Product Placement Essay Example

of the tubs. One case featured the French brand "Sunlight Savon" and the other featured the German "Sunlight Seife." This research was presented by Newell in 2010.

Shortly after the Frenchmen's clever notion for soap placement, Thomas Edison transformed product placement into a lucrative business. In his films, Edison utilized the rail line his crew traveled on for transportation and incorporated advertisements for his products like the phonograph inside the railcar. This was a cost-cutting strategy to boost his productions (Newell, 2010). Radio shows in the 1930s would also feature single advertiser sponsorship as an example of product placement.

Not only was the product advertised through commercials before, during, and after the show, but it was also included within the content of the show itself. Ovaltine, a milk supplement, sponsored Little Orphan Annie's debut in 1931, allowing fans to use proofs of purchase to redeem a secret decoder ring or badge which could decode brief messages aired in the last moments of the show. This is best exemplified in the movie A Christmas Story, where the protagonist receives his Little Orphan Annie decoder ring in the mail and eagerly decodes the message, only to find out it is a "crummy commercial" reminding him to drink his Ovaltine. The integration of the product from radio content to the hands of actual Ovaltine consumers was ahead of its time.

Product placement's long-lasting success is evident in these early examples. The idea works because consumers feel comfortable using products used by celebrities, even on TV or in movies. It's important to note that product placement isn't the same as brand identity, where celebrities inspire product use in their real lives. The

landscape of modern advertising saw product placement's success starting in 1982 with E.T.: The Extraterrestrial. In the film, the main character uses Reese's Pieces to lure his alien friend from hiding.

Initially, Mar’s Inc was given the opportunity to feature their well-known candy M;M’s in the movie. However, Mar’s rejected the offer, which enabled Hershey’s Inc to seize the chance to promote their latest product, Reese’s Pieces. There are various speculations concerning why Mar’s declined the offer, one of which suggests that they did not wish for M;M’s to be connected with the sensitive issue of “extraterrestrial” activity, which was a hot topic in the early 1980s. Even though the reason behind Mar’s decision is unclear, Hershey’s gained a significant advantage from the agreement.

During the early stages of modern product placement, Hershey did not provide direct payment for the placement. Instead, they agreed to complete advertising work for E.T. valued at one million dollars. This arrangement allowed Hershey to feature E.T. in their own advertising efforts.

According to Lehu (2009), Reese's Pieces sales reportedly increased by 65 percent within two weeks of the premiere. Reichert (2008) defines product placement as being placed into editorial content at three levels of prominence. The first level is prominent placement, which involves the product being an integral part of the story line.

A good example of product placement is shown in the movie Transformers, where the Chevrolet Camaro named Bumblebee serves as the main character and brand. The placement is categorized into three levels: hero placement, where the product is held by the actor but not mentioned; low prominence, where the product is seen in the background without dialogue; and high prominence,

which positively impacts brand recall, according to previous research by Russell (2005). Prominence can be influenced by various variables that are expected to enhance recall.

According to Chang (2008), a placement's duration on screen affects its level of prominence and improves recall. Additionally, the larger the size of a product or logo displayed, the more likely it is that the audience will remember it. The location of the brand image on-screen also plays a crucial role in recognition. Product placement has become a mainstream advertising tool, with over 1,000 US brands incorporating it into their marketing mix (Riechert, 2008). This practice has grown significantly since 2005, when it was valued at 3.4 billion dollars. In some fully produced movies, there can be over 500 product placements.

Placements in movies are often used to cover production costs and as a form of box office insurance. An example can be seen in New Line Cinema's Sex and the City: The Movie, which featured numerous products paid to be included, leading it to be called the "Super Bowl for women". The placements can be broken down into seven categories including designers, stores and services, gadgets, publications, snacks and drinks, health-related items, and transportation methods. The movie incorporated both familiar brands from the HBO series as well as new ones, such as Carrie Bradshaw's MacBook from Apple.

Incorporating brands into movies has contributed to production cost savings and increased profits due to the overwhelming success of the films. Many brands, including Manolo Blanik, have reported increased sales following placement in movies. The decision to include product placements in movie scripts is made by movie studios such as Universal Studios and Disney, who

send scripts to clients for approval of brand usage either directly or through a placement agency. The product placement industry is still relatively new, resulting in variations in agency types, company usage, and studio organization for dealing with them.

Either the studio or the actor may choose the brands they wish to use. Such preferences can establish lasting connections suitable for upcoming productions, as Cowley (2008) notes. However, Reichert (132) warns that product placement can have downsides, as studies reveal growing consumer disdain and distrust towards modern marketing tactics.

During class discussion, it was noted that over saturation of product placement can occur. For example, the movie Wayne’s World heavily features Pizza Hut and Pepsi without any regulation to limit the number of products displayed in one scene or even one frame. This practice can be extremely distracting for audiences and may lead them to become disinterested in any product they see on screen. Full disclosure is also not provided, unlike in commercials, which some people find unethical due to the lack of transparency.

According to Cowely (2008), integrating products more subtly into the story leads to a better response from consumers. Consumers don't want their entertainment to feel like an advertisement, so it's important for producers to blend products into the content seamlessly. While some may choose to blur out labels or use generic products, this can take away from the realism of the story. If disclosure is necessary, Cowely suggests adding a list of companies in the movie credits. Additionally, Chang (2009) notes that product placement isn't limited to just movies and TV shows, but also occurs in radio shows, music videos, video games, plays, and

even novels. This diversity has helped make product placement a successful industry.

The better the industry performs, the more output it produces. The definition of product placement considers different models of brand presentation and multiple levels of brand integration. It also recognizes that not all placements are paid for. Lady Gaga's music video for "Telephone" demonstrates the usefulness of product placement and how not all placements require payment. The scene where Gaga makes sandwiches uses WonderBread, which was chosen by the video director as a preferred brand and used with permission from the company, but it was not a paid placement example.

While featuring in a scene, Gaga made use of Miracle Whip sandwich spread as a paid product placement. This move by Miracle Whip was aimed at projecting an unconventional image. Despite the fact that product placement has been in existence for a while, the industry is still at its early stages of development. With time, it is projected that product placements will constitute a significant portion of advertising budgets while marketers will seek increased accountability.

According to Wiles (2009), the use of product placement, as with other mediums, necessitates increased authentication of its contribution. The growth of the product placement industry should take cues from the internet advertising industry, which saw a comparable surge in popularity. Ultimately, product placement will be required to demonstrate its effectiveness and be compared to other forms of media. However, I am confident that with sufficient evidence, product placement will be able to do so.