May 30, 2008

4,151 Product Placements in 38 Episodes for 545 minutes

Filed under: Advertising — Emily Reeves @ 8:40 am

How do we combat that pesky DVR fast-forward button that zips our consumers right through our commercials?  Product placement in the show!  But is it too much?  According to an article in BusinessWeek:

“…American Idol has become as much a marketing showcase as musical slugfest.  Contestants cavort in rock videos to pitch Fords, troop off to Apple to record iTunes tracks, and answer questions brought to you by AT&T.”

“Three years ago, Idol scaled back its sponsors from five to three to limit ad clutter.  But this year it added Apple, figuring it fit the show’s demographic. Meanwhile, advertisers like Ford Motor, which on May 14 unveiled a sportier Focus in a weekly 45-second rock video, became omnipresent.  It’s a lot of plugs to get through.  Idol showed 4,151 product placements in its first 38 episodes this year according to Nielsen Media Research.  That’s up just 4% from ‘07, but the time on screen jumped nearly 19%, to a total of 545 minutes.”

The result?  An aging audience for American Idol.  Those skeptical youngsters are tuning out the product plugs and moms are tuning in instead: the median age of Idol viewers is now 43.

Decrease in TV Advertising?

Filed under: Advertising — Emily Reeves @ 8:05 am

Over the past several years, there has been much speculation that television advertising will eventually go away.  Ratings are down, it is cheaper to buy online advertising–not to mention more targeted–and who watches commercials anyway since the introduction of DVR?  BusinessWeek reported on this year’s upfronts:

“A digitized world has crushed the music industry and is not crushing just about every other medium, too.  But at least when it comes to the hearts and dollars of advertisers, TV remains the tallest tree in the forest….This is America, and even today nothing announces status quite like being on TV.”

“In reality, many top advertisers are moving dollars away from TV very slowly, if at all.”

Even with all the talk of a coming decline in television advertising, the spending doesn’t seem to reflect the movement yet.  What will happen?

March 12, 2008

Media Spending Changes

Filed under: Advertising — Emily Reeves @ 12:46 pm

Reported in Ad Age.