Product placement versus traditional TV commercials: new insights on their impacts on brand recall and purchase intention

Abstract

Purpose The purpose of this paper is to compare the effect of marketing communication techniques concerning product placement and TV commercials on brand recall and the purchase intention of consumers. Design/methodology/approach A sample of 420 participants randomly assigned to one of the four scenarios of an experiment watched a selected episode of a Sri Lankan TV show that consisted of commercial breaks. Then, their recall and purchase intention toward the advertised/placed brand were measured using a questionnaire and binary logistic regression was the analytical tool. Findings This research indicated that a combination of product placement and TV commercials forms the highest impact on both brand recall and purchase intention. The next highest impact is created solely by product placement, while sole TV commercials make the lowest impact comparatively. Practical implications This study is beneficial to brands and entrepreneurs looking for the most effective marketing communication methods to promote their brands and products to consumers. Originality/value As an initial study performed on a comparison between two commonly used marketing communication techniques, i.e. product placement and TV commercials, in the Sri Lankan context would also enrich the global marketing literature on the comparative effectiveness of both techniques, where studies are limited so far.