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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.