Download Picture-Perfect Placement: The Relative Effectiveness of

Running head: THE EFFECTIVENESS OF PRODUCT PLACEMENT
Picture-Perfect Placement: The Relative Effectiveness of
Product Placement Versus Other Forms of Media Advertisement
Juan P. Corrales
University of North Florida
Running head: THE EFFECTIVENESS OF PRODUCT PLACEMENT
Picture-Perfect Placement: The Relative Effectiveness of Product Placement Versus Other
Forms of Media Advertisement
Introduction
The use of media for commercial purposes is not a new concept. Since the advent of
broadcast and print media, marketers have found creative ways to promote brands, products
services, ideas, and agendas using these media to spread their message.
There are times, however, when more conventional advertisement methods may not seem
quite as effective as they did before, whether because the advertisement may not seem appealing
to the intended audience or simply the fact that many individuals are actually repelled by
advertisement. These attitudes toward advertisements lead such audiences to divert their
attention from the advertisement, by changing channels, skipping or fast-forwarding recorded
video (Williams, Petrosky, Hernandez, & Page, 2011). Other reasons for the decline in
advertising include the fragmentation and proliferation of media (Mackay, Ewing, Newton, &
Windisch, 2009), consumer sophistication (Chan, 2012), and media congestion (Lehu, 2007).
Also, the rise of digital recording devices such as DVRs and TiVo make it easy for audiences to
avoid conventional advertising (Williams et al., 2011; "Effectively Measuring Product
Placement," 2006). In such cases, a more creative approach may be necessary to achieve higher
levels of brand recall.
This is where product placement comes into play. Product placement (also referred to as
"brand placement") has been defined as the "purposeful incorporation of commercial content into
non-commercial settings" (Williams et al., 2011). A more specific definition is provided by
Hudson and Hudson (2006), and that is "the integration of advertising into entertainment content,
Running head: THE EFFECTIVENESS OF PRODUCT PLACEMENT
whereby brands are embedded into storylines [sic] of a film, television program, or other
entertainment medium." It is this second definition of product placement that we will focus on
for the purposes of this project.
Review of Literature
Product placement has been noted to exist as early as 1890, when soap brand Lever
Brothers placed their product in early films (Hudson & Hudson, 2006). Since then, it has been
seen in almost every form of media, from paintings to theater works to even songs and novels
(Lehu, 2007; Williams et al., 2011), but has been particularly noted in films throughout the
decades (Lehu, 2007).
Despite having apparently originated in the nineteenth century and seeing its inclusion in
various media platforms since, several authors point out the fact that product placement had its
defining moment with the release of E.T.: The Extra-Terrestrial in 1982 (Chan, 2012; Hudson &
Hudson, 2006). The release of this film was followed by a significant increase in sales of Reese's
candy (Chan, 2012; "Effectively Measuring Product Placement," 2006). It is important to note
that the most successful attempts at product placement have been those that have combined
marketing and entertainment by weaving products into the actual entertainment content and
incorporating the brand or product into the plot, thereby forging a "stronger emotional
connection with the consumer" (Chan, 2012; Hudson & Hudson, 2006). Such is the case with the
aforementioned film, where the use of Reese's candy by the characters was an important plot
element.
It is worth noting that product placement in modern times is not necessarily limited to
film and television, as it is also notable in sports broadcasts, primarily in the form of logos on
Running head: THE EFFECTIVENESS OF PRODUCT PLACEMENT
uniforms (team sponsorships), banners in the arenas and stadiums, and perhaps more
conspicuous of all in the multitude of logos, brand names, and company references seen in
NASCAR racing. Still, more studies have been conducted on placement in other forms of media
(namely film, television series, and video games), thus the focus of this project will be on
product placement in these areas.
According to Williams et al. (2011), the purposes of product placement include the
following:
...achieving prominent audience exposure, visibility, attention, and interest;
increasing brand awareness; increasing consumer memory and recall; creating
instant recognition in the media vehicle and at the point of purchase; changing
consumers' attitudes or overall evaluations of the brand; changing the audiences'
purchase behaviors and intent; creating favorable practitioners' views on brand
placement; and promoting consumers' attitudes towards the practice of brand
placement and the various product placement vehicles.
With these goals in mind, it is necessary to employ a system of measurement that will accurately
determine whether these goals have been achieved successfully.
Existing studies tend to vary in opinion regarding the effectiveness of product placement
(Chan, 2012). First, there are those who believe product placement is a genuine and effective
form of advertising that has its advantages over other media advertising. As seen in "Effectively
Measuring Product Placement ROI," (2006), for example, "Product placements generate a thirdparty endorsement (even if it’s passive) that can influence even the most savvy viewers to
purchase and/or adopt a brand." Also, in the research conducted by Mackay et al. (2009), the
results showed that there was an increase in positive attitude toward the brands after the
Running head: THE EFFECTIVENESS OF PRODUCT PLACEMENT
participants were exposed to product placement. But then there are those who see the negative
aspects of product placement, although this perspective seems to stem primarily from the
potential ethical implications of product placement and its effect on entertainment (Hudson &
Hudson, 2006; Williams et al., 2011). Still, despite any possible negative response some
consumers may have, more firms and companies are opting for product placement in lieu of
more traditional methods due to the notable success of placement in entertainment media (Chan,
2012; Hudson & Hudson, 2006). This apparent trend toward an increase in product placement
would serve to validate its effectiveness as compared to other advertising methods, leading to the
following hypothesis:
H1: Product placement results in a higher brand recall than any other form of advertisement.
Methodology
In order to get a fairly accurate representation of consumer responses to product
placement, we must examine audiences that encompass a broad spectrum. Since users of various
media are found in every demographic group, stratified random sampling will be employed in
order to more accurately represent every demographic present in the broad range of audiences.
This will be achieved by sampling individuals from all age groups and racial and ethnic
backgrounds, both genders, and any other applicable criteria among the different societal strata.
A stratified random sample of persons will be drawn from participants all across the United
States.
Once our sample has been obtained, participants will be given a pretest questionnaire to
determine current brand attitudes and behavior. Measurements are taken for items such as
frequency and quantity of purchases (Fpurchase, Qpurchase) and dollar amounts spent (Dspent) on
Running head: THE EFFECTIVENESS OF PRODUCT PLACEMENT
certain brands. The following brands are examined using the assigned variables listed above:
Coca-Cola, BMW, and Burger King. Any pre-existing attitudes and behaviors toward the brands
are used as a baseline to be compared to attitude and behavior after exposure to placement. An
experiment will then be conducted wherein participants are exposed to a number of placements
in various media (movie, television sitcom, and music video) in addition to a number of
conventional advertisements (i.e. “traditional” ads on television, radio, etc.). Participants would
then be issued a follow-up questionnaire at a later time seeking information regarding recall and
attitude toward the selected brands, and the gathered information would be recorded and
processed for analysis.
The procedure above (including sampling) will also be carried out using a control group,
with the difference that they will only be exposed to traditional forms of advertising mentioned
above and not the placements.
In addition to the experiment, a content analysis must also be conducted to ascertain the
actual amount of occurrence of each brand or product in each of the selected media classes and
vehicles.
Alternatively (or perhaps in addition) to the experiment above, a survey can also be
conducted to assess consumer responses to product placement. The focus of the survey would be
to gauge the effects of placements on consumers by determining attitudes before and after
exposure using a similar approach as with the experiment.
Running head: THE EFFECTIVENESS OF PRODUCT PLACEMENT
References
Chan, F. F. Y. (2012). Product placement and its effectiveness: A systematic review and
propositions for future research. The Marketing Review, 12 (2), 39-60.
Effectively measuring product placement ROI (2006). Retrieved October 12, 2012 from
http://c.ymcdn.com/sites/www.pmalink.org/resource/resmgr/research_members_only/tren
d_mar06.pdf
Hudson, S., & Hudson, D. (2006). Branded entertainment: A new advertising technique or
product placement in disguise? Journal of Marketing Management, 22, 489-504.
Lehu, J. (2007). Branded Entertainment : Product Placement & Brand Strategy in the
Entertainment Business. London: Kogan Page.
Mackay, T., Ewing, M., Newton, F., & Windisch, L. (2009). The effect of product placement in
computer games on brand attitude and recall. International Journal of Advertising, 28 (3),
423-438.
Williams, K., Petrosky, A., Hernandez, E., & Page, Jr., R. (2011). Product placement
effectiveness: revisited and renewed. Journal of Management and Marketing Research,
7, 1-24.