History
Origins
Product placement began in the 19th century. By the time Jules Verne published the adventure novel '' Around the World in Eighty Days'' (1873), his fame had led transport and shipping companies to lobby to be mentioned in the story. Whether Verne was actually paid to do so remains unknown.William Butcher (translation and introduction). ''Around the World in Eighty Days'',Movies and television
Early film
A feature film that has expectations of reaching millions of viewers attracts marketers. In many cases the film producers request no payment for product exposure when consumer brands appear in movies. Film productions need props for scenes, so each movie's ''=Later films
= The James Bond film '' You Only Live Twice'' (1967) featured theEarly radio and television
Over-the-air (OTA) radio and television in the United States are not funded through end user license or subscription. In USTypes
Placements fall into two main categories: paid and unpaid. Most product placements are unpaid. In unpaid product placements, the advertiser will usually loan or give the product to the production. The productions costs are reduced, as they would otherwise have to buy or rent the items. Subcategories are ''basic'', when a logo is merely visible, and ''advanced'', whereby the product or brand is spoken by characters in the show or movie. Barter and service deals (the branded product is provided for crew use, for instance) are common. Content providers may trade product placements for help funding advertisements tied-in with a film's release, a show's new season or other event. Still another variant, known as an ''advertisement placement'', displays an advertisement for the product (rather than the product itself) which appears in the production, such as an advertisement on a billboard or a bus that appears in the show.Brand integration
Brand integration, a variant of product placement, is when "the product or company name becomes part of the show in such a way that it contributes to the narrative and creates an environment of brand awareness beyond that produced by advanced placement." While this type of advertising is common on unscripted shows such as ''Product displacement
A real brand logo may be hidden or replaced withAudio vs visual
Placements can be sound-only, visual-only or a combination of both. The Russian television show дом-2 (phonetically '' Dom-2'') (similar to '' Big Brother'') often features participants stating something along the lines of, "Oh, did you check out the new product X by company Y yet?" after which the camera zooms in on the named product, explicitly combining an audio mention with a visual image. In '' The Real World/Road Rules Challenge'' participants often make a similar comment, usually pertaining to the mobile device and carrier for a text message. An experiment from 2002 tested the relationship between auditory vs visual product placement and if the product had higher or lower connection to the plot to how well it was remembered by viewers. The results of the experiment concluded that regardless of if the product had higher or lower connection to the plot, in either circumstance an auditory product placement was more likely to be remembered by viewers than a visual product placement.Branded content
Branded content refers to works that are funded or produced by an advertiser as a vehicle for their brand. Some forms of branded content do include self-placed product placement (such as a series ofCross-promotion
Larger,Replacement
Product placements can also be added or replaced during post-production. For example, placements can be added to scenes that did not already have them when originally filmed, and placements can also be modified in future airings or prints of a film or television series.Parodies
The pilot episode of theFaux placements
Some films do not wish to depict real brands onscreen, so fake brands are created for products shown onscreen. '' X-Files'' (1993–2002) (as well as many other films and television productions) featured the fictionalReverse placement
So-called "reverse product placement" creates real products to match those seen in a fictional setting, typically as aMusic and recording industries
While radio and television stations are regulated by national governments, producers of printed or recorded works are not, leading marketers to attempt to get products mentioned in lyrics of popular songs. In 2008, The Kluger Agency was claimed to have proposed placement of ''Jeff Crouse#Notable works, Double Happiness Jeans'', a virtual sweatshop created as part of the ''Invisible Threads'' project for the 2008 Sundance Festival, in a Pussycat Dolls song for a fee. The firm was not intended to represent a commercial product. It had been invented as a collaboration between Jeff Crouse of the Anti-Advertising Agency and Stephanie Rothenberg. While the product technically existed at the time, ''Double Happiness'' was intended to be a critical piece. In January 2009, ''Migra Corridos'', a five-song EP including accordion ballad "El Mas Grande Enemigo", had received airplay on twenty-five Mexican radio stations. The tune purports to be the lament of a would-be immigrant left to die in the Arizona desert by people smuggling, coyotes (people smugglers). No disclosure was made to the radio stations that the United States Border Patrol, U.S. Border Patrol had commissioned the project with content devised by Elevación, a Hispanic advertising agency based in Washington, D.C. and New York City. In 2010, a video for Lady Gaga's "Telephone (Lady Gaga song), Telephone" was panned by critics for displaying nine brands in nine minutes (including her own line of Heartbeats headphones), many as paid product placements. Other 2010 music videos displayed the PlentyofFish website include Natasha Bedingfield's "Touch (Natasha Bedingfield song), Touch", Flo Rida and Akon's "R.O.O.T.S.#Singles, Available", Jason Derulo's "Ridin' Solo", and 3OH!3's "Double Vision (3OH!3 song), Double Vision". In 2011, Britney Spears's music video for "Hold It Against Me" advertised PlentyofFish andComics
South African football comic book ''Supa Strikas'' accepts product placement to allow for the comic's free distribution. Product placement occurs throughout the publication; on players' shirts, billboards and signage, and through the branding of locations or scenarios. ''Supa Strikas'' receives the majority of its support from Chevron Corporation, Chevron, via its Caltex and Texaco brands. In markets where Chevron lacks a presence, other brands step in, e.g., including Visa Inc., Visa in Kenya, Uganda and Tanzania. Other brands include their logos included as both billboard and background advertising, and through the branding of locations and scenarios. These companies include Metropolitan Life, Nike, Inc., Nike, Spur Steak Ranches and the South African National Roads Agency, among others. Other titles adopted the same system, including cricket comic ''Supa Tigers'' and ''Strike Zone''.Sports
Product placement has long been prevalent in sports at all levels.NFL
While now-defunct NFL Europe allowed liberal use of team uniforms by sponsors, the main National Football League (NFL) does not. For instance, the league prohibits logos of sponsors painted onto the fields, although Gillette Stadium in Foxborough, Massachusetts, has their stadium's logomark painted onto the FieldTurf field. In 2008, the league allowed sponsors on the practice jerseys of the uniforms, but not game uniforms. In 1991, the league allowed uniform suppliers to display their logos on their NFL-related products. Since 2012, Nike, Inc., Nike has been the league's official uniform supplier. Early on, two of the league's flagship teams—the Green Bay Packers and the Pittsburgh Steelers—adopted their identity from corporate sponsors. The Packers adopted the name "Packers" because they were sponsored by the Indian Packing Company. They later had "ACME PACKERS" written on their uniforms in the early 1920s after the Acme Packing Company bought Indian Packing. The Steelers adopted their current logo in 1962 as a product-placement deal with the American Iron and Steel Institute, which owned the rights to the Steelmark logo. The Steelers later were allowed to add "-ers" to the Steelmark logo the following year so that they could own a trademark on the logo. (The Steelers' J.P. Rooneys, pre-NFL predecessors also regularly sold naming rights to companies in the Pittsburgh area.) The league has placed itself. NFL Japan was a sponsor of the football-themedAuto racing
In auto racing, the concept of the factory-backed contestant, who is provided with vehicles and technical support in return for the car's manufacturer obtaining visibility for its products in competition, dates inNotable placements
Car, Automobiles, Clothing, apparel, Drink, beverages, home appliance, home goods, furniture, consumer electronics, computers, restaurants, financial institutions, travel, airlines and websites are just a few of the product categories. FedEx provided vehicles, access, and logistical support for the making of ''Automobiles
The most common product (business), products to be promoted in this way are automobiles. Frequently, all the important vehicles in a film or television series are supplied by one manufacturer. The James Bond film franchise has been well known for featuring product placements for List of James Bond vehicles, various vehicles, particularly luxury vehicle, luxury and sports cars. Aston Martin has been the most synonymous with the franchise, dating back to the appearance of the Aston Martin DB5 as Bond's vehicle in ''Goldfinger (film), Goldfinger'' (1964). ''Apparel and accessories
The James Bond series has also featured associations with various accessory and fashion brands, such as Rolex and Omega SA, Omega watches, Calvin Klein (fashion house), Calvin Klein clothing, and Samsonite luggage. Vera Wang, Carolina Herrera, Christian Lacroix, Lanvin (company), Lanvin, Dior, Oscar De La Renta, Manolo Blahnik and Vivienne Westwood were all featured in the TV series ''Sex and the City''. Under Armour, an athletic wear company, currently worth $6.67 billion, has been featured in films such as the ''Fast and the Furious'' ''The Martian (film), The Martian'', ''22 Jump Street'', and ''Fantastic Four (2015 film), Fantastic Four'' to name a few.Consumer electronics and computers
Apple Inc., Apple's products frequently appear in films, music videos and on television. Apple has stated that they do not pay for this, but declined to discuss how its products are placed; some Apple placements have stemmed from their products' ubiquity and position as a status symbol, rather than actual paid promotion. For example, Pixar films have often included references to Apple products as an homage to company co-founder Steve Jobs, who was an early investor in the studio. The 2010 ''Modern Family'' episode "Game Changer (Modern Family), Game Changer" prominently featured the iPad and aired prior to its launch, while the 2015 episode "Connection Lost" was presented entirely from the perspective of Claire Dunphy's MacBook laptop, who interacted with other characters via FaceTime video calls and iMessage, while also using other macOS, Mac OS X applications. Show creator Steven Levitan said the show had an ongoing relationship with Apple, but did not elaborate further. In the case of the former, while the episode's credits did state that the iPad was "provided" by Apple, the company did not pay the show's broadcaster American Broadcasting Company, ABC for the integration, nor buy any commercial time during the episode. Similarly, Apple did not provide any financial compensation for "Connection Lost", but did provide MacBook Pro and iPhone hardware for the filming, and a Mac Pro workstation for post-production. In video games, the most common placements are for processors or graphics cards. For example, in EA's ''Battlefield 2142'', ads for Intel Core 2 processors appear on map billboards. EA's ''The Sims'' contains in-game advertising for Intel and for McDonald's. Rare (company), Rare's ''Perfect Dark Zero'' features many ads for Samsung in their menus.Food and beverage
The use ofTobacco
Tobacco companies have made direct payment to stars for using their cigarettes in films. Sylvester Stallone received US$500,000 to use Brown and Williamson tobacco products in five feature films. In response to a ''Christian Science Monitor'' article accusing the industry of deliberately using product placement as an advertising strategy, the Tobacco Institute claimed that product placement is driven by filmmakers to "achieve desired artistic effects but also to offset production costs". It also claimed "the 1970 federal ban on cigarette advertising on television and radio does not prohibit payments to filmmakers for the use of cigarettes in a film." The rebuttal concludes with the sentiment that smoking in film provides a certain "aesthetic" which is legitimate and at the filmmaker's discretion.Airlines
Many airlines have advertised prominently in film, in some cases to promote a new flight route or just to increase public awareness of the company. Pan Am advertised in many films, including ''2001: A Space Odyssey (film), 2001: A Space Odyssey'' and James Bond (character), James Bond films. American Airlines was advertised in ''Home Alone'' and ''Home Alone 2'', and a model of a Virgin Atlantic Boeing 747 was shown in ''Radio, television and publishing
Television
The list of television shows with the most instances of product placement (November 2007 – 2008; according to Nielsen Media Research) included: * ''The Biggest Loser (U.S. TV series), The Biggest Loser'' – 6,248 * ''American Idol'' – 3,000 * ''Extreme Makeover: Home Edition'' – 3,371 * ''America's Toughest Jobs'' – 2,807 * ''One Tree Hill (TV series), One Tree Hill'' – 2,575 * ''Deal or No Deal'' – 2,292 * ''America's Next Top Model'' – 2,241 * ''Last Comic Standing'' – 1,993 * ''Kitchen Nightmares'' – 1,853 * ''Hell's Kitchen (U.S. TV series), Hell's Kitchen'' – 1,807 * ''Glenn Martin, DDS'' M&M's, Mrs. Butterworth, etc. Nielsen called a scene in an episode of CBS' ''Mike & Molly'' of Mike eating M&M's in Carl's apartment 2013's best branded and opinion-shifting product integration in a scripted show. Television shows going back to the 1970s with The Love Boat featured product placements when using the Princess Cruise Lines and shows as recent as Modern Family have featured characters trying to procure an Apple iPad.Video sharing website
YouTubers are allowed to do product placement. For instance, the ''LinusTechTips'' channel by Linus Sebastian. Notifying YouTube is required, and YouTube reserves the right to ban it.Literature
In 2001, British author Fay Weldon published ''The Bulgari Connection'', a novel commissioned by Italian jewellery company Bulgari. According to ''The Independent'', this was the first instance of a literary product-placement deal between an established writer of fiction and a commercial partner.Legal considerations
United States
Much of U.S. broadcast law pertaining to on-air product promotion dates to the payola scandals of 1950s broadcast radio. An investigation launched in November 1959 into allegations that some radio disc jockeys had accepted bribes in return for radio airplay ended with a US$2,500 fine for disc jockey Alan Freed (of WABC (AM), WABC and WINS (AM), WINS) for violating commercial bribery laws. On September 13, 1960, the U.S. government banned payola in broadcasting. Under "All matter broadcast by any radio station for which money, service, or other valuable consideration is directly or indirectly paid, or promised to or charged or accepted by, the station so broadcasting, from any person, shall, at the time the same is so broadcast, be announced as paid for or furnished, as the case may be, by such person..." with similar and related provisions reflected in Federal Communications Commission regulations as . These provisions have governed subsequent payola investigations, including a 2005 investigation into Sony BMG and other major record companies. Often, a broadcaster claimed to have complied by placing an acknowledgement in an inconspicuous place, such as embedded within the credits. In 2005 U.S. Federal Communications Commission commissioner Jonathan Adelstein stated "if broadcasters and cable TV companies insist on further commercializing new and other shows alike, that is their business. But if they do so without disclosing it to the viewing public, that is payola, and that is the FCC's business."United Kingdom
In the United Kingdom, placement by commercial broadcasters was forbidden prior to 2011. On February 28, 2011, telecommunications regulator Ofcom legalised placements in certain types of programming. A placement must be "editorially justified" and not place "undue prominence" on the product. Product placements are not allowed for products that cannot legally be advertised on television, including alcohol, baby milk, gambling products, medication or junk food. Placements are not allowed during children's, news, public affairs and religious programs. Additionally, broadcasters must disclose placements on-air by displaying a "PP" icon on-screen during the program for at least three seconds at the beginning, after every commercial break, and at the end. The first legal product placement on British television came during an episode of ''This Morning (TV programme), This Morning'', for a Nestlé-produced coffee maker. As with all other advertising, theExtreme examples
''Back to the Future Part II'' included production placement for futuristic versions of Nike, Inc., Nike footwear, Pepsi-Cola and ''USA Today''. ''Blade Runner'' included prominent placement for many brands. The logos of Atari, Bell System, Bell,Viewer response
In April 2009, fans of the television series ''Chuck (TV series), Chuck'' responded to a placement by Subway (restaurant), Subway restaurants with a grassroots effort to save the show from cancellation. The movement gained support from cast and crew, with series star Zachary Levi leading hundreds of fans to a Subway restaurant in Birmingham, United Kingdom.Criticism
Placement continues to grow, despite consumer groups such as Commercial Alert that object to the practise as "an affront to basic honesty". The group requested disclosure of all product-placement arrangements and notification before and during embedded advertisements. It justifies this to allow parents to protect easily influenced children. In 2005, the Writers Guild of America, a trade union representing authors of television scripts, objected that its members were forced to produce disguised ad copy. Some scholars argue that product placement may inherently affect the creativity and originality of movies as film producers may re-write scripts in order to incorporate products. Most typically, product placement and merchandise are most successful amongst specific genres of movies which may eventually limit the diversity of films.Research
Effectiveness
As with most marketing tactics, product placement leads to explicit as well as implicit advertising effects. Explicit effects can be observed directly and are usually visible by higher recall scores. They are highly connected to the conscious mind. Implicit effects can be observed by a change in behavior – like a higher purchase intention. They are fully based on the subconscious mind. Implicit effects are more relevant for purchase decisions and therefore more valuable than explicit reactions. According to a 2009 study of product placement in movies from 2002, product placement in movies are effective financially. The study observed the relationship of a company having a product placed in a movie and that company's stock price. After accounting for other variables, the study found that companies on average have their stock price increase by 0.89% due to product placement during the movie's opening.Recall
Recall describes whether people can name a product after seeing it within the content. Research showed that there is a significant relationship between product placement and recall.Attitude
Product placement also leads to changes in attitude towards the product or brand.Purchase intention
A lot of research has shown a higher purchase intention as a result of product placement.Subconscious effects
Product placement affects the audience on a conscious, but also subconscious level. Science showed that there does not even need to be an explicit, conscious effect to activate subconscious effects. For example, product placement can lead to an exclusion of competing brands from the consideration set of the audience – subconsciously. It is also hoped to bypass advertising defense reactions of consumers by focusing on the subconscious character of product placement.Negative effects
Under specific circumstances, product placement can lead to no or even negative effects. This usually happens if the product placement is too obvious, while the audience also feels it is being manipulated.Placement moderators
=Congruence
= The better the product placement fits the surrounding content, the better the implicit effectiveness (like attitude or purchase-intention) will be.=Audio vs visual
= After viewing a ''Seinfeld'' episode with visual, auditory and audiovisual product placements, a recall task indicated that audiovisual product placements were recalled the best, visual product placements somewhat less and audio placements least. In a recognition test audiovisual was still remembered the best but audio placements were remembered second best and visual placements were remembered third best. As indicated, the type of placement that is most effective seems to vary depending on task, but audiovisual placements seem to be often the most effective. However, audiovisual product placements are not remembered best when there is more than one audiovisual placement at once, making it hard to remember each one. In case the placement is only on the audio level, advertisers must make sure it is very prominent to have any effect at all.=Character attractiveness
= People tended to like brand names that were paired with attractive faces more than those paired with unattractive faces. The more times a brand was paired with an attractive face, the more people liked it.=Product prominence
= Product placement perceived to disrupt a movie, especially when repeated, were found in one study to be counterproductive. Moderate repetition of subtle product placements did not increase people's feelings of distraction. Products that are integrated within the plot of a movie are better recall, although not if more than one product is shown at a time. In one study placements connected to the story were recognized most often, products used by the main character were remembered less often and products in the background were remembered least often. Placements were found more effective on a larger screen compared to on a smaller one. Also, products placed in the first half of a movie tend to be remembered better than products in the second half of a movie, which demonstrates the primacy effect.=Level of Involvement
= High involvement with the program makes it easier for people to recognize the product placement. This can lead to positive effects, but might also lead to negative reactions. The same applies for high product category involvement.Audience demographics
Cultural attributes
Older research cited a difference between different cultural areas. For example, Australians, Austrians and Germans tended to evaluate product placement more critically and show less positive reactions than Americans or people from certain Asian countries such as India.Age
Children are usually more easily influenced than adults. In a 2013 study on children's (age 6-14) ability to recognize product placement in film; the following results were found. Children between ages 6 and 9 did not understand that a company had to pay for the product to be in the film or had confusion on why a company would pay to have a product appear in a film. After age 10 most children were able to identify that an external company paid for the product to appear. Children between age 6 and 9 could not identify themselves as the target audience for the product placement. After age 10 most children understood that the product placement was targeted towards them. Children between age 6 and 9 could not identify the intention of product placement. Children between age 10 and 12 still had confusion over the intention of a company placing their product in a film. Children over the age of 12 had full understanding of the marketing intentions of a company placing its product in a film.Sex
If the product is endorsed by a person, there are stronger Priming (psychology), priming effects if the audience is the same sex. Women tend to be influenced a little more easily, but show more negative reactions when the product can be described as ethically questionable (e.g. alcohol).Measurement
Tools It is very difficult to measure the effect of a product placement on viewers : access to exposed audience, recruitment, interviews, database for results comparison, independence from agencies... And more of 70 criteria must be analysed to be comprehensive. To measure the success of product placement, one first tracks the parameters of the placement itself, like the ease of identification, screen time, number of exposure(s), or association with a main character. That information is also often used to determine the price of a specific placement. Secondly, the effectiveness is measured using direct (for explicit memory effects) as well as indirect (for implicit memory effects) measurements.Measurement of the explicit memory
Explicit effects are measured by recall or recognition tests. Subjects are asked to name the products that he or she noticed (free recall). This survey can be also aided by giving additional information like a specific product category. At recognition tests, a selection of products is shown to the interviewed person, who then needs to select the ones that he has seen before.Measurement of the implicit memory
Implicit effects are measured in an indirect way by observing a change in behavior. This can be done by tracking the consideration set and buying behavior of people, measuring brain activities or using abstract indirect test settings like the word fragment or word stem completion test. The implicit association test (IAT) is also an applicable measurement tool.Ethics
Many argue that product placement is ethically questionable, because it manipulates people against their will. A contrary view is, even if product placement is only perceived unconsciously, it is still evaluated by our mind. It cannot make people act against their beliefs. Most people also appreciate the fact that movies look more realistic with real brands and do not feel disturbed by the placements. Additionally, further research argues that product placement is not any different from other marketing tactics when it comes to ethics.See also
* Subliminal advertising * ''The Greatest Movie Ever Sold''References
Further reading
* Simon J. Pervan and Brett A. S. Martin (2002External links
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