New research in the INFORMS journal Marketing Science [...] 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.
“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 (Camel, Parliament, Newport, etc.) also go up,” says Pradeep Chintagunta [...] “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.”