Product Placement - Richie

Product Placement
in TV soaps, films and video games,
is it the future of advertising
Abstract:
The purpose of this report is to discuss the various methods of Product Placement, the
different methods used to showcase Product Placement, their advantages and disadvantages and
look at the future of Product Placement. Also the results of our own empirical research and
comparisons of our findings with previous research will be looked at and from this conclusions
and recommendations will be drawn.
Table of Contents :
0-0 Introduction! ! ! ! ! !
1-0 The History of Product Placement
2-0 Types of Product Placement
3-0 The Cost of Product Placement
4-0 Advantages and Disadvantages of Product Placement
5-0 The future of Product Placement
6-0 Results
7-0 Discussion
8-0 References
9-0 Appendix
02
02
07
11
13
16
18
22
24
26
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0 - 0 Introduction
As the consumer market has becoming more fragmented, marketers in recent decade
turned to a variety of communication channels in their efforts to reach customers. One of the
emerging channels that have been exploited frequently in recent years is Product Placement.
Product Placement is not a new concept in the field of promotion. It has been defined as “a paid
product message aimed at influencing movie or TV audiences via the planned and unobtrusive
entry of a branded product into a movie or TV programme” (Balasubramanian, 1994). Product
Placement has also appeared more recently in video games. This report outlines the several
key advantages and disadvantages of product placement. Advantages range from costeffectiveness
to positive audience perception and brand association (Delorme & Reid, 1999 et
al). Comparing with traditional advertising messages, the product placement sponsor’s identity
is kept hidden and these types of hybrid messages enable the sponsor to control the message
content, and in the meantime disguise the commercial origins to appear believable. In addition,
brand placements often involve an implicit endorsement by a celebrity using a specific brand
(Avery & Ferraro, 2000).
1 - 0 The History of Product Placement
Product placement has been traced as far back as to the silent-film days when actors
were filmed in front of restaurants. In exchange the restaurant fed the cast and crew free of
charge. The very first example of Product Placement is thought to have occurred in the 1800s,
in the film Defile du 8u Battalion, where a little wheelbarrow with a soap logo on it was used as
an advertisement for the soap and so a new system of advertising was born.
Since then examples of Product Placement are evident in every decade. In the 1940’s
NW Ayer advertising agency arranged for glamorous film stars to wear De Beers’ diamonds and
other jewelry on screen. In 1950’s in the movie Rebel without a Cause James Dean used an Ace
Comb and increased sales resulted, also in the movie The African Queen Katharine Hepburn is
shown dumping Gordon’s Dry Gin overboard. Although product placement has been a part of
popular entertainment from the very beginning, it did not become a large part of the advertising
strategy until the 1980’s when the practice of product placement evolved into its own industry.
During the following years all of the production studios opened departments specifically
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dedicated to product placement and since then the industry has gained wide spread recognition
as a viable marketing strategy.
Before the advent of movies and television, soap opera radio broadcasts comprised a
large part of popular entertainment. These broadcasts were called “soap operas” because they
often mentioned various soap products within the storyline in exchange for financial support
from their household cleaning manufacturing sponsors, like Proctor and Gamble. In the 1890’s,
when the first films were released, the Lumiere brothers heavily incorporated Lever Sunlight
Soap into their films because of their strong business association with a Lever publicist.
Examples of Product Placement brands in films include:
Budget Rent-a-Truck in Home Alone (1990). Budget was a major
player in car rentals, but its truck-rental business was being obscured by
household names like U-Haul and Ryder. However Budget reinforced their
company name when it put musician John Candy and his merry band along with Jan Hooks
(Macaulay Culkin’s mom) in a Budget moving van making the long haul back to Chicago
(Businessweek, 1998).
Dr. Pepper in Forrest Gump (1994): Tom Hanks
visits the Kennedy White House and recalls, “One of the
best things about meeting the president was you could drink
all the Dr. Pepper you wanted. I think I had me about 12.”
This is an example of an ideal usage product placement
where a major star consumes a product and talks about it.
(Knight Rider/Tribune News Service, Dec 26, 1997).
Ford supplied Agent 007’s new $228,000 Aston Martin
Vanquish in Die Another Day (2002). As well as this, products
such as Revlon, Omega, Phillips/Norelco, British Airways, and
Visa signed a worldwide deal estimated to be worth $100 million
in product value and marketing support (Hollywood Reporter,
April 30, 2002).
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In 1982, the Steven Spielberg blockbuster E.T.
included a scene in which the alien character was
coaxed out of hiding with Reese's Pieces, a new candy
introduced by Hershey. Hershey did not directly pay
Universal Pictures for the product placement, but
instead agreed to sponsor $1 million worth of
advertising for the film. Hershey’s investment more
than paid off as sales of Reese’s Pieces increased by 80%. This success sparked a shift in the
film industry's revenue models, as major corporations looked to replicate this advertising
success with their own products and brands. Other notable product placements in films include
Red Stripe in The Firm. Within a month of the The Firm's release, sales of the Jamaican beer
had increased by more than 50% in the U.S. In another example, the prominence of Ray Ban
sunglasses in Men In Black & Okely in Mission Impossible 2 was the first major instance of
using actors’ faces as valuable advertising. (Fig. 1 & 2)
Figure 2: Okley In MI2
Figure 1: Ray Ban in Men In Black
As with film, heavy use of product placement in television was inspired by one
significant moment. In an episode of Survivor 2000, a popular reality television show, the prize
for one of the challenges was a bag of Doritos and a Mountain Dew. This episode was so
successful in increasing sales of Doritos and Mountain Dew that since then, product placements
have become a main part of the prize winnings in several reality shows including The
Apprentice, America's Next Top Model, Top Chef, Project Runway, and of course, Survivor.
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Product placement is used in traditionally scripted shows as well, including King of
Queens, The Sopranos, and Alias. In one episode of Seinfeld, Junior Mints are a main part of
the plot. While observing an operation on Elaine’s ex-boyfriend, Jerry and Kramer fuss over a
box of Junior Mints, and as a result drop a mint into the patient’s body. This is an example of a
sophisticated use of Product Placement where instead of merely showing the characters using
the product, the writers incorporate Junior Mints into the dialogue and humor of the show.(Fig. 3)
Figure 3: Junior mints in Seinfield
Product Placement has also been incorporated into video games and has become very
popular. Advertisers do not pay video game makers for product placement, instead the deals are
cross-promotion opportunities, and in some cases the game makers pay license fees to use the
likenesses of real products in order to make their games more realistic.
In an early controversial example of product placement in games, in 1990 a group of
doctors trying to reduce teen-age smoking were outraged to find billboard signs with Marlboro
and Budweiser logos in video arcade games. Sega, the maker of the games, explained that the
inclusion of the logos was an attempt to create a real-life situation. Dave Rosen, co-chairman of
Sega’s board, stated, “…there is absolutely no form of paid advertising displayed in any of
Sega’s arcade or consumer video games.” Philip Morris and Anheuser Busch both confirmed
that they had not authorized use of their logos, and asked Sega to remove the logos from their
games.
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Today, advertisers are much more interested in the $24 billion video game industry.
Spending on in-game product placement was estimated at $300 million this year, with
projections of $1 billion in spending by 2010. Nielsen ratings in 2003 showed a 7% decline in
television viewing among 18 to 34 year-old males. This decline was directly attributed to the
growing popularity of video games for individuals in this category.
In addition to the growing numbers, the gaming population is also extremely attractive
to advertisers for several reasons. Gamers have above-average household incomes. Game
consoles are becoming “digital hubs” in the living room, which will result in greater advertising
exposure for all members of the household. Finally, gamers seem to respond positively to
product placement. In one study, 70% of gamers surveyed considered product placement a
positive feature that increased the realism of the game. Studies have also shown that short-term
recall rate of brand names in video games is upwards of 40%, with sports games taking the lead
with a 54% brand recall rate. This makes video game product placement one of the most
effective ways to create consumer awareness.
With Internet connectivity becoming a standard feature in video game consoles,
advertisements no longer need to be preloaded onto the game as advertisements can be loaded
and updated at any time. This allows game studios to sell advertisement space for selected
periods of time, similar to how traditional television advetisements are sold or how the future
virtual product placement spots will be sold. This allows advertisers to commit to purchasing
advertisement space only once the game has been proven to be successful. Internet connectivity
also allows for greater user tracking. Nielsen, the renowned television research company, has
partnered with Chrysler and Activision to track
the effectiveness of Chrysler's Jeep placements in
Tony Hawk's Underground 2. “Tags” on the Jeeps
in the game allow Nielsen to count each time a
Jeep appears on the screen or is used by a player.
The results allow Nielsen to generate extremely
accurate impression statistics, which will result in
more accurate pricing for future advertisement
placements.
Figure 10: A Jeep acts as product placement in Underground 2,
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2 - 0 Types of Product Placement
There are also THREE main types of advertising models;
•The traditional 30-second advertisement
•Product placement advertising
•Virtual Product placement
The traditional 30-second advertisement is centered on the broadcasters, which includes
TV networks, cable and satellite service providers. A broadcaster buys the airing rights for
different TV shows from production studios, and then airs the shows for consumers. To make a
profit, the broadcaster sells advertisement spots to advertisers or ad agencies. The cost for the ad
spot varies according to the number of viewers determined by (Nielsen ratings) and the airing
time (prime time costs the most). During the 2005-2006 television season, the cost of a 30-
second advertisement spot in the top-10 shows ranged from $705,000 (American Idol) to
$293,000 (Two and A Half Men). In this model, the broadcaster sells all the ad spots, and gets
all of the advertising revenue.
Product placement advertising, is a form of advertising that concentrates on a show
before it is even completed, the production studio can sell placement spots either through an
advertising agency/ product placement agency or by reaching advertisers directly. In exchange,
the studio may get a placement fee, bartered goods (i.e. the producer gets a free car), or the right
to use the product in the show, saving some production costs. In this model, broadcasters do
not receive any revenue from product placement and the advertising revenue only goes to
production studios.
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! Product placement strategies can be classified into three main types:
1.implicit product placement
2.integrated explicit product placement
3.non-integrated explicit product placement
(Tiwsakul, Hackley & Szmigin 2005).
1- Implicit product placement:
! refers to the placement of a branded product
within a television programme without it being formally
expressed. These products do not play an active role in the
programme but are often seen on the shelf in the background.
Burger King is given as an example of this type of strategy in
the survey conducted for this report.
Implict - Burger King
2- Integrated explicit product placement:
! is formally expressed within a television programme & defined as an integrated
explicit product placement which plays an active role, e.g. the actors or actresses consuming the
products. Spider Man attaining the Dr. Pepper Can is the example used in the survey for this
strategy.
Integrated - Spider Man getting Dr. Pepper Can
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3-Non-integrated explicit product placement:
concerns branded product which is formally expressed (the sponsor’s name is
presented) but it is not integrated within the contents of the programme. Miranda from Sex and
the City saying; “I want a pepsi now” is an example of this in the survey.
I want a
Pepsi Now
Non-Integrated example
Virtual Product placement then is an advertising model which gives control of
advertising revenue back to the broadcasters. Production studios shoot the shows and include
placement spots. Broadcasters license the shows, sell the placement spots to advertisers, and
then use post-production techniques to populate the placement spots with content. Virtual
product placement is currently common on billboards at sporting events.
Similarly Product placement in video games can range in degree of interactivity. Game
streetscapes can contain billboards with advertisements
for products and products can also be woven into the
story of a game. In the popular Everquest II game,
players can order a pizza from the nearest Pizza Hut
from within the game. And in Ubisoft’s And 1
Streetball, an in-game billboard rotates advertising
content each time the game is played. Then in
Ubisoft’s CSI: 3 Dimensions of Murder, Visa’s fraud
protection service alerts players that a credit card has just been
stolen and the dynamic nature of video games also allows for
rotating advertisements.
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Reverse Product Placement
While traditional product placement refers to integrating a real brand into a fictional
environment, reverse product placement refers to creating a fictional brand in a fictional
environment and then releasing it into the real world.
The restaurant chain Bubba Gump Shrimp Co. was brought to life through its
association with the film Forrest Gump. (Figure 4)
Central Perk Café chains, Over 32 chain world wide after the Famous TV show Friends.
Figure 4: Bubba Gump
Figure 5: Central Perk Café chain
In these examples, fictional products were so popular with viewers that companies
decided to create real-life versions. Reverse product placement can also be used to generate
buzz about a product before its launch. American Apparel, a clothing retailer, launched a line of
jeans in the virtual world Second Life several months before launching them in its real-world
stores. Last year, Starwood Hotels and Resorts launched a sub-brand called Aloft in Second Life
shortly before it appeared in the real world.
Since it is often much less expensive to release a fictional product than to manufacture
an actual product, reverse product placement may someday be used to gauge the public’s
interest in a proposed new product. Companies may release products online, with plans to
create the real versions contingent on public reaction to the online version.
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3 - 0 The Cost of Product Placement
In the 2004 - 2005 television season, over 100,000 product placements were embedded
in the broadcast networks alone: ABC, CBS, NBC, FOX, UPN, and the WB. The product
placement market is growing rapidly and the value of the industry in 2005 was estimated at
$4.24 billion. This figure includes barter, where the use of the product is the payment for the
placement, and also where the Product Placement enriches the storyline or enhances the
character's profile.
Figure 6: Product Placement Market (in US bilions)
In lieu of cash, many negotiations call for the product company to contribute goods to
the production for daily use or special events, for the crew at the finish of filming, as well as
vehicles and legal clearances that can provide significant cost savings to the filmmakers.
Production for a feature film can barter for product or charge from $1,000 upwards.
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services.
5% of product placements are paid for in cash with 95% being exchanges of goods or
Product Placement Agency Fees according to Jay May from Feature this, can expect to
pay annual fees of $5,000 - $150,000 to product placement agencies.
Cost Examples
Image consultant Sam Christensen sites a recent example where Glad supplied paper
products in exchange for the placement of a new paper cup in a film. Glad provided all the
paper products for the movie, for craft service, including paper towels, trash bags, etc and this
in return saved the production company thousands.
Steven Spielberg’s film “Minority Report” reportedly received $25,000,000 in product
placement revenues, which is about one-quarter of its production budget.
Figure 7: Steven Spielberg
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4 - 0 Advantages and Disadvantages of Product
Placement
Product placement is advantageous to advertisers in several ways. Firstly viewers
cannot bypass the product being advertised if it is integrated into the media, otherwise they
would have to skip the whole film or television programme to avoid it. If the product
placement is done well, it may not be noticeable to the viewer, and may actually add to the
experience. With the decline of the efficacy of the 30-second ad, product placement gives
advertisers more opportunities for promoting their goods.
The best examples of product placement are seamlessly woven into the narrative.
However, when it's not done well, product placement can seem forced and obvious, detracting
from the credibility and quality of the experience. Poor product placement can result in viewer
fatigue as a result of too much advertising.
However there are of course disadvantages with the increase in use of product
placement, analysts fear that consumers will develop ad-blindness, becoming so accustomed to
advertisements that they stop noticing them. When an advertisement is repeated too often,
people adapt to their presence and filter them out of their vision.
As well as this poor use of product placement can compromise the integrity of a
storyline. The latest James Bond movie Casino Royale, has been lambasted in the movie for
being too much like “one long commercial.”
Although Casino Royale featured less than half
the number of product placements used in other
movies released at the same time, something
about the ways the products were featured led to
ad-resentment and the audience to feel like they
were being cheated as the whole movie felt like
one long advertisement.
Figure 8: Casino Royal
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The television show Grey's Anatomy recognizes this concern and does a great job
with product placement. Products are not highlighted, but instead function as accessories worn
by the show’s appealing characters. In addition to clothing and accessories, Grey's Anatomy
also features music from emerging artists. Complementary websites such as allow fans of the
show to purchase the jeans, the title character Meredith Grey, was wearing or to download the
track they just heard in the show.
As with TV and films there are many Advantages and Disadvantages with the use of
Product Placement games. Firstly the cost of creating games has risen substantially due to
rising gamer expectations and the increased complexity of console technology. Blockbuster
titles from big-name publishers have seen production costs increase over 100% from the
previous generation of consoles, with some games costing over $60 million and taking over
four years to produce. However, the price users pay for games has remained fairly constant and
as a result, game studios have come to rely on product placement and in-game advertising to
subsidize their development costs and therefore increase profits.
However the disadvantage is that product placement in games may become ubiquitous
and as a result game studios risk losing the good will of gamers. As discussed previously, 70%
of gamers currently think the use of actual products advertisements to the realism of games and
this number is likely to drop as games become more and more saturated with advertising.
Figure 9: Too much product placement may detract from the overall experience (MTX Mototrax,
Activision)
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Gamer fatigue with advertising may already be on the rise. In 2002, EA (Electronic
Arts) struck a deal with McDonald's to include its products in the then popular game Sims
Online. The deal allowed Sims players to open their own McDonald's kiosks, and then improve
their game stats by consuming McDonald's products. This development was not received well
by the gaming community. Columnist Tony Walsh wrote an article for online magazine
Shift.com (now defunct) that called for Sims players to protest and boycott McDonald's within
Sims Online. His article was distributed widely, and resulted in bad publicity for both EA and
McDonalds.
As games become more immersive and realistic, opportunities for effective product
placement will continue to increase. However, as with film and TV, in order to attract the
increasingly ad-savvy and ad-weary gamer, successful product placements need to be woven
into the storyline or context of the game, so that they enhance instead of detract from the game.
These are some of the advantages of Product Placement in video games compared to
Product Placement in TV and films, as it may decrease ad-blindness, as well as allow for the
inclusion of a larger number of advertisements.
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5 - 0 The future of Product Placement
The future of product placement in TV, films and video is being shaped by new
technologies such as digital television (DTV), digital video recording (DVR), and the linking of
products seen on screen (product linking). The movement from analog to digital systems will
allow broadcasters to add interactivity to their shows. Using only the TV, viewers will be able to
find more information about a product featured in a show, without having to interrupt their
viewing experience.(see Fig.10)
Figure 10: Sky HD Plus
In addition, studios are increasingly using computer-generated imagery (CGI) to add
products to a TV show or movie after it has already been produced and edited. Post-Production
Placement or Virtual Product Placement allows studios to sell the same “placement spots” to
multiple advertisers, and then create different versions showcasing the different products. In
addition, placement spots can be customized to suit local needs. For example, a milk carton in a
TV show can display different brands for local airings of the show. (see Fig. 11)
Figure 11: added Graphics
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As sales of games for mobile devices have risen 61% in the last year, it could be
predicted that mobile games could be another outlet for advertisers. Product Placement in
mobile games is still in its infancy, with only one title; EA’s Nascar 07, featuring in-game
advertising. However, EA, the biggest player in mobile gaming, is planning to expand its ingame
advertising and smaller players are likely to follow suit. (see Fig.12)
Figure 12
!
The changing nature of advertising can be observed through the technology consortium
which is backed by one of the largest cable media companies; NBC Network. It will launch the
television industry's first national addressable advertising system. This concept is referred to as
addressable advertising and means a single advertiser with an advertisement placement can
simultaneously target different versions of a commercial at different demographics of cable
subscribers across the entire country. The move is a major step toward a TV experience that is
more internet-like.
The system and method includes targeted micro-advertising that allows buyers and
sellers of advertisements to be paired. Potential sellers of advertising spaces post available
times and buyers can then view and purchase the list of available advertisement space. In some
cases buyers of advertising space may create an auction. The auction creates a market for
available advertising opportunities, purchasers and buyers of the advertising space. The buyer
has the ability to search for particular kinds of businesses and particular locations where he/she
will most likely have interested potential customers. The seller of advertising has control over
what is shown and when it is shown in their place of business. The advertisements can be
shown over televisions, at a kiosk, or as overlays onto current programming. The system is run
over a network using many servers at a central facility to allow for buyers to find advertising
space, run the auction and payment networks.
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6 - 0 Results
The data gathered for this report was principally analysed in order to establish if Product
Placement was more effective than other forms of advertising and also to determine if it will be
the future of advertising. The questionnaire utilized for this report can be found in the
appendix.
Further examination of the results obtained from this report also highlighted some
interesting findings. When participants were asked the following questions:
Do you think Product Placement will be the main advertising method in the future
The majority agreed with the statement and believed Product Placement will be playing
a leading role in the future commercial world and in particular with soft drinks and online
advertising was thought to be one of the main methods.
Even those who were more skeptical of Product Placement being the main method of
advertising in the future agreed it will be much more prevalent and will definitely grow. Others
felt advertising itself is very current and entertaining and so won’t surrender completely to
Product Placement and that you will still need advertisements to show the features of a product.
Figure 13
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! Name a product you notice out of Product Placement & where did you see it
All Participants could give at least one example of Product Placement and here are the
examples given:
•Podge and Rodge, every week on the table
•Apple mac and Cassino Royale
•Starbucks coffee in the movies
•Macbook in various TV shows and movies
•I phone, Blackberry in sex and the city movies, Apple bee jewellers in the apprentice.
•Dr Pepper & Heineken in friends.
•Pepsi in back to the future
•Sony appears in a lot of films.
•BMW in 007 movies.
•Coke is always in American Shows.
Which form of advertiseing is effective of you and why (Options: Product Placement,
TV advertisements or None).
For those who chose Product Placement, here are a few of their comments: Many
participants admitted that they switch channels when they see adverrisements coming on Tv and
they would not be aware of Product Placement and so it doesn’t have an extreme effect on
them. Because the product is placed in a natural environment in an everyday situation the
product is not in your face. One Participant believed Product Placement works well for highend
products, for example an aston martin in James Bond. And that the effect of it depends on
who is using the product as well i.e if the character is someone you admire the product will be
desirable, however if the product is used by a character you dont like then the effect of Product
Placement will be lessened. As well as this one person found it less annoying than regular
advertisements as they don’t interrupt a show.
None
A participant who chose this option explained that he/she doesn’t really buy much stuff
that’s advertised and reviews most things online. Another participant believed they know too
much about advertising to be tricked.
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TV Advertising
Those who chose Tv Advertising find Product Placement annoying and would not buy
something just because a show endorsed it. They like TV advertising because it is funny. Some
distinguish Tv advertisements as more descriptive and Product Placement to be “very in your
face and pushy” and you could miss Product Placement. (see Fig. 14)
Figure 14
Which of the three advertisements do you prefer (Implicit, integrated & non-integrated)
(see fig. 15)
Implicit: Products do not play an active role in the programme and are often seen
on the shelf in the background:
Opinions on this type of Product Placement vary from it being realistic in everyday life,
with products as backgrounds to our lives. And still think it is not as much in your face and
none intrusive. The Product doesn’t look forced into the shot and they are not watching a film or
Tv proagramme for some advertisment to dominate the scene like non-integrated Product
Placement where the product is formally expressed. But some participants didn’t find it as
effective as Integrated Product Placement.
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Integrated: Products which play an active role, e.g. the actors or actresses
consuming the products:
Just one comment was raised with regards this form of Product Placement and one
particular Participant felt that “as long as the product can help the hero to finish his job its
fine”.
Non-integrated: Products which are formally expressed ( the sponsor’s
name is presented) but it is not integrated within the contents of the programme.
Only one participant prefered this type of product Placement.
Figure 15
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7 - 0 Discussion
The present study aimed to assess if Product Placement in TV soaps, films and video
games, will be the future of advertising. The research was conducted using both quantitative
and qualitative research techniques, which involved the administration of surveys among
college students. The results of this survey suggest that Product Placement is the most effective
type of advertising in comparison to the traditional 30-second advertisement.
The various types of Product Placement, the cost of Product Placement, the advantages
and disadvantages of it and the future of Product Placement were all discussed in this report.
This study supports the findings made by a large body of research, as mentioned above. Out of
the 12 people surveyed, 75% admitted that product placement is more effective on them than
TV advertisements. The results also indicated that the participants preferred implicit Product
Placement instead of Explicit or Integrated Product Placement. The report also highlights the
need to become aware of the effect or lack of effect Product Placement advertising in the media
has.
As suggested previously, by Delorme & Reid, 1999 et al there are many advantages of
Product Placement such as cost-effectiveness to positive audience perception and brand
association. It can be concluded that the advantages out weight the disadvantages and this is a
big factor in the success of Product Placement. Some of the best examples are when Product
Placement is woven storyline or context of the specific medium so they enhance it and not
detach itself from it.
Product placement is advantageous to advertisers in several ways, one way is viewers
cannot bypass the product being advertised if it is integrated into the media. And so if the
product placement is done well, it may not be noticeable to the viewer, and may actually add to
the experience. The cost the advertising is also another advantageous factor.
Product Placement has been in existence since the 1800s and has gone from strength to
strength since. The examples provided in this report portray this and therefore it is no surprise
that it will develop even further in the future of advertising. Product Placement will still be
popular until more cost effective ways of advertising emerge that can target a large audience.
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New mediums to advertise Product Placement may continue the method. Video games have a
lot more scope for future developments of Product Placement. Addressable advertising systems
in the TV experience which is more internet like is also another possible future aspect to
Product Placement along with targeted micro-advertising. Advertisers however need to be
aware of the saturation of Product Placement and the effect of ad-blindness which could be
resulting factor.
Due to analysis of previous research and results of analytical research conducted for the
purposes of this report, it can be concluded that Product Placement maybe be overused in its
various different forms, in films, TV programmes and video games and therefore might become
less effective as an advertising medium in the future. Many people do dislike Product
Placement but also find it more effective than TV advertisements, with Implicit Product
Placement being the most preferred form.
While efforts were made to ensure that no confounding variables impacted upon the
results, there were certain factors, which could have infringed upon results of the present study.
For example, the questions in the questionnaire itself were perhaps not adequate enough to
extract sufficient information of the purpose of this report. Gender is another factor that could
have slightly skewed the results, as there was not an even number of sexes assessed. Another
problem was the participant sample used, it was a small sample size of just 12 participants and
it only used college students from age 22 up. A more accurate study would have a larger
sample size from a wider range of participants.
There is no dispute that there is a requirement for further research into the effective
methods of Product Placement advertising. Mobile games needs to be researched more,
particularly in how it could be the future for Product Placement advertising. It is an emerging
industry that is still growing. Micro - advertising also will need to be assessed in the future in
terms of its development and success as an advertising medium. An assessment of the
advantages and disadvantages in more depth as well as further look into the issue of celebrity
endorsements and Product Placement.
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8 - 0 References
•Schudson, M. (1984), “Advertising as capitalist realism”. A d v e r t i s i n g E d u c a t i o n a l
f o u n d a t i o n . E - I S S N 1 1 5 4 - 7 3 .
•Gutnik, L, Huang, T., Blue Lin., J & Ted Schmidt, (2007), “New Trends in Product
Placement”, Strategic Computing and Communications Technology.
•Lai-man, S., and Susanna Kwok Wai-yee (2008), ”Predicting the effectiveness of product
placement: a study on the execution strategy and impacts on hierarch of effects”, The Chinese
University of Hong Kong Department of Marketing: Oxford Business & Economics Conference
Program. ISBN: 978-0-9742114-7-3.
•Avery, Rosemary., J, and Rosellina Ferraro (2000), “Verisimilitude or Advertising Brand
Appearances on Prime-Time Television,” Journal of Consumer Affairs, 34 (2), 217—244.
•Balasubramanian, Siva K. (1994), “Beyond Advertising and Publicity: Hybrid Messages and
Public Policy Issues,” Journal of Advertising, 23 (December), 29—46.
•DeLorme, Denise E., and Leonard N. Reid (1999), “Moviegoers’ Experiences and
Interpretations of Brands in Films Revisited,” Journal of Advertising, 28 (2), 71—95.
•Tiwsakul, Hackley and Szmigin (2005), “Explicit, non-integrated product placement in British
television programmes”, International Journal of Advertising, 24(1), pp.95-111.
•“How Product Placement Works”, Howstuffworks, http://money.howstuffworks.com/productplacement.htm
•“Intel, McDonalds enter Sims’ world”, ZDNet, http://news.zdnet.com/
2100-9595_22-958098.html
•“Opinion: ‘Reverse Product Placement’ Game’s Next Big Thing”, Gamasutra, Nov. 30, 2006,
http://www.gamasutra.com/php-bin/news_index.phpstory=11903
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Product Placement! -24- Aladdin Kishk & Colette Keely

•BrandChannel.com, http://www.brandchannel.com/brandcameo_films.asp
•Brightman, James. “Study Looks at Brands Gamers Recall from In-Game Ads”, Phoenix
Marketing International, http://www.phoenixmi.com/about/news/travel_leisure/
2006110629.phtml
•Brown, Erika. “Product placement on the rise in video games” Forbes.com, http://
www.msnbc.msn.com/id/13960083/
•Cohen, Nancy. “Virtual Product Placement Infiltrates TV, Film, Games”, Tech News World,
http://www.technewsworld.com/story/48956.html
•Edery, David. “Brand Genesis in Games”, Jun. 14, 2006, //www.edery.org/2006/06/brandgenesis-in-games-2/#more-234
•Edery, David. “Reverse Product Placement in Virtual Worlds”, Harvard Business Review,
00178012, Dec2006, Vol. 84, Issue 12.
•EMW, http://www.entmediaworks.com/solution_starstyle.htm
http://www.brandweek.com/bw/news/recent_display.jspvnu_content_id=1003538681
•Nielsen Wireless and Interactive Services, “The State of the Console”, The Nielsen Company,
Q4 Nielsen Wireless and Interactive Services, “The State of the Console”, 2006http://
www.nielsenmedia.com/nc/nmr_static/docs/Nielsen_Report_State_Console_03507.pdf
•Product Placement News, http://www.productplacement.biz
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9 - 0 Appendix
- Questionnaire -
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Product Placement! -26- Aladdin Kishk & Colette Keely

Survey
Gender
Male
Female
Age
16-21 22-30 31-45 45-65 66-Up
How Often you watch TV
•more than 4 hours Daily
•Less than 4 hours Daily
•Occasionally watch tv
•rarely watch t
How do you feel about Tv ads
Love it Like it Its Ok annoying Yuk
Nothing
How do you feel about Product Placement
Love it Like it Its Ok annoying Yuk
Nothing
Which form of advertisement is most effective on you Why
Product Placement Tv Advertising None
Why
Name a product you noticed out of Product Placement & Where did you see it
Do you think Product Placement will be the Main advertising in the future

Which One of the Three following Ad you prefer and why
Products do not play an active role in the programme
and often seen on shelf at the background.
Burger King
Products which plays an active role, e.g. the actors or actresses consuming the
products.
Spider Man getting Dr. Pepper Can
Products which is formally expressed
(the sponsor’s name is presented) but
it is not integrated within the contents
of the programme.
I want a
Pepsi Now
None
Thank You