History
Origins
Product placement began in the 19th century. By the timeMovies 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 anBrand 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 ''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
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,Comics
Sports
Product placement has long been prevalent in sports at all levels.NFL
While now-defunctAuto racing
In auto racing, the concept of theNotable placements
Automobiles
The most commonApparel and accessories
The James Bond series has also featured associations with various accessory and fashion brands, such asConsumer electronics and computers
Food and beverage
The use ofTobacco
Tobacco companies have made direct payment to stars for using theirAirlines
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.Radio, television and publishing
Television
The list of television shows with the most instances of product placement (November 2007 – 2008; according toVideo sharing website
YouTubers are allowed to do product placement. For instance, the ''LinusTechTips'' channel by Linus Sebastian. NotifyingLiterature
In 2001, British authorLegal considerations
United States
Much of U.S.United Kingdom
In theExtreme examples
''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,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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