TV NETWORKS are increasingly using programs as advertising vehicles due to oversaturation in traditional promotional space, according to Nielsen Media Research.
Jay G. Bautista, Nielsen Media Research executive director, noted the growing use of TV shows to display and promote products since traditional ad space is already overstretched.
“We are seeing a significant amount of advertising over the acceptable limits in TV already,” Mr. Bautista said. “The current limit is around 18 minutes per hour but we are seeing some programs clocking in more than 22 minutes.”
Among the product categories which resorted most to placements, based on a study spanning April to July this year, were are those that do not usually spend heavily for traditional ad space:
- household appliances (third in placements but 66th in regular commercials);
- audio and video products (fourth in placements, 36th in regular);
- hotels restaurants, resorts, and clubs (seventh in placements, 46th in regular);
- textile companies, fabrics and haberdasheries (ninth in placements, 75th in regular commercials); and
- hospitals, clinics, and medical equipment (10th in placements, 49th in regular commercials).
But heavy traditional ad spenders such proprietary drugs and vitamins, communication and telecommunication, and shampoos and hair products also made it to the list of heavy product placers.
Supplement maker Herbs and Nature Corp. was said to have had the most placements with 16,948, followed by Innove Corp. (8,784) and Sanyo Philippines, Inc. (5,539).
ABS-CBN cornered 58% of the placements while GMA-7 accounted for the rest. The top three shows said to have exhibited the most products were GMA 7’s Go Binggo (2,167) and ABS-CBN’s Umagang kay Ganda (1,125) and Wowowee (782).
Mr. Bautista expects the product placement trend to continue unless viewers complain to regulators about the practice. He said the firm does not have data on rates for such placements.
The research firm estimated traditional ad spending to have increased by 15% to almost P115 billion, with TV again getting the lion’s share or over three-fourths, in the January to August period.
This was not matched by growth in the number of ad spots, however, suggesting that the rise was only due to an increase in rates.
Ad spending for radio grew by a quarter while ad spots increased by 16%. TV ad spending increased by 13% but the actual number of spots grew just 3%. The number of print advertisements, meanwhile, declined by 7% despite an 9% growth in revenues.
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