Product Placement

What is product placement?

•Product Placement is the process which integrates an advertiser's product into movies and TV shows for clear, on-screen visibility. It is part of the rapidly expanding entertainment industry reaching millions of people daily through movies, television, and video. (Source: MMI Product Placement)
•Product placement, or embedded marketing, is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, the story line of television shows, or news programs. The product placement is often not disclosed at the time that the good or service is featured.
•Product placement is an advertising technique in which companies pay a fee or provide services in exchange for a prominent display of their products. It is primarily used in connection with the movie industry, although other venues such as concert halls, convention centers and high-profile nightclubs may also agree to some form of product placement.

One infamous example of product placement occurred in Steven Spielberg's movie ET. Originally the alien creature was supposed to be lured out of hiding by following a trail of M&M chocolate candies. The company which produces M&Ms, however, did not wish to have their product associated with an unproven and potentially unmarketable movie. A rival company agreed to provide a similar candy called Reese's Pieces. The movie became a huge financial success, and the product placement boosted sales of Reese's Pieces substantially.
The use of product placement in movies has proven to be controversial. Some film makers see the practice of product placement as too commercial. Others, particularly those with severe budget restrictions, welcome any company willing to invest money in exchange for product placement. The debate often centers around the necessity for a particular brand name product in a scene. In our hypothetical chase sequence, the use of one Federal Express truck establishes the bad guy's cover. Placing a fleet of Federal Express trucks on the street, however, may be an obvious case of product placement and considered too commercially motivated.

Despite the debate between artistic integrity and practical commercialism, there is no doubt that product placement is effective in most cases. Moviegoers may not even be aware of all the examples of product placement in an average Hollywood film, but they might remember enough details to boost sales after the fact. If nothing else, the company benefits from the use of their brand name or logo in connection with an exotic locale or exciting action sequence. If James Bond shoots out a Coca-Cola display, for example, the audience will remember that sequence long after the movie ends.

Types of Product Placement
The most basic form of product placement is the inclusion of a product name or logo in the foreground or background of a scene. Payments are based on exposure, including the number of times the product is shown or mentioned, the duration of that exposure, and the degree of inclusion of the product in the story line. If the product is actively used (such as when a leading character can be clearly seen to take a drink from the bottle or can), placement fees are higher. Producers seek out companies for product placements as another revenue stream for the movie, and in exchange for advertisements tied in with a film's release, a show's new season, or other event.
The most common products to be promoted in this way are automobiles. Frequently, all the important vehicles in a movie or television serial will be supplied by one manufacturer. For example, The X-Files used Fords. Since the dawn of television automobile companies have been providing their vehicles to be used in shows.
A variant of product placement is advertisement placement. In this case an advertisement for the product (rather than the product itself) is seen in the movie or television series. Examples include a Lucky Strike cigarette advertisement on a billboard, or a truck with a milk advertisement on its trailer.
Product placement is also being used in books (particularly novels) and video games.



Categories and Variations of Product Placement
Actual product placement falls into two categories: products or locations that are obtained from manufacturers or owners to reduce the cost of production, and products deliberately placed into productions in exchange for fees.
Sometimes, product usage is negotiated rather than paid for. Some placements provide productions with below-the-line savings, with products such as props, clothes and cars being loaned for the production's use, thereby saving them purchase or rental fees. Barter systems (the director/actor/producer wants one for himself) and service deals (cellular phones provided for crew use, for instance) are also common practices. Producers may also seek out companies for product placements as another savings or revenue stream for the movie, with, for example, products used in exchange for help funding advertisements tied-in with a film's release, a show's new season or other event.
A variant of product placement is advertisement placement. In this case an advertisement for the product (rather than the product itself) is seen in the movie or television series. Examples include a Lucky Strike cigarette advertisement on a billboard or a truck with a milk advertisement on its trailer.
Another variant is the widespread use of promotional consideration in which a television game show would award an advertiser's product as a prize or consolation prize in return for a subsidy from the product's manufacturer.
Product placement companies work to integrate their client company brands with film and television productions. Jay May, president of Feature This!, a branded entertainment company, explains the process: “The studio sends us the script. We break it down. We look for our clients’ demographics and then we tell our client this movie is available with this actor, with this director, with this producer, do you want it?”


Controversy
Some believe product placement is out of control and has become all-pervasive in today's society. One group known as Commercial Alert asks for full disclosure of all product placement arrangements. They feel that most product placements are deceptive and are not fully or clearly disclosed, advocating notification of embedded advertisements before and during a television program. One justification for this is that it allows greater parental control for children, who are said to be influenced greatly by product placement.