Product placement, also known asembedded marketing,[1][2][3][4] is amarketing technique where references to specific brands or products are incorporated into another work, such as a film or television program, with specific promotional intent. Much of this is done by loaning products, especially when expensive items, such as vehicles, are involved.[5] In 2021, the agreements between brand owners and films and television programs were worth more than US$20 billion.[5]
While references to brands (real or fictional) may be voluntarily incorporated into works tomaintain a feeling of realism or be a subject of commentary,[6] product placement is the deliberate incorporation of references to a brand or product in exchange for compensation. Product placements may range from unobtrusive appearances within an environment, to prominent integration and acknowledgement of the product within the work. When deliberate product placement is not announced to the viewer, it is considered a form ofcovert advertising.[7]
During the 21st century, the use of product placement on television has grown, particularly to combat the wider use ofdigital video recorders that can skip traditional commercial breaks, as well as toengage with younger demographics.[9] Digital editing technology is also being used to tailor product placement to specific demographics or markets, and in some cases, add placements to works that did not originally have embedded advertising, or update existing placements.[8]
Product placement began in the 19th century. By the timeJules Verne published the adventure novelAround 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.[10] Similarly, a painting by Édouard Manet (1881–1882) shows a bar at theFolies Bergère with distinctive bottles placed at either end of the counter. The beer bottle is immediately recognisable as Bass beer. Manet's motivations for including branded products in his painting are unknown; it may be that it simply added to the work's authenticity, but on the other hand the artist may have received some payment in return for its inclusion.[11]
Research reported by Jean-Marc Lehu (2007) suggests that films produced byAuguste and Louis Lumière in 1896 were made at the request of a representative ofLever Brothers in France. The films featureSunlight soap, which may be the first recorded instance of paid product placement in film.[12] This led to cinema becoming one of the earliest channels used for product placement.
Self-advertising: A German countess holds a copy of the magazineDie Woche in her hands. The photo appeared in 1902 in an issue of the magazine. (Detail of the actual photograph).
With the arrival of photo-rich periodicals in the late 19th century, publishers found ways of lifting their paper's reputation by placing an issue of the magazine in photographs of prominent people. For example, the German magazineDie Woche in 1902 printed an article about a countess in her castle where she, in one of the photographs, holds a copy of the magazine in her hands.[13]
Product placement was a common feature of many of the earliestactualities and cinematic attractions from the first ten years of cinema history.[14]
During the next four decades, the motion picture trade journalHarrison's Reports frequently cited cases of on-screen brand-name placement.[15]Harrison condemned the practice as harmful to movie theatres, and his editorials reflected his hostility towards product placement in films.Harrison's Reports published its first denunciation of that practice over Red Crown gasoline's appearance inThe Garage (1920).[16] Another editorial criticised the collaboration between theCorona Typewriter company andFirst National Pictures when a Corona typewriter appeared in several films in the mid-1920s includingThe Lost World (1925).[17]
Recognisable brand names appeared in movies from cinema's earliest history. Before films had narrative form in the current sense, industrial concerns financed the making of what film scholar Tom Gunning described as "cinematic attractions",[18] short films of one or two minutes. In the first decade or so of film (1895–1907) audiences attended films as "fairground attractions" interesting for their then-amazing visual effects. This format was better suited to product placement than narrative cinema. Leon Gurevitch argued that early cinematic attractions have more in common with television advertisements in the 1950s than they do with traditional films.[19] Gurevitch suggested that as a result, the relationship between cinema and advertising is intertwined, suggesting that cinema was in part the result of advertising and the economic benefits that it provided early filmmakers.[20] Segrave detailed the industries that were advertised in these early films.[21]
A feature film that has expectations of reaching millions of viewers attracts marketers.[22] In many cases the film producers request no payment for product exposure when consumer brands appear in movies.[citation needed] Film productions need props for scenes, so each movie'sproperty master, who is responsible for gathering props for the film, contacts advertising agencies or product companies directly. In addition to items for on-screen use, the product or service supplier might provide a production with complimentary products or services. Tapping product placement channels can be particularly valuable for movies when a vintage product is required—such as a sign or bottle—that is not readily available.
Although there is no definitive proof that product placement for Red Crown gasoline inThe Garage,Fritz Lang'sDr. Mabuse the Gambler (1922) contained a prominent title card in the opening credits reading "The gowns of the female stars were designed by Vally Reinecke and made in the fashion studios of Flatow-Schädler und Mossner." Amongsilent films to feature product placement wasWings (1927), the first to win theAcademy Award for Best Picture. It contained a plug forHershey's chocolate. Fritz Lang's filmWoman in the Moon (1929) shows someone drinking prominently from a glass for Odol, a popular German brand of mouthwash, and his filmM (1931) shows a banner display forWrigley's PK Chewing Gum, for approximately 20–30 seconds.
Another early example occurs inHorse Feathers (1932), whereThelma Todd's character falls out of a canoe and into a river. She calls for a "life saver" andGroucho Marx tosses her aLife Savers candy.It's a Wonderful Life (1946) depicts a young boy with aspirations to be an explorer, displaying a prominent copy ofNational Geographic magazine. InLove Happy (1949),Harpo cavorts on a rooftop among various billboards and at one point escapes from the villains on the oldMobil logo, the "Flying Red Horse".Harrison's Reports severely criticised this scene in its film review[23] and in a front-page editorial. InGun Crazy (1949), the climactic crime is the payroll robbery of theArmour meat-packing plant, where aBulova clock is prominently displayed.In the 1958 British WWII movieIce Cold in Alex, the long sought after ice cold beer in question turns out to be (clearly) aCarlsberg.
In the 1993 filmDemolition Man, the fast food chainTaco Bell is integrated directly into the film's lore, depicting it as the only remaining restaurant franchise in existence by 2032.[26] Since Taco Bell was not well known outside of the U.S., for the international release of the film it was replaced withPizza Hut, another restaurant chain owned byYum! Brands. Lines were re-dubbed and logos changed during post-production.[27]
In the filmCast Away, Tom Hanks, the lead character, is aFedEx employee. A volleyball fromWilson Sporting Goods is also prominently featured in the film.[28] References to the delivery company FedEx are made throughout the film, and the company is central to the plot.The Internship (2013), which features two unemployedslacker friends seeking employment atGoogle, was described byTom Brook of theBBC as "one huge advertisement for Google" that took "product placement to a startling new extreme".[29]Rolling Stone magazine included it on a list of the 10 Egregious Product Placements in film.[28]
The conspicuous display ofStudebaker motor vehicles in the television seriesMister Ed (1961–1966), which was sponsored by the Studebaker Corporation from 1961 to 1963, as well as the display ofFord vehicles on the seriesHazel (1961–1966), which was sponsored by the Ford Motor Company from 1961 to 1965, are other examples of television product placement.
The UK commercial television networkITV broadcastadmags—entertainment programs with product placement—such asJim's Inn until Parliament banned them in 1963.[30]
Placements fall into two main categories: paid and unpaid. Most product placements are unpaid.[5] 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.[5]
Subcategories arebasic, when a logo is merely visible, andadvanced, 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.[5] 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.[31] Still another variant, known as anadvertisement placement, displays anadvertisement for the product (rather than the product itself) which appears in the production, such as an advertisement on abillboard or a bus that appears in the show.
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."[31] While this type of advertising is common on unscripted shows such asThe Apprentice, it can also be used inscripted television.[31] An early example was byAbercrombie & Fitch, when one of its stores provided the notional venue for part of the romantic comedy filmMan's Favorite Sport? (1964). OnAll My Children one character took a job atRevlon.[31] The character's job became part of the character's development.[32]
Jurassic Park not only prominently featuresFord cars and other commercial products, but also includes a scene displaying its own promotional merchandise. One shot shows the "Jurassic Park Souvenir Store", with products that it offered for sale to fans.
Aspen beer, a fictional brand from the 1979 filmAlien
A real brand logo may be hidden or replaced withfictional brand names in a production, either to imitate, satirize or differentiate the product from a real corporate brand.[33] Such a device may be required where real corporations are unwilling to license their brand names for use in the fictional work, particularly where the work holds the product in a negative light.[34]
According toDanny Boyle, director of the filmSlumdog Millionaire (2008), the makers used "product displacement" to accommodate sponsors such asMercedes-Benz that refused to allow their products to be used in non-flattering settings. While Mercedes did not mind having a gangster driving their cars, they objected to their products being shown in aslum. The makers removedlogos digitally in post-production, costing "tens of thousands of pounds". When such issues are brought up in advance of filming, production companies often resort to "greeking", the practice of simply covering logos with tape, but one of them driven by Latika is shown to have the logos on the car keys.
Similarly, inThe Blues Brothers (1980), portions of the defunctDixie Square Mall inHarvey, Illinois, were reconstructed in façade and used as the scene of an indoor car chase. Signage belonging to mall tenants was replaced with that of other vendors; for instance, aWalgreens would become aToys "R" Us.[35]
Cars (2006) parodiesNASCAR, an advertising-heavy sport which controversially had long allowedalcohol andtobacco sponsorships. NASCAR's sponsors were replaced withfictional or parody brands;Dinoco Oil takes pride of place, followed by a string of invented automotive aftermarket products marketed in a similar means topharmaceutical products."Dale Earnhardt Inc." displaced "Junior #8"'s sponsorBudweiser to avoid advertisingbeer in aDisney & Pixar feature. The racing series portrayed in the film is also known as the "Piston Cup", as a pun on theNASCAR Cup Series' past sponsor ofWinston cigarettes (during which time it was known as the "Winston Cup Series"; it has since been succeeded by phone carrierSprint and energy drinkMonster Energy).[36][37]
Placements can be sound-only, visual-only or a combination of both. The Russian television show дом-2 (phoneticallyDom-2) (similar toBig 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. InThe 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.[38]
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 ofmade-for-TV movies produced byWalmart andProcter & Gamble, which featured placements for P&G products and Walmartstore brands),[39][40][41] but some (such as, most prominently, the media operations ofenergy drink brandRed Bull) are focused more upon producing content that appeal to their product's demographics and image, rather than being a promotion for their products first and foremost.[42][43][44]
Product placements can also be added or replaced during post-production.[50][51][52] 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.[53][51][52]
The 1988 filmReturn of the Killer Tomatoes mocked the concept when at one point the film stops for lack of money. The character played byGeorge Clooney suggests product placement as a way to continue. This was followed by several scenes with blatant product placement, including aPepsi billboard installed in front of the villain's mansion.
The 1994 filmThe Making of '...And God Spoke' is a mockumentary about the filming of a biblical epic. When running low on funds to complete the film within a film, the desperate producers resort to product placement, resulting in the absurdanachronism ofMoses descending fromMount Sinai carrying theTen Commandments and a six-pack of Coca-Cola.[57][58]
The filmFight Club, directed byDavid Fincher, bit the hand that fed it by depicting acts of violence against most of the products that paid to be placed in the film.[59] Examples include the scene where theApple Store is broken into, the scene whereBrad Pitt andEdward Norton smash the headlights of anew Volkswagen Beetle, and try to blow up a "popular coffee franchise", a thinly veiled dig atStarbucks.
Wayne's World featured a scene where Wayne refuses to allow his show's sponsor to appear on the air. When told it is part of his contract, Wayne argues that the deal "didn't include selling out" while conspicuously drinking a can ofPepsi, eatingDoritos, and displaying aPizza Hut pizza. Garth then laments that "people only do things because they get paid" while his entire wardrobe consists ofReebok athletic wear. Finally, Wayne complains of a headache and Garth advises him to takeNuprin while cutting to a few seconds of a Nuprin TV ad.[28][62]
Kung Pow! Enter the Fist spoofed its product placements, highlighting the anachronistic inclusion of aTaco Bell. In a similar vein, inLooney Tunes: Back In Action, the main characters stumble across a Wal-Mart while stranded in the middle ofDeath Valley and acquire supplies just for providing an endorsement.Kannagi: Crazy Shrine Maidens poked fun at its sponsor Sony by having one character give another aBlu-ray Disc with the tagline "It's a Sony", only for them to complain that they do not have aBlu-ray player, to which the character responds with a version inBetamax.
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 fictionalMorley brand of cigarettes, the choice of theCigarette Smoking Man.[63] The company producing Morleys was also involved in a cover-up conspiracy,Brand X.
Ghostbusters had a faux product in the climax of the film when the team faces theStay Puft Marshmallow Man. Previously in the film, Stay-Puft brand marshmallows[64] are shown in Dana's apartment and a Stay-Puft billboard is visible (via amatte painting) when the Ghostbusters' storage grid is deactivated and the imprisoned ghosts are released. Similar in form,Mel Brooks used the same device in the comedy spoofSpaceballs, which parodiedStar Wars: in one scene, he opened up a can of Perri-Air canned air, a play on the name Perrier, the brand of bottled water.[65]
The Truman Show used fake placements to advance the narrative of the reality television set. Truman's wife places products in front of hidden cameras, even naming them in dialogue with her husband. This increases Truman's suspicions as he comes to realize his surroundings are intentionally fabricated.[66]
This practice is also fairly common in certaincomics, such asSvetlana Chmakova'sDramacon, which makes several product-placement-esque usages of "Pawky", (a modification of the name of the Japanese snack "Pocky", popular amonganime andmanga fans) orNaoko Takeuchi'sSailor Moon, which includes numerous references to the seriesCodename: Sailor V, from whichSailor Moon was spun off.
This practice is also common in certain "reality-based" video games such as theGrand Theft Auto series, which feature fictitious stores such as Ammu-Nation,[68] Vinyl Countdown, Gash (spoofingGap) Zip, Pizza Boy, etc.
In 1949,Crazy Eddie was created as a fictional car dealer in the filmA Letter to Three Wives.[71] That name, bestowed in 1971 upon a real-life electronics chain inNew York City, appeared in 1984 in an ad inSplash. Crazy Eddie's memorable ads are parodied inHoward the Duck, featuring a duck version of the famous pitchman, andUHF, as "Crazy Ernie", a used car salesman, threatens to club a baby seal if nobody comes in to buy a car.
In 2007, as a promotional tie-in forThe Simpsons Movie,7-Eleven temporarily turned twelve of its locations intoKwik-E-Marts—a fictional chain of convenience stores within the universe ofThe Simpsons. The stores soldreal-world versions of food and drink brands seen in the franchise, including Buzz Cola,Duff Beer and Krusty-O's.[72]
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[73] to have proposed placement ofDouble Happiness Jeans,[74] a virtualsweatshop created as part of theInvisible Threads project for the 2008Sundance Festival, in aPussycat Dolls song for a fee.[75] The firm was not intended to represent a commercial product. It had been invented as a collaboration betweenJeff Crouse of the Anti-Advertising Agency andStephanie Rothenberg. While the product technically existed at the time,Double Happiness was intended to be a critical piece.[76]
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 theArizona desert bycoyotes (people smugglers).[77] No disclosure was made to the radio stations that theU.S. Border Patrol had commissioned the project with content devised by Elevación, a Hispanicadvertising agency based in Washington, D.C., and New York City.[78]
Rap andhip hop are notorious for the high level of product placement in lyrics and music videos; as rappers flaunt luxury brands to show off their wealthy lifestyle, companies pay to have their products named in tracks.[87] This integration began in 1986 withRun-DMC's "My Adidas."Hennessy andAlizé are notable as alcoholic drinks which became popular after being promoted in rap.[88][89]
South African football comic bookSupa 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 fromChevron, via itsCaltex andTexaco brands.
While now-defunctNFL Europe allowed liberal use of team uniforms by sponsors, the mainNational Football League (NFL) does not. In the United States, the league prohibits logos of sponsors painted onto the fields, althoughGillette Stadium inFoxborough, Massachusetts, has their stadium's logomark painted onto theFieldTurf 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 has been the league's official uniform supplier.[91]
Early on, two of the league's flagship teams—theGreen Bay Packers and thePittsburgh Steelers—adopted their identity from corporate sponsors. The Packers adopted the name "Packers" because they were sponsored by theIndian Packing Company. They later had "ACME PACKERS" written on their uniforms in the early 1920s after the Acme Packing Company bought Indian Packing.[92] The Steelers adopted their current logo in 1962 as a product-placement deal with theAmerican Iron and Steel Institute, which owned the rights to theSteelmark logo. The Steelers later were allowed to add "-ers" to the Steelmark logo the following year so that they could own atrademark on the logo.[93] (The Steelers'pre-NFL predecessors also regularly sold naming rights to companies in the Pittsburgh area.)
In auto racing, the concept of thefactory-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 inNASCAR to the 1950s andMarshall Teague's factory-backedFabulous Hudson Hornet. "Win on Sunday, sell on Monday" was once a commonadage among automakers.[95]
InFormula One, a number of major racing teams were once sponsored by tobacco companies, includingMarlboro (which has had tenures withFerrari and theMcLaren team). Due to tightening regulations ontobacco advertising worldwide, many of these sponsorships have either been dropped, or downplayed and replaced with subliminal versions on vehicle livery when races are held in regions with heavy restrictions or outright bans on the marketing of cigarettes (such as theEuropean Union).[96][97] In the present day, similar issues are faced byStake, anonline casino that sponsors theSauber Motorsport team;Kick—avideo game livestreaming platform backed by Stake's co-founders[98]—serves as a team co-sponsor, and an alternate Kick-themed livery is primarily used for races in regions where Stake cannot be advertised.[99][100]
FedEx provided vehicles, access, and logistical support for the making ofCast Away. The movie depicted real FedEx locations, and the company's then CEOFrederick W. Smith appears in one scene.[101]
The most commonproducts to be promoted in this way are automobiles. Frequently, all the important vehicles in a film or television series are supplied by one manufacturer.
Cars (2006) portrays a mix of real and fictional vehicles as characters. None are directly paid product placements, but many arefactory-backed by manufacturers who provided technical assistance and vehicles during production.[104] The Lexus LC 500[105] was featured in the 2018 filmBlack Panther.[106] TheAudi R8 was featured in theIron Man film series,[107] while the Acura NSX Roadster was featured inThe Avengers.[107]
The James Bond series has also featured associations with various accessory and fashion brands, such asRolex andOmega watches,Calvin Klein clothing, andSamsonite luggage.[108][102]
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 astatus symbol, rather than actual paid promotion.[113] For example,Pixar films have often included references to Apple products as an homage to company co-founderSteve Jobs, who was an early investor in the studio.[114] Apple products are also prominently displayed in shows produced for their streaming serviceApple TV+.The Wall Street Journal reported that, in a sample of 74 Apple TV+ episodes, over 700 instances of Apple product placement were shown, either on set or actively being used by characters.[115]
The 2010Modern Family episode "Game Changer" prominently featured theiPad and aired prior to its launch, while the 2015 episode "Connection Lost" was presented entirely from the perspective of aMacBook owned by main characterClaire Dunphy, who interacted with other characters viaFaceTime video calls andiMessage, and used othermacOS applications. Show creatorSteven 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 broadcasterABC for the integration, nor buy any commercial time during the episode. Similarly, Apple did not provide any financial compensation for "Connection Lost", but did provideMacBook Pro andiPhone hardware for the filming, and aMac Pro workstation for post-production.[116][117]
The use ofReese's Pieces as a prominent plot element in the filmE.T. the Extra-Terrestrial was the result of a sponsorship deal; it was originally intended for the titular character's favorite food to beM&M's candies, butMars Incorporated turned down an offer, believing the film's alien would scare children. TheHershey Company took the sponsorship instead, which included the rights for the company to cross-promote Reese's Pieces with the film. The deal was considered a major coup for the company; sales of Reese's Pieces tripled, and some retailers had trouble meeting demand for the product.[25][24]
Alongsidecriticism for trying to ride off the popularity ofE.T., the filmMac and Me was widely criticized for containing numerous placements for Coca-Cola soft drinks and the fast food chain McDonald's; both brands are integral to the film's plot, while McDonald's mascotRonald McDonald makes an appearance during a dance scene set at a McDonald's, and is credited as appearing in the film "as himself". Critics also noted that the name of the alien creature featured in the film, "Mac", could also be interpreted as a reference to the chain's notable burger, theBig Mac.[119][120][121] Its producer R.J. Louis denied that the film was funded by McDonald's; he had previously worked on campaigns for the company and wanted to make a film that would help benefit theRonald McDonald House Charities, and had to pursue rights to portray the McDonald's brand in the film (noting that he was "still the only person in the universe that ever had the exclusive motion picture rights to the McDonald's trademark, their actors, their characters, and the whole company"), but did receive funding from one of the chain's major suppliers,Golden State Foods. He also justified the extended dance scene, as trips to McDonald's were often seen as a "treat" for children of the era, and explained that "Mac" was meant to be an acronym for "Mysterious Alien Creature".[122]
The James Bond series has also prominently featured placements forliquor, tied to the character's recurringaffinity for martinis (particularly,vespers), althoughSkyfall deviated from this tradition by entering into a promotional deal with Dutch breweryHeineken (which also allowed the company to feature Bond actorDaniel Craig in an accompanying ad campaign).[108][102]
Tobacco companies have made direct payment to stars for using theircigarettes in films. Sylvester Stallone received US$500,000 to useBrown and Williamson tobacco products in five feature films.[123][124][125]
In response to aChristian Science Monitor article[126] accusing the industry of deliberately using product placement as an advertising strategy, theTobacco 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.[127]
In 2001, British authorFay Weldon publishedThe Bulgari Connection, a novel commissioned by Italian jewellery companyBulgari. According toThe Independent, this was the first instance of a literary product-placement deal between an established writer of fiction and a commercial partner.[132]
Much of U.S.broadcast law pertaining to on-air product promotion dates to thepayola scandals of 1950s broadcast radio. An investigation launched in November 1959 into allegations that some radio disc jockeys had acceptedbribes in return for radio airplay[133] ended with a US$2,500 fine for disc jockeyAlan Freed (ofWABC andWINS) for violatingcommercial bribery laws. On September 13, 1960, the U.S. government banned payola in broadcasting. Under47 U.S.C.§ 317 "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 inFederal Communications Commission regulations as47 CFR73.1212.[134]
These provisions have governed subsequent payola investigations, including a 2005 investigation intoSony BMG and other major record companies.[135]
Often, a broadcaster claimed to have complied by placing an acknowledgement in an inconspicuous place, such as embedded within the credits.[136] In 2005U.S. Federal Communications Commission commissioner Jonathan Adelstein stated "if broadcasters andcable 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."[137]
The 'PP' icon, introduced byOfcom to identify programs on television which contain product placement
In theUnited Kingdom, placement by commercial broadcasters was forbidden prior to 2011. On February 28, 2011, telecommunications regulatorOfcom 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, medication, orjunk food. Placements are not allowed during children's, news, public affairs and religious programmes. Additionally, broadcasters must disclose placements on-air by displaying a "PP" icon for at least three seconds at the beginning of the programme, after each commercial break, and at the end of the programme. The first legal product placement on British television came during an episode ofThis Morning, for aNestlé-producedcoffee maker. As with all other forms of commercial advertising, theBBC is barred from furnishing product placements in its programming.[138][139] One notable example was the 1970 song "Lola" byThe Kinks, which originally referred to "Coca-Cola" but was quickly changed to the generic "cherry cola" in order to be played on BBC radio.[140][141]
I, Robot offers placements forConverse,Ovaltine, Audi, FedEx,Dos Equis andJVC among others, all of them introduced within the film's first ten minutes. One moment includes a straightforward advertisement whereWill Smith's character responds to a compliment about his shoes, to which he replies "Converse All-Stars, vintage 2004"[143] (the year of the film's release). Audi created a special car for the film, theAudi RSQ. Surveys conducted in the US showed that the placements boosted the brand's image.[144] The Audi RSQ appears for nine minutes, and other Audis also appear in the film.[145]I, Robot was ranked "the worst film for product placement" on a British site.[146]
In December 2003, a series of commercials were commissioned for Cristalbeer, which were broadcast at the beginning of each advertising break during the broadcast ofStar Wars onCanal 13, such that the spots appeared to be continuations of the preceding scenes. The campaign, titledThe Force is with Cristal Beer, won awards at various international events, including atCannes Lions.[147][148]
The Island features at least 35 individual products or brands, including cars,bottled water, shoes, credit cards, beer, ice cream, and aweb search engine.[149][150] In the movie's DVD Commentary track, directorMichael Bay claims he added the advertisements for greater realism.[151]
Josie and the Pussycats contains placements in most of the shots. This appears to be done ironically, as the plot of the film revolves aroundsubliminal messages in advertising. The film's general message can also be construed as an anti-consumerist one. The film neither sought nor received compensation for the placements.[citation needed]
The 2009Star Trek, in a scene where young James Kirk drives and crashes aChevrolet Corvette, he operates aNokia touch-screen smartphone. Before running the car off the cliff while being chased by a hovering motorcycle cop, the distinctNokia trademark ring tone can be heard. The Finnish phone maker offeredStar Trek apps for its phones. The use of contemporary products was ridiculed, as the scene is set in the year 2255.[152]
The 2013 Filipino filmMy Little Bossings attracted criticism for its extensive use of product placement. Reviewers panned the film for being "one long commercial", where advertisements for brands endorsed by the characters' actors are frequently interspersed into the film.[158][159] Zig Marasigan ofRappler described the film's use of product endorsements as "some of the most distasteful examples of local product placement while no effort is made to weave them into the narrative."[160]
In a similar vein to early radio and television programs, sponsored programs in the Philippines are not uncommon, where children's programs likeTropang Potchi andJollitown were produced on behalf of companies, prominently featuring products and related properties in the shows in question.[citation needed] Notably, the final episode ofMaria Clara at Ibarra features product placement from locally produced seasoning productMagic Sarap for humorous,anachronistic reasons.
In April 2009, fans of the television seriesChuck responded to a placement bySubway restaurants with agrassroots effort to save the show from cancellation.[161] The movement gained support from cast and crew, with series starZachary Levi leading hundreds of fans to a Subway restaurant inBirmingham,United Kingdom.[162]
Placement continues to grow, despite consumer groups such asCommercial Alert that object to the practice 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.[163]
In 2005, theWriters Guild of America, a trade union representing authors of television scripts, objected that its members were forced to produce disguised ad copy.[164]
Some 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.[165] Most typically, product placement and merchandise are most successful amongst specific genres of movies which may eventually limit the diversity of films.[165]
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.[166][167] They are highly connected to theconscious mind.[168] Implicit effects can be observed by a change in behavior – like a higher purchase intention.[166][169][170] They are fully based on thesubconscious mind.[166][171] Implicit effects are more relevant for purchase decisions and therefore more valuable than explicit reactions.[166][171]
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.[172]
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.[173][174][175][176]
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.[182][186][187][188] For example, product placement can lead to an exclusion of competing brands from theconsideration set of the audience – subconsciously.[166][189] It is also hoped to bypass advertising defense reactions of consumers by focusing on the subconscious character of product placement.[167]
Under specific circumstances, product placement can lead to no[190][38][191] or even negative effects.[177][38][192][193] This usually happens if the product placement is too obvious, while the audience also feels it is being manipulated.[167][38][193]
The better the product placement fits the surrounding content, the better the implicit effectiveness (like attitude or purchase-intention) will be.[180][194][195][196]
After viewing aSeinfeld 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.[182] 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.[197] 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.[173] In case the placement is only on the audio level, advertisers must make sure it is very prominent to have any effect at all.[174][38][198]
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.[199]
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.[200]
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.[173] 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.[185]
Placements were found more effective on a larger screen compared to on a smaller one.[173] 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.[173]
High involvement with the program makes it easier for people to recognize the product placement.[201][202] This can lead to positive effects,[203][204] but might also lead to negative reactions.[205] The same applies for high product category involvement.[206]
Older research cited a difference between different cultural areas. For example, Australians,[207] Austrians[208] and Germans[209][210] tended to evaluate product placement more critically and show less positive reactions than Americans or people from certain Asian countries such as India.[211][212][213]
Children are usually more easily influenced than adults.[214][215][216] 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.[217]
If the product is endorsed by a person, there are strongerpriming effects if the audience is the same gender.[218] Women can be influenced more easily,[219][220] but show more negative reactions when the product can be described as ethically questionable (e.g. alcohol).[221]
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.[222]
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 (forexplicit memory effects) as well as indirect (forimplicit memory effects) measurements.
Explicit effects are measured by recall or recognition tests. Subjects are asked to name the products that he or she noticed (free recall).[166][223] This survey can be also aided by giving additional information like a specific product category.[190] 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.[191][197]
Implicit effects are measured in an indirect way by observing a change in behavior.[166][224] This can be done by tracking the consideration set and buying behavior of people,[166][169][170] measuring brain activities[225] or using abstract indirect test settings like the word fragment or word stem completion test.[226] Theimplicit association test (IAT) is also an applicable measurement tool.[227][228]
Marketers engaging in product placement often employ some form of valuation research to determine the success of a product placement. This involves combining the audience for a placement with traditional linear 30-second spot marketing rates in the market, and using this to create a gross advertising value for the placement. Researchers then assess the quality of the placement itself to determine how much of the gross advertising value the placement captured. The resulting value is known as a Net Placement Value (NPV). International market research firm YouGov has led on developing bespoke modelling[229] and audience solutions to automate the process of creating Net Placement Values for product placements, known as the YouGov Placement Quality Score (PQS).[230]
Many argue that product placement is ethically questionable, because it manipulates people against their will.[184][231][232][233] A contrary view is, even if product placement is only perceived unconsciously, it is still evaluated by our mind.[234][235] 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.[236][237] Additionally, further research argues that product placement is not any different from other marketing tactics when it comes to ethics.[192]
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