Product placement and the Tivo dilemma

Product Placement and the SPACDilemma

By: Samantha Triplett

What is Product Placement?

• Product placement is the subtle placing of products that exposes them to the view without the view seeing it as an ad

• It can be found in movies, television, and even real life

Origins

• Product Placement was originally intended to make scenes more realistic– The first modern form of Product Placement is said to

have been Reese’s Pieces in E.T.• It’s estimated that 90% of movie and almost all

television product placements are free• Studios profit from free props• Companies receive free or cheaper advertising

Successful, Recognizable Placements

Subliminal Exposure

• Obvious commercials are no longer as effective

• Companies becoming creative in how they reach the public

• Some product placements get as much air time as a minor character – Like Vitamin Water in an episode of

Gossip Girl

Studies of Product Placement

• Product Placement improves the profits of the product– After the 1997 release of Men In Black, Ray-Ban

Predator 2 Sunglasses tripled their profits– After placing Gatorade into EA sports video games

showed an increase of 24% of household money being spent on Gatorade

– After Reese’s Pieces appeared on E.T. its sales increased by 65%

How to Spot Product Placement

• Is it obvious?• Do you recognize it?• Is it visible?

Percy Jackson:IPhone

When in Rome:IPod

Jesse Stone:Rolex

Product Placement in Movie Trailers

• This Youtube video for Transformers shows (and points out) several instances of product placement that appear in the movies.

What Can DVR Do?

• Record television shows

• DVR gives the viewer control of what they watch

– Which means we can fast forward through

commercials

• This forces commercials to either become more

attention grabbing or find new exposure

opportunities

Expanding the Scope of Commercials

• Product Placement in video games is on the rise even with products like bananas

• Product Placement in books, mostly for children

• Product Placement in reality is common, with people becoming human billboards, and actors secretly promoting products

The Future of Commercials

• More product placement means that movies and television shows will become commercials with a plot

• More places of exposure (video games, books, real life)

• As DVR becomes more prevalent companies will lose more money

Additional Sites for More Information

• http://images.businessweek.com/ss/09/04/0423_tv_product_placements/index.htm

• http://www.productplacement.biz

• http://www.commercialalert.org

• http://www.brandchannel.com

Sources• http://www.businessweek.com/1998/25/b3583062

.htm• http://www.msnbc.msn.com/id/13960083/• http://www.marketingpower.com/Community/ARC

/Pages/Teaching/Materials/ProductPlacement.aspx• http://www.productplacement.biz/201009152825/

product-placement-research/in-game-advertising-in-ea-games-lifts-brand-sales.html

• http://www.media-awareness.ca/english/resources/educational/teachable_moments/word_from_our_sponsor.cfm

• http://money.cnn.com/2003/09/24/pf/all_ads_everywhere/

• http://www.commercialalert.org/issues/culture/product-placement

• http://www.brandchannel.com/brandcameo_films.asp

• http://www.commercialalert.org/issues/culture/product-placement/advertising-in-movies-expected-to-double-says-study-exposing-consumer-response