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Marketing: Product
Placement
BMI3C
Trends in Media

Newspapers/Magazines


Growing more or less popular?
Impact of Internet video and PVRs on TV
commercials?
Trends in Marketing

Embed marketing in the media



Less “obvious” than traditional ads
Harder to ignore
Examples:

video
How is it done?



Some marketing agencies specialize in
product placement
When a movie or TV show is being made,
producers and marketing agency will go over
the script and look for opportunities to insert
product placement
Sometimes the script changes to
accommodate a particular brand/product
Impact of Product Placement

Source of financing for movies/TV


Get millions in payments from companies to help
pay for the making of the film
Can reduce number of commercials

Ex: Fox’s 24 aired a one-hour commercial free episode
(though the whole episode was essentially an ad… Ford
is the primary sponsor and their contract gives them
creative control over the script)
Impact of Product Placement

For marketers, may be more effective than
traditional advertisement


Audience can’t “fast forward” or ignore it
Usually subtle…. more subconscious than overt
advertisement
Does it actually work?


Examples:
Red Stripe beer was featured prominently in
the movie The Firm


Saw sales increase over 50% in the month
following the film’s release
Reese’s Pieces featured prominently in the
movie E.T.

Hershey reported a 65% increase in sales
following the film’s release
The Kings of Product Placement

Apple


Appeared in 30% of the Number 1 films of 2010
Iron Man 2

64 Product Placements

About 1 every 2 minutes
Other media?

Product placement in music?



Nelly “Air Force Ones”
Busta Rhymes “Pass the Courvoisier”
Product placement in video games

See article
Product Placement on Rise in Video
Games


What Marketing Activities are referenced there?
How might a video game company perform the
ones not mentioned?