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Product placement or embedded advertisement is a modern form of marketing in which
brands target to reach a large audience without employing overt 'traditional advertising.' Usually,
in this form of advertisement, the product is embedded in a different form of media such as film,
television, and other digital platforms. Companies are required to pay to have their products
featured in TV programs, movie shows, or even in YouTube channels of influential vloggers.One
advantage of product placement is that participating firms hope that movie viewers or TV show
viewers are likely to take note of the products displayed in the shows and hence consider using
the products themselves. However, some audiences perceive product placement advertising as
unethical and deceptive.
If product placement is associated with a good movie or TV program, it creates a greater
awareness for the specific brand. Generally, a good movie is likely to be rewatched from time to
time, and if there are product placements in it, viewers tend to develop a positive feeling towards
the featured product. In extreme cases, local brands may get international exposure to an
engaged audience if a video clip featuring their product receives global coverage. Product
placement can help skyrocket the market base of a certain product whenever its placement goes
viral.
Product placement advertising is a source of revenue for film-makers. This is sort of
marketing is a crucial part of movie and TV viewing experience and corporate brands have to
pay for product placement. Most of these shows are sponsored by product placements, and
eventually, broadcasting companies can generate revenue. In short, TV shows and filmmakers
have to make money to continue producing new content. Embedded advertisement helps lower
the expenses necessary for filming, which promotes the potential profitability of a movie.
Companies that participate in product placement have their employees' morale
increased. When products from these firms are featured in entertainment shows, their
employees are likely to have positive feelings when their products gain global recognition.
Employees get motivated when products from their companies are shared in blogs and social
media. This gradually increases the overall performance of the advertising firm.
Product placement is expensive for infant companies. Since TV shows target a large
audience, the film-makers tend to charge extremely high for product placements. Such costs
may go beyond thousands of dollars, and financially crippled companies may find it hard to
have their brands featured.
A major limitation of product placement is that competitive brands can easily cancel
each other out. At times, some movies and TV shows may involve very many product
placements from within the same industry such that the impact of the advertising gets canceled
out. If numerous brands from a similar industry are seen by viewers, then there is no loyalty
created. For instance, if Burger King's and McDonald's adverts are to be embedded in the
same movie, the effect of the advertising would not be felt.
Also, many potential clients are annoyed by product placements. This is because
product placements can be a very big distraction while watching an engaging movie, especially
when the advertising interferes with the plot of the movie. Sometimes, this is annoying because
the product is
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embedded in the film, and the viewer is always unable to escape, mute, or skip the commercial
advert. In the end, a viewer may develop a negative attitude towards the featured brand.
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