24% of TV viewers remember KFC Famous Bowls, 22% remember Nintendo Wii

Despite the fact that advertising spending was up from $271 bln in 2005 to $285 bln in 2006, 81% of consumers could not name one of the top 50 new products launched in 2006, an all-time high for lack of recognition, up from 57% the previous year. 3% of Americans polled said they received new product information from TV commercials or infomercials. When the study looked at how people learned about new products and what influenced them to purchase, free samples lead the strength of influence index with 66%, followed by received a coupon with 55%, and recommended by family and friends and television commercials or infomercials tied for third with 46%. When asked the likelihood of buying a new product after sampling, 96% said they were very or somewhat likely to buy a product they sampled.

Recognition of new products launched
Factors 2006  2005  2004  2003  2002 
Could Not Recall One New Product 81% 57% 56% 50% 33%

Spent on Advertising, bln.

$285 $271 $268 $249 $233

Number of Products Launched

32,624  29,294  31,185  33,678  31,785 
Source: AdWeek

Television commercials received mixed reviews from consumers as 83% stated they enjoy watching commercials on TV at least sometimes, but 70% stated they try to avoid commercials. Of those who avoid TV commercials, 16% used OnDemand or Tivo and 79% leave the room or do something else. After viewing a television ad, 64% said they were very or somewhat likely to visit a company or product’s Web site. Moving into the Internet world, online advertising was named by 21% of those polled as a way they learned about new products 2006, and online articles or product reviews were named by 15% as a source of new product information.

24% of consumers polled online reported KFC’s Famous Bowls as the year’s Most Memorable New Product Launch. The remaining Top l0 2006 Most Memorable New Product Launches include: Nintendo Wii at 22%; Glade PlugIns Scented Oil Light Show at 19%; McDonald’s Snack Wrap at 17%; Activia Yogurt at 11%; Dr. Pepper Berries & Cream at 11%; Gillette Fusion PowerTM at 10%; Wish-Bone Salad SpritzersTM at 9%; Crest Whitestrips Renewal at 8%; and T.M.X.TM Elmo at 8%.