Product Placements in Television and Film

By

Erica Sanders

Introduction: 

While watching television, do you often mute your television or zap the commercials during commercial breaks to avoid advertisements? If you are one of the millions of viewers who purposely avoid advertisements, companies are catching on to you. Could it be possible that you are being influenced by advertisements that are so carefully integrated into television shows and movies that you are unaware that their presence is a form of advertising?  Product placement is a form of advertising in which marketers pay to have a product shown in the media. Rather than advertising a product in a commercial, companies have their products incorporated into television programs and films. Companies hope that by placing their product within a program or film, they will effectively increase the overall awareness of their product with the audience targeted by the filmmakers and television producers (Paul 3).  Since television is oversaturated with a wide array of advertising tactics that are clearly noticeable to viewers, some marketers believe that product placement advertisements can be extremely effective if the product message is not perceived as a persuasive one (Russell 307). There are three main types of product placements that are used today which are called Tripartite Typology or a three dimensional construct. The theory includes visual placement, auditory placement, and plot connection. (Russell 307).

Explanation of the Topic

Visual Placement: This occurs when a product, service, or logo can be simply observed within the setting of a television show or film. For example, during a television program you may notice that a can of Pringles is sitting on a kitchen table. The effect that the placement has on consumer’s brand attitudes cannot be measured to this day but research has shown that the number of appearances on the screen may increase recognition. (Fitzgerald 1). However, some marketers follow the “screen placement tactic” because they believe that it will increase brand awareness and enhance brand image. Most marketers believe that showing a product repeatedly during a highly rated program will increase consumer recognition of the product (Russell 307). This tactic can be a dangerous one because overexposure to a product during a program or film can lead to the suspicion of whether or not the product is being shown for advertising reasons. Products that are visually presented and not discussed are not as effective because the visual channel is often used to display products without discussing them (Russell 307). Sometimes the items are used as part of the background scenery and tend to go unnoticed by viewers because they are listening rather than observing the set.

Auditory Placement: This occurs when a character verbally refers to a product or service that is scripted within the program. The effect of an auditory placement depends on three factors (Russell 307):

 Auditory information has a greater effect than visual placement on viewers because they can process the information even when they are not looking at the television or movie screen. People tend to pay more attention to what is being said by characters, especially during programs in which the viewer is highly involved (Paul 2). Gisela Dawson, president of the Catalyst Placement Group, claims that, “When a star mentions a recognizable product, people in the audience will pat themselves on the back and say, “Look how smart I am-I’m using the same thing as my hero” (Rosenberg 2).

Plot Connection: This type of placement occurs most often and usually has the greatest impact on viewers. Plot connection occurs when a brand makes a low or high-level contribution to a storyline (Russell 308).  For instance, suppose that the cast of Will and Grace did an episode that involved the purchase of a new Honda for one of the characters. The brand is integrated into the story because the characters will deal with the product throughout the episode. Plot connection usually involves the physical handling of products and can have the greatest impact on viewers when the brand is highly connected to the plot (Russell 307).

The following graphs show the effects of the Tripartite Typology theory on attitude and recognition:

Source: Journal of Consumer Research, Dec 2002 v29 i3 p306(13) 

Why is product placement so popular during television programs? As previously noted, the main goal that marketers hope to achieve when using product placement is to establish or reinforce a brand. Today, product placement is considered an extremely important marketing tool. Product placement is not used to replace the marketing strategy of a company; it is used to enhance it (Rosenberg 2).  Marketers realize that reaching consumers during television shows is very critical because most people tune out commercials unless they are unique (Chunovic 1). Another reason for the rising popularity of product placement is due to the fact that many marketers see growing technologies as a threat. Today’s digital recorders make it even easier for viewers to zip through commercials or to avoid them altogether. With over half a million households using personal video recorders such as “TiVO,” viewers tend to skip commercials 72.3% of the time (Paul 3). Broadcast networks offer larger audiences more exposure during programs but cable television is starting to realize the impact that they could have on their target market since a great deal of the stations are considered, “niche networks” (Romano 2). For example, George Foreman could place his grills within a program on The Food Network in order to reach consumers interested in cooking.

What about movies? According to Richard Heslin, a professor of psychology at the University of Purdue, “When we watch a movie our defenses are down and we become more receptive to the messages coming at us” (Walker 1). As stated earlier, when we are repeatedly exposed to product placement, we are more likely to deeply process the information and generate greater recall. Companies are jumping on the opportunity to reach viewers who are caught up in the plot of a film for at least an hour and a half. In addition, since movies do not contain commercials, marketers are taking advantage of having the attention of the viewer for a greater amount of time. Many marketers feel that if a movie is a box office smash, the rewards from placing their product within the film will be outstanding (Rosenberg 2).

What kind of effect does product placement have on sales? The effect on sales is very difficult for companies to calculate because there are no specific measurements that all marketers use in order to determine the success of a product placement. In the past, most marketers tried to calculate the success of a product placement based upon the length of time that their product appeared on the screen and its context within the program (Fitzgerald 2). Since this method does not give an exact measure, many companies are turning to product placement tracking companies. ITVX is a company that provides marketers with research data regarding placements from the past. The company uses a scale in order to determine the impact of a product placement within certain shows. The company tries to value placements following the same methods that are used to put dollar signs on commercials (Chunovic 1). According to the head of ITXV, Frank Zazza, “Approximately twice as many people watch a show than the commercials within it and viewers tend to have a better recall of the show (Chunovic 2). As a result, clients are spending between $2,000 and $5,000 per month in order to access the information on the website regarding the expected profit from a placement. So just what type of dollar value does ITVX put on product placement? Here are a few examples of the facts clients will find when they subscribe to the website:

Source: Advertising Age Vol.73 Issue 48, p4.

What do viewers really think about product placement? As you have learned, most marketers feel that placing a major emphasis on a product is the best way to help a consumer to recall it after a program or film. Since product placement has been on the rise over the past couple of decades, many viewers are starting to notice the integration tactics and find them to be rather obnoxious. Consumers are much more skeptical today than in the past and many find that placing products in television shows and movies takes away from the entertainment value of the program (Walker 3). According to a recent online survey conducted by WPP Group’s Lightspeed Research, 75% of Americans feel that product placement is too pervasive and that it is rather distracting (Atkinson 1). However, most of the consumers surveyed between the ages of 18 to 34 find product placement to be entertaining and not a disruption. Here are the results of a question that asked consumers whether or not they feel that there is an increase of advertising intrusion in programs:

"Yes, there’s an increase of advertising intrusion in TV programs" (75% of the sample)

"No, it's about the same (25% of the sample) 

 Source: Lightspeed Research, survey of 500 consumers Dec 5-9. Margin error 4.4%

The Center for Digital Democracy was formed to promote noncommercial and public interest programming. They feel strongly that product placement is a growing concern for American television and movies because advertisers are beginning to influence content (Atkinson 1). Executive director for the group, Jeff Chester says, “The survey is an indication that there is fertile ground for directing consumer anger and getting the industry to clean up its’ act” (Atkinson 2). As you can see, most viewers are turned off when they view a program or a movie that contains multiple placements. One placement veteran added, “I never want the product placement industry to turn a sitcom into a tattoo parlor” (Atkinson 2). This feeling of intrusion by consumers is a major cause of headaches for marketers because the need to carefully integrate the product and the importance of reinforcing the brand through repetition can become extremely burdensome.

Examples

Example 1:  Most marketers agree that product placement began with the placement of Reese’s Pieces in the film E.T. The film was released in1982 and sale of the candy increased by 65% within just a couple weeks after the film came out (Paul 1). The film included a scene where E.T. enjoyed a package of the candies with Elliot, his human friend. The producers had originally told Mars, the maker of M&M’s, that they would use their candy in the movie if the company would help to promote the film but they said no. Reese’s jumped on the opportunity to promote their new product in the film. The movie was a huge success and introduced millions of Americans to the candy. Other companies realized that the placement in E.T. created a huge response from consumers, product placement was now evolving.

Example 2:  In 1990, Warner-Lambert Company’s Junior Mints were placed within an episode of Seinfeld. This placement was different from most because it did not place Junior Mints in a positive light. In the episode, a Junior Mint falls into a patient during an operation. The episode was extremely popular with viewers of the show and is now known as, “The Junior Mints” episode (Buss 2).

Example 3: In 1995, BMW placed its brand new Z-3 Roadster within the film, “007’s Goldeneye.” The placement helped BMW turn the launch of the new vehicle into one of the most successful introductions of all time (Rosenberg 1). Marketing partners received major promotions and the waiting lists for the vehicle increased as a result of the placement. In 1997, marketers tried to repeat the success of the first placement by advertising within the next bond film, “Tomorrow Never Dies.” This attempt flopped because the film was seen as a two hour long commercial. The film included placements from Visa, Avis Car Rental, Smirnoff Vodka, Heineken beer, Omega Watches, Ericsson Cell Phones, and L’Oreal Make-Up (Buss 2).  

Example 4: One of the most aggressive shows that uses product placement today is the “Best Damn Sports show” on the Fox Sports Network (Romano 2). The show features a bar area that is sponsored by Labatt's or Mike’s Hard Lemonade. The "talent" often relax on a back deck that bares the Home Depot name and they travel around in Lincoln Navigators (Romano 2). Fox Sports Vice President of  Ad Sales, Guy Sousa says, “Moderation is key, we don’t use the placements everyday- imagine how forced that would feel” (Romano 2). The company is taking advantage of reaching a niche audience on a cable network.

Example 5:  If you ask most students about obvious product placement, they will probably respond with, “American Idol.” This program features some of the most blatant product placement techniques ever used. Coca-Cola, Mastercard, Ford Focus, Old Navy, AT&T Wireless, and  Herbal Essences are dominating the program with set props, company logos, and pre-produced tape pieces (Friedman 1). Contestants wait in the “Coca-Cola red room” while waiting to perform and have fun during tape pieces called, “Coca-Cola Moments.” The judges also enjoy a coke while critiquing the contestants. The program is now asking viewers to vote for their favorite singer by using their AT&T Wireless phone to text message their vote.
 

Relevant Web Sites:

http://www.productplacement.biz/product-placement-1.html provides up to date news and information regarding product placement.

http://www.itvx.com/default.asp?SID=GhvAAV1LBDgSe5bv3KxO IVTX official site- provides news, information, and examples of product placement.

http://www.business2.com/articles/mag/0,1640,38583,00.html Has product placement had an impact on you? Take this quiz and find out.

http://www.erma.org/ Entertainment Resources and Marketing Association website. Provides great information regarding how products are placed within films.

http://www.med.sc.edu:1081/prodplacement.htm This site provides links to over 30 articles that discuss product placement. The site also provides photos of product placement.

http://www.idolonfox.msn.com This is the official site for American Idol. The site provides a more in depth look at how companies integrate their brand name into the show.

http://www.productplacementawards.com/ You won’t believe this one, this site is about awards that are given out each year for the best use of product placements!

Test for Understanding

1. Product Placement is:
a) a consumers interpretation of a product and its benefits
b) the value consumers assign to specific brands above the functionality of the product
c) a form of advertising in which marketers pay to have a product shown in the media
d) a deliberate decision to significantly alter the way the market views a product

2. Which type of product placement usually has the greatest impact of viewers?
a) Plot connection
b) Motivation strategy
c) Auditory Placement
d) Visual Placement

3. Why is cable television becoming increasingly important for product placement?
a) Items can be placed within programs at a much cheaper rate
b) it is easier for marketers to reach their target market
c) consumers tend to watch more cable television
d) people tend to recall placements better when they were viewed on a cable program

4. This age group feels the most strongly that product placement is too intrusive in television programs and movies.
a) age 55 +
b) age 18-34
c) age 35-44
d) none of the above

5. Which of the following is not a factor that influences the impact of auditory placement?
a) The frequency that the brand is mentioned
b) The consumer’s attitude toward the product
c) The context in which the brand is mentioned
d) The emphasis placed on the brand name

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Answer Key:

1. ( c) 2. (a ) 3. ( b ) 4. ( a ) 5. ( b )

References

Atkinson, Claire. “Merger of Advertising and Content Worries Consumers.” Advertising Age January 2003.Vol. 74 Issue 1, pg. 1-2.

Buss, Dale. “A Product-Placement Hall of Fame.” BusinessWeek  McGraw-Hill Inc. June 1998. www.businessweek.com/1998/.htm

Chuvonic, Louis. “Trying to Price Placement.” Advertising Age December 2002. Vol. 73. Issue 48.

Fitzgerald, Kate. “Growing Pains for Placements.” Advertising Age February 2003. Vol. 74. Issue 5.

Friedman, Wayne. “American Idol Sets TV Ad Rate Record.” Product Placement News http://www.productplacement.biz/product-placement-1.html

Paul, Noel C. “What You See is What They Want You to Get.” The Christian Science Monitor. 2003. www.csmonitor.com

 Romano, Allison. “Cable Takes to Product Tie-Ins; Sales Execs, Buyers Agree: Placement Must be Subtle, Well Matched.” Broadcasting and Cable January 2003. Vol. 133 pg. 14.

Rosenberg, Marc. “Let us put you in the Movies.” Brandweek September 1996. Vol. 37 pg. 3.

Russell, Cristel. “Investigating the Effectiveness of Product Placements in Television Shows: The Role of Modality and Plot Connection Congruence on Brand Memory and Attitude.” Journal of Consumer Research December 2002. Vol 29.

Walker, Kate “Films May Carry a Hidden Pitch in the Plot.” Purdue News June 1999.