Effect of product placement labeling on visual product and brand reception – an empirical eye tracking study

Abstract

ABSTRACT Product placement is regarded as a strategic advertising tool for promoting commercial content in the broadcasting industry to promote sales or brand recognition via audiovisual media. Considering the opportunistic aspects of unfair competition and adverse implications on consumer behavior, regulations have been stipulated in many countries regarding product placement disclosures. Moreover, as further research is necessary to understand the impact of product placements on consumer behavior, a visual reception experiment and supplementary reception survey was conducted to investigate the effects of product placement labeling on consumer perceptions and memory performance. The findings of this study suggest that the insertion of product placement labeling had a noticeable impact on gaze behavior, indicating a perceptual response to the insertion and a subsequent alteration in brand related visual focus. The inclusion of labeling results in a higher frequency and duration of eye contact with brand logos, which is consistent with theoretical expectations of increased cognitive processing. A follow-up survey on reception showed positive effects on memory performance for the brand products displayed.