Download The Effects of Product Placement

Chapter 1
Introduction
1.1 Background
Product placement is increasing into movies, TV programs, and computer games.
The marketers and movie producers now frequently use placement as the promotion
medium for products or brands. They communicate the product properties to targeted
customers by the way of involving the actors or actress with marketing use of the
product or with mention of the brand to eliminate the audiences’ resistance and also
enhance consumer preference for the product or brand.
1.2 Conceptual Underpinnings of the Study
Our study is focus on what product placement strategies should be employed by
marketers and used in different media. A general definition of product placement for
different media such as movie, television program, magazines, radio, and etc... , that
product placement is a paid product message aimed at influencing audience by the
planned into different media.
In the literature most of the research focused on categorization or characteristics
of different placement or their impact in consumers’ brand memory. Gupta and Lord
(1998) propose that any of those modes can be distinguished. In the scene or where
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the product is made highly visible by size or power and the position on screen.
Babin and Cater (1996) found evidence of product recognition in film whereas
the research of Gupta and Lord (1998) is more fine-tuned; they found a higher recall
of the product after distinguished product placement than after subtle product
placement. Chartier (2000) brand recognition is significantly including the
distinguishing of the placement but it has a negative effect on recall. Russell (2002)
has investigated the role of modality (visual and auditory) and plot connection has the
same in relation to the effectiveness of product placement. The research results
indicate that the audio placing strategy relevant research is the less. Visual and the
audio-visual placing strategy will be a trend in the future. Prominent placement is
more effective to participants than subtle placement. The implement way in integrated
has already growing rapidly than the Implicit PPL way. As the new types of media,
video game, Internet, music video may play a dominant role in the future, the
concerning research should be continue.
1.3 Research Purpose and Question
The product placement is originally a marketing strategy that markets a movie only.
Nowadays, it is a new marketing strategy that many television and radio media,
industry, and ventures will adopt; also, it gradually becomes a controversial issue in
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Taiwan’s society.
Since the product placement has already become a popular issue which in the
public relation environment, it is necessary to explore. This study is focus on how to
utilize the different placing strategy and media to make maximum benefits to
marketers. In light of aforementioned objectives, three major research questions to be
addressed in this article are provided as follows:
1. Which mode of media is the highest used in research of product placement?
2. Which placing strategy used in product placement is the most effective?
3. Which degree on product placement has more effective to product placement?
Which way of implement has more effective to product placement?
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Chapter Two
LITERATUE REVIEW
2.1 Product Placement
Product placement can also be called brand placement. A general definition of
product placement for the content of movie or television program is a paid product
message aimed at influencing movie or television audience by the planned into a
movie or television program (Balasubramanian, 1994). In order to increase brand
awareness, influence the consumer’s attitude positively toward the product, and also
increase the willingness for the consumer to purchase the products.
There have been few studies focused on categorization or characteristics of
different product placement.
Balasubramanian (1994) defined product placement as
a “paid product message aimed at influencing movie (or television) audience via the
planned and unobtrusive entry of a branded product into a movie (or television
program)”. Product placement can also be called “the inclusion of a brand name
product package, signage, or other trademark merchandise within a motion pictures,
television show, or music video” (Steortz 1987, p.22); in addition, the research of
Baker and Crawford (1995, p.2) has also shown that “the inclusion of commercial
products or services in any form in television of film productions in return for some
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sort of payment from the advertiser”.
However, Karrh (1998) considered that some studies didn’t mention some parts.
Steortz’s (1987) definitions only considered visual stimuli and neglected the paid
nature of product placement. Both Balasubramanian (1994) and Baker and Crawford
(1995) definitions have found that the form of placement media but limit the media
involved to motion pictures and television shows.
As it’s discussed below, brand placement cannot always be considered
“unobtrusive”; also, product placement have many forms which involved video games,
music videos, Broadway shows, broadcasts, and even novels. Therefore, Karrh(1994)
considered that the brand placement is better defined as the paid inclusion of branded
products or brand identities, through audio and/or visual means, within mass media
programming.
To sum up, product placement is a way that through the advertisers by paid or
sponsored product to the media makers, including television shows, video games,
movies and novels, etc. In order to switch the mode of product placement which have
involved Visual Only, Audio Only, Audio with Visual; with these ways, it can help
consumer to recognized brand and Corporate Identity System involved to the story.
Thus, the brand can be exposure by naturally and unobtrusively ways to the consumer.
The final object is to establish consumers’ cognition and attitude; also, to impel their
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purchase behavior.
2.2 Modes of Product Placement
There have been many researchers found different aspect of product placement.
Russell (2002) has investigated the modality (visual and auditory) and the connection
of plot has the same relation to the effectiveness of product placement. The research
results show that brand recognition improves when modality and plot connection are
differently. In addition to the definition of the product placement that mentioned in the
study, we will also take a deep research into the way of product placement and the
applied cases. Product placement can be classified by the form of expression or the
strategies; Gupta and Lord (1998) had distinguished the product placement into three
modes by following the placing strategy of product placement. The three modes are as
follows:
1. Visual Placement (視覺置入, VIS): There is only the appearance of the
product, service, brand name, logo, or the other visual elements that can be identified
to a brand.
2. Audio Placement (聽覺置入, AUD): The authors in the program report the
product, service, brand name, logo, or they express the relevant information of brand
with any kinds of audio form.
3. Combined Audio-Visual Placement (視覺與聽覺混和置入, AV): Showing
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a brand and at the same time mentioning the brand name or conveying a
brand-relevant message in audio form.
Besides, Gupta and Lord (1998) also distinguished the product placement into
two modes by the strategic purpose. They based on the degree of product placement
and how obvious it is. The two modes are as follows:
1.
Prominent Product Placement (明顯的置入方式): It means that in the visual
form, there are obvious arrangements which include a big size or a big range
appearance of the brand-relevant message; and in the audio form, the authors in the
program report the brand name repeatedly or in a single sentence.
2.
Subtle Product Placement (隱微的置入方式): it means that in the visual form,
there is only a small range of the brand-relevant message appear in the screen;
however, in the audio form, the brand name will be conveyed with a conversation or
in a non-single sentence way.
According to the three modes and the two degree, we can combine them into six
specific modes as follows:
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Modes of Product Placement Appearance
Visual Placement
Audio Placement
Audio-Visual Placement
Degree
Prominent
Prominent Visual
Prominent Audio
Prominent
of
Placement
Placement
Placement
Audio-Visual
Obvious
Placement
Product
Subtle
Subtle Visual
Subtle Audio
Subtle
Placement
Placement
Placement
Placement
Audio-Visual
Placement
Reference comes from: Gupta and Lord (1998)
Moreover, Russell (1998) used three dimensions to describe the way of product
placement:
1. Screen Placement (螢幕畫面置入) means the product and its logo are purely
visible.
2. Scrip placement (旁白/演員台詞的置入) is a way to convey the purely audio.
Verbal placement when the actors or a voice-over pronounces the relevant message,
perhaps just the brand name.
3. Plot placement (戲劇情節置入). This type of placement is particular
characteristic for the James Bond movies. It is a way to set the product into the TV
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shows and become part of it, then combine the visual and audio placement, in order to
promote the reality of the TV shows.
Then, according to the strategies how the product placement be implemented,
d’Asous and S’equin (1999) classified product placement into two types: implicit PPL
and integrated explicit PPL:
1. Implicit PPL. An implicit PPL is the brand, the firm or the product is present within
the program without being formally expressed: it’s a passive role. For instance, in a
quiz the participants and the host wear clothes with the sponsor’s logo.
2. Integrated explicit PPL. A PPL is integrated explicit when the brand or the firm is
formally expressed within the program: it plays an active role. For instance, in a quiz
the questions asked to the participants concern the sponsor’s products.
As the theory above, they can be briefly classified into two ways. One is based
on the perception of placement (expressive form):
1. Visual Only (VIS), Audio Only (AUD), and Audio with Visual (AV);
2. Screen Placement(螢幕畫面置入), Scrip Placement(旁白/演員台詞的置入), and
Plot Placement(戲劇情節置入).
And the other one is based on the strategic purpose (also the prominent degree of
product placement):
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1. Prominent Placement (明顯的置入方式) and Subtle Placement (隱微的置入方
式);
2. Implicit PPL(含蓄式置入) and Integrated explicit PPL(融合情境的外顯置入).
It can be obviously known that the different modes of product placement both
affect consumers’ purchase interest and the marketing effect. Product placement can
lead consumers to have positive emotion and approval on product.
2.3 AIDA
Marketing is a kind of process that includes a number of different objectives.
Each part will be reached in rotation before the consumer takes every step of
purchasing the product. And it’s widely adopted marketing theory model called AIDA.
In this research, the AIDA theory will be taken at the basic theory.
Edward Strong (1925) developed the AIDA model, breaks down the sequence of
events to:

A - Attention

I - Interest

D – Desire

A - Action
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The first stage describe that advertising grab the audiences’ attention primarily,
then it can be successful in attract to its audience. (Fill, 2002). Secondly, make the
audiences interested to the idea of the product or service; third, the potential customer
will desirable to the product or service. The final stage that Strong (1925) indicated that
getting the consumer to take action because of their desire for the product (Fill, 2002).
2.4 Storytelling approach to marketing
Everyone likes to listen to stories; human being naturally can accept the narrative
narration easier than the other kind of narration. A story can be quickly conveying
values through the story teller in a simple form. That means, this kind of storytelling
approach to marketing can convey the product value fast and accurate.
According to Haung(2006), he defines the storytelling marketing as a marketing
communication which is carrying out through the way of storytelling.
Besides, Maxwell and Dickman (2007) indicate that “the secret of selling is what
it has always been a good story”; it means there must have stories sell then a product
can be sold.
Through the connective relation between stories and marketing, it can be known
that storytelling marketing is a marketing strategy combining the brand story and the
product image.
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Therefore, the storytelling marketing strategy has already been a necessary
marketing strategy. The kind of marketing strategy can arouse consumers’
imagination and interesting to the product and brand. Just like the “Interest” and
“Desire” elements in the AIDA mode.
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Chapter Three
METHODOLOGY
This study uses the meta-analysis methodology to assess the effect of different
media in product placement. Meta-analysis is also called Systematic Review.
Meta-analysis is the statistical technique for combining data from previous studies. A
wide variety of questions can be investigated by using meta- analysis. When the
treatment effect (or effect size) is consistent from one study to the next, meta-analysis
can be used to identify this common influence. When the influence varies from one
study to the following studies, meta-analysis may be used to identify the reason for
the variation.
To examine current trends of data analysis procedures employed by product
placement in different media, this study made extensive search for relevant research
articles from the following four academic researches: Babina, L.A. and Carder, S.T.
(1996), Viewer’s Recognition of Brands Placed Within a Film, International Journal
of Advertising, Gupta, P. B. and K.R. Lord (1998), Product Placement in Movies: the
Effect of Prominence and Mode on Audience Recall, Journal of Current Issues and
Research in Advertising. Percy, L (2006), Are Product Placement Effective?
International Journal of Advertising, Vol. 25 Issue1. Russell, C.A. (2002),
Investigating the Effectiveness of Product placement in Television Shows: The Role of
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Modality and Plot Connection Congruence on Brand Memory and Attitude, Journal
of Consumer Research, Vol. 29, December. The focus was on scholarly articles
employing quantitative approaches to examine the effective on product placement in
different media. A total of 35 articles were included in the final data analysis major
category being analyzed include:
 Television
 Movie
 Magazine
 Video game
 Internet
 Others
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Chapter Four
Data Analysis
To examine current trends of data analysis procedures employed by product
placement in different media, this study made extensive search for relevant research
articles from the following four academic databases: Babina, L.A. and Carder, S.T.
(1996), Viewer’s Recognition of Brands Placed Within a Film, International Journal
of Advertising, Gupta, P. B. and K.R. Lord (1998), Product Placement in Movies: the
Effect of Prominence and Mode on Audience Recall, Journal of Current Issues and
Research in Advertising. Percy, L (2006), Are Product Placement Effective?
International Journal of Advertising, Vol. 25 Issue1. Russell, C.A. (2002),
Investigating the Effectiveness of Product placement in Television Shows: The Role of
Modality and Plot Connection Congruence on Brand Memory and Attitude, Journal
of Consumer Research, Vol. 29, December. The focus was on scholarly articles
employing quantitative approaches to examine the effective on product placement in
different media. A total of 35 articles were included in the final data analysis major
category being analyzed include:
 Television
 Movie
 Magazine
15
 Video game
 Internet
 Others
Table 1
Major Statistical Media Used in Product Placement (2000-2009)
Types of
Media
Total
Techniques
Frequency of different media used by years
Years/
used
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
#
1
1
4
2
2
2
7
3
4
9
35
No. of articles
%
Television
0
0
1
2
1
1
3
1
2
4
15
43%
Movie
1
0
2
0
0
0
1
1
0
2
7
20%
Radio
0
0
0
0
0
0
0
0
0
1
1
3%
Magazine
0
0
0
0
1
0
0
0
0
0
1
3%
Video game
0
0
0
0
0
0
1
0
1
1
3
9%
Internet
0
0
1
0
0
0
1
0
0
1
3
9%
Others
0
1
0
0
0
1
1
1
1
0
5
14%
*If the same media used more than once in an article, it is counted as one media. Some articles used
more than one media; the total media used exceeded the total number of articles reviewed; descriptive
statistics is counted if it is used for major data analysis.
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No. of articlas
Major Statistical Media Used in Product Placement (2000-2009)
5
4
3
2
1
0
Television
Movie
Radio
Magazine
Video game
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Internet
Years
Others
Others
14%
Internet
9%
Television
42%
Television
Video game
9%
Movie
Radio
Magazine
3%
Magazine
Video game
Radio
3%
Internet
Movie
20%
Others
The classified types of media were presented in Table 1, showing the number of
articles in each category and the total percentage of the articles they represented, for
each year and overall. Notes that articles that were classified as multi- media. Since
then these approaches have become more popular, the overall percentages of studies
on television is 43% (15 articles), movie20% (7 articles), radio 3% (1 articles),
magazine3% (1 articles), video game 9% (3 articles), Internet 9% ( 3 articles),
respectively. Among those classified in “others”, 6 articles (17%) were found
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investigating the use of multi-media in improving the media area.
The study of television tools as assessments reached the peak in 2009, with an
overall percentage of 43% (15 articles). Research studies that examined the use of
multimedia were the predominant type in articles published in 2004. It has become
less common after 2005, with an overall percentage of 20% (7 articles). Video game
essay entered the research community in 2006; three articles reviewed in this study
investigated (Balasubramanian, Karrh, &Pawardhan, 2006).
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Table 2
Major Statistical Placing Strategy Used in Product Placement
(2000-2009)
Types of
Modes
Total
Techniques
used
Modes of Product Placement Appearance
Years/
No. of articles
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
#
2
1
4
2
2
0
6
4
5
9
35
Audio
0
Visual
0
Audio-Visual
2
Others
0
0
%
0
0
1
0
1
0
0
0
2
6%
4
0
1
0
4
3
2
3
17
49%
1
0
2
0
0
1
1
3
5
15
43%
0
0
0
0
0
0
0
0
1
1
3%
Others
3%
Audio
6%
Audio
Audio-Visual
43%
Visual
Visual
48%
Audio-Visual
Others
In Table 2, the placing strategy in product placement were coded, showing the
number of articles in each category and the total percentage of the articles they
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represented, for each year and overall. Note that articles that were classified as
different modes. Since then these approaches have become more popular, the overall
percentages of studies on Audio Strategy using rate is 6% (2 articles), Visual Strategy
49% (17 articles), and Audio-Visual Strategy 43% (15 articles). Among those
classified in “others”, 1 article (3%) was found investigating the way of placing
strategy in product placement.
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Table 3
Major Statistical Prominent Degree on Product Placement
(2000-2009)
Types of
Modes
Total
Techniques
used
Modes of Product Placement Appearance
Years/
No. of articles
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
#
3
1
4
2
1
1
5
3
6
9
35
Subtle
0
1
2
0
1
0
2
1
2
1
10
29%
Prominent
3
0
2
2
2
1
2
2
4
7
25
72%
Subtle
29%
Subtle
Prominent
Prominent
71%
21
%
In Table 3, the prominent degree on product placement are presented, showing
the number of article in each category and the total percentage of the article they
represent, for each year and overall. As noted in the statistical/mathematical analyses,
some articles focused on more than one of the categories of modes whiles others do
not discuss some of the categories at all. The most commonly studied modes of
product placement appearance are prominent mode (66%) and subtle mode (29%).
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Table 4
Major Statistical Ways of Implement in Product Placement
(2000-2009)
Types of
Modes
Total
Techniques
used
Modes of Product Placement Appearance
Years/
No. of articles
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
#
3
1
4
2
1
1
5
3
6
9
35
Implicit PPL
(含蓄式)
0
1
2
0
1
0
2
1
2
1
10
29%
Integrated
explicit PPL
(外顯式)
3
0
2
2
2
1
2
2
4
7
23
72%
%
Implicit PPL
29%
Integrated
explicit PPL
71%
Implicit PPL
Integrated explicit PPL
The classified types of modes were presented in Table 4, showing the number of
articles in each category and the total percentage of the articles they represented, for
each year and overall. Note that articles that were classified as different modes. Since
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then these approaches have become more popular, the overall percentages of studies
on implicit is 29% (10 articles), integrated explicit66% (23 articles), among those
classified in “others”, 2 articles (6%) were found investigating the way of implement.
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Chapter Five
Conclusion and Suggestion
According to the results in chapter 4, this study draws the following conclusion:
5.1 Conclusions
This study identified and tabulated research methods and data analysis
procedures from studies in different media of product placement over the past 10
years. In addition, it also identified the types of media, placing strategy, prominent
degree on product placement, and the ways of implement were applied. Percentages
of frequently used statistical techniques, research designs, types of media used in
product placement were presented annually so that their trends and practices can be
assessed.
1.
In the major statistical Media used in product placement (2000-2009)
presents as
a myriad of media, showing the number of articles in each
category and the total percentage of the articles they represented, for each year
and overall. Notes that articles that were classified as multi- media. Since we
have mentioned above then these approaches have become more popular, the
overall percentages of studies on television is the highest 43%, the other as
follow: movie20%, radio 3%, magazine3%, video game 9%, Internet 9%,
respectively.
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These data indicate that research in product placement increase rapidly
over the past ten years. Those highly favored television are areas already
investigated; therefore, future study may switch to those less investigated
modes. Since television has been research for a period of time, Multi-media of
radio and magazine are less investigated modes may either with major degree
of importance or not important at all. They need to be verified by further
studies. As the new types of media, video game, Internet, music video may
play a dominant role in the future, the concerning research should be continue.
2.
According to the research topic from the literature collected randomly in
this study, literature were coded and tabulated to audio, visual, and
audio-visual placing strategy in product placement.
From the statistical analysis in table 2, it is evident that research on audio
placing strategy is lowest. It only investigated on 2004 and 2006; showing that
the decline of audio placing strategy and also correlates with the low
percentage of radio relevant research in table1.
The vast dominance of descriptive statistics used in research on placing
strategy in product placement is the visual placing strategy, and the second
one is the audio-visual placing strategy. In terms of table 2, the visual placing
strategy was investigated in a large number from 2002, and it was sustained
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and continued.
And the researches investigated on audio-visual placing strategy were only
next to the visual placing strategy. And this kind of researches were not only
appears on an average level over the past ten years, but also increased by years.
It shows that the relevant research reach the peak on 2009, which were 5.
Besides, there was a research mentioned about the placing strategy on
olfaction. For example, there will be some marketer set a place in
supermarkets or shopping malls, they cook their food product and provide
costumers eat for free. The smell can attract people to eat the food and interest
their purchase desire. The same placing strategy can also be implemented in
department store. Counter sells in perfume counter will distribute the Perfume
Testing Paper so that customers can smell the perfume before they buy the
product. The table shows only one research investigated this kind of placing
strategy in 2009.
3. In table 3, the finding supports that prominent placements would be more
effective than subtle placement used by media, when it has more information
with brand placed and noticeable figures that reinforce strong possibility to
attract viewers. Accordingly, prominent placement leads better awareness of
placement and more positive affective reaction than subtle placement. The
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results of the analysis to the degree of product placement indicate that
prominent placement is more effective to viewers than subtle placement and in
agreement with Gupta and Lord (1998) that prominence can draw viewer more
attention. Prominent placement provides more information about product
brand in media.
4. This table has the same strategic in ways of implement and degree, two of
these is to evaluate the way of product placement, according to the result of
the research , Integrated explicit PPL is the most effects.
The implement way in integrated have already got 72%, and from the table,
it’s showing that the implement in integrated explicit growing rapidly. (EX:
cocktail in the famous drama sex and the city) On the contrary, the implement
in Implicit PPL in the research from the past ten years, its cease to moving.
This research basic is from d’Asous and S’equin(1999) classified product
placement into two types: implicit PPL and integrated explicit PPL. What
deserves to be noticed is that the marketers had already known the benefit of
integrated explicit, but the implicit should have more opportunities to be
developing.
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5.2 Research Limitations
The research has a number of unavoidable limitations and it is important to
address them.
The method of this research is based on meta-analysis; researcher had collected
the thesis of the past ten years that have related to the product placement. From the
thesis, researcher found out that it was hard to find the thesis before 2005; then
researcher almost based the information after 2005. As the result, the conclusion may
not have well balanced.
5.3 Future Research Suggestion
In the future, there are still some directions can be discussed more deeply:
From this study, it is showing that the movie and television has taken the biggest
percentage than the other media, the researcher suggested the other researchers can do
the different effect in different media research. On the other side, the statistic data in
this study proves that those highly favored placing strategy such as visual and
audio-visual are areas already investigated; therefore, future study may switch to the
less investigated placing strategy-audio. However, the data also indicates there were
in lack of relevant researches on olfaction placing strategy (嗅覺置入策略).
Then, maybe the other researchers can found an effect placing strategy only in
visual or audio. Researchers think it may bring a new benefit in audio media.
29
It is recommended that future study can discussed and investigated more deeply
in these area such as multi-media of radio and magazine, that are less investigated
modes may either with major degree of importance or not important at all. They need
to be verified by further studies. As the new types of media, video game, internet,
music video may play a dominant role in the future, the concerning research should be
continue.
5.4 Research Contribution (general conclusion)
This study has its contributed in these two dimensions:
1. Academia:
a. Advance the understanding of the definition and application of multi-media
in product placement and marketing strategy.
b. A contribution of new directions for future research.
2. Practicality:
a. Suggestions for those marketers which want to adapt different media
placing strategy as one of advertising methods.
30
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