
Kenya’s Safaricom is the most valuable non-SA brand, study finds
South African brands again dominate the latest Brand Finance Africa-wide study, but several Kenyan brands put in a strong showing.
PRODUCT PLACEMENT
By our News Team | 2022
TV product placement for cigarettes increases sales by 2% for the tobacco brand shown – as well as for rival brands, researchers find.
New research in the journal Marketing Science, conducted by researchers at the University of Chicago and University of Washington in the US, finds a 10% increase in TV product placement for cigarettes increases sales by 2% for the tobacco brand shown on-screen. Furthermore, it has the same effect on its direct competitors’ sales as well.
The study, entitled ‘Show and Sell: Studying the Effects of Branded Cigarette Product Placement in TV Shows on Cigarette Sales’, notes that, for the most part, these cigarette brands cannot engage in mass advertising such as TV ads, billboards or sports sponsorships.
Photo by Pixabay via Pexels
However, they still do benefit from TV product placement, which allows them to be seen by millions of American TV viewers.
“When people see product placement for a particular brand like Marlboro, retail sales of Marlboro products go up. However, what’s more surprising is that sales of other competitor cigarette brands also go up,” says Pradeep Chintagunta of the University of Chicago.
Product placement encourages smoking in general
“This indicates that product placement isn’t just about getting people to shift the brands of cigarettes they use – but to get people to smoke more overall.”
The researchers combined NielsenIQ PlaceViews data on product placement with NielsenIQ Ad Intel data, then measured the exposure of consumers in different markets to tobacco product placement. This information was then merged with store sales data from Information Resources Inc. to measure the impact of product placement on cigarette sales.
“We find that this kind of product placement does increase the amount of cigarette sales. If regulators are interested in finding additional ways to reduce smoking rates, curtailing product placement for cigarette brands might be a fruitful option,” says Ali Goli, an Assistant Professor at the University of Washington.
Based on these results, the study urges lawmakers to restructure regulations around cigarette promotions and product placements.
Find out more about the research paper here.
South African brands again dominate the latest Brand Finance Africa-wide study, but several Kenyan brands put in a strong showing.
Hypothetically, consumers would even go as far as to pay to prevent their personal information being resold to third parties.
The unveiling of the Top 200 brands by the Marketers Association of Zimbabwe culminates in the Superbrand Awards at year-end.
While culture and history still permeate the North African consumer experience, it is also a region undergoing a dramatic evolution.
Company says order-fulfilment software from the US digitises and optimises the picking, packing, staging and distribution of online orders.
Placing goods that are not on promotion next to ones that are being discounted can have both positive and negative effects.
AzamPesa mobile money wallet set to close the gap between urban and rural areas in terms of access to financial products and solutions?
Survey finds people spend a month of their lives waiting for call centre agents to pick up. So insurer unveils ‘#StopHoldMusic’ campaign.
Top brands of the future will not be focused on the products they sell, but rather on serving an ecosystem of stakeholder needs.
Growth is expected to resume in 2023 at more than double the rate of last year, with the retail sector being the biggest spender.
Non-fungible tokens (NFTs) are usually associated with celebrities and market volatility. But there is untapped potential for marketers.