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Marketing: Product Placement

Marketing: Product Placement

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Marketing: Product Placement

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  1. Marketing: Product Placement BMI3C

  2. Trends in Media • Newspapers/Magazines • Growing more or less popular? • Impact of Internet video and PVRs on TV commercials?

  3. Trends in Marketing • Embed marketing in the media • Less “obvious” than traditional ads • Harder to ignore • Examples: • video

  4. How is it done? • Some marketing agencies specialize in product placement • When a movie or TV show is being made, producers and marketing agency will go over the script and look for opportunities to insert product placement • Sometimes the script changes to accommodate a particular brand/product

  5. Impact of Product Placement • Source of financing for movies/TV • Get millions in payments from companies to help pay for the making of the film • Can reduce number of commercials • Ex: Fox’s 24 aired a one-hour commercial free episode (though the whole episode was essentially an ad… Ford is the primary sponsor and their contract gives them creative control over the script)

  6. Impact of Product Placement • For marketers, may be more effective than traditional advertisement • Audience can’t “fast forward” or ignore it • Usually subtle…. more subconscious than overt advertisement

  7. Does it actually work? • Examples: • Red Stripe beer was featured prominently in the movie The Firm • Saw sales increase over 50% in the month following the film’s release • Reese’s Pieces featured prominently in the movie E.T. • Hershey reported a 65% increase in sales following the film’s release

  8. The Kings of Product Placement • Apple • Appeared in 30% of the Number 1 films of 2010 • Iron Man 2 • 64 Product Placements • About 1 every 2 minutes

  9. Other media? • Product placement in music? • Nelly “Air Force Ones” • Busta Rhymes “Pass the Courvoisier” • Product placement in video games • See article

  10. Product Placement on Rise in Video Games • What Marketing Activities are referenced there? • How might a video game company perform the ones not mentioned?