on its progress during a quarter until after the quarter has been completed and appropriately disclosed its results.

Press Contact:

Lorne Fisher
954-258-1786
lfisher@fish-consulting.com

Source: FIND/SVP, Inc.

CONTACT: Lorne Fisher, +1-954-258-1786, lfisher@fish-consulting.com

Web site: http://www.findsvp.com/
http://findsvp.webex.com/event

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