In this post I want to show five important principles that are relevant to a proper performance and success measurement of product placement — from the perspective of advertising companies. Currently, unfortunately many of them are often not or only insufficiently taken into account. This not only leads to wrong results and recommendations, but can also lead to dangerous actions. Of course we know that this is only in rare cases because of the experts in the marketing departments. Rather, a proper success measurement is often seen as too complex that it would survive the long processes from daily business to the Jour Fixe at the C-level management.
Nevertheless, I want to push the professionalization of product placement and its performance measurement with this text. At the end you will also find specific recommendations on how to handle the issues in operational practice.
1. Look at all relevant dimensions
The success of product placement is mainly defined by three dimensions.
Since each marketing campaign must also be measured at its cost, this dimension is also for product placement of great importance. The measurement of this figure is simple.
The importance of the reach is obvious. The measurement of this figure has become significantly more difficult than it was 30 years ago in the times of internet and smartphones. Nevertheless, there are a number of instruments that can determine the reach across different channels — not as accurate as it is possible in online advertising, but usually sufficiently.
The advertising effect ultimately decides whether the combination of cost and reach has a positive or negative impact on the target audience. The measurement of this dimension is the most complicated and is often neglected.
Each of the named dimensions is equally crucial for the success and must be taken into account when measuring a product placement’s performance.
A high reach at low cost, but negative advertising effects does more harm than good. An excellent advertising effect with good reach, but prohibitive costs would be also not ideal from…