Product Placement

Product Placement

 

According to CommonDreams.org, by the end of 2004, there were an estimated 6.5 million homes with digital recorders.  With the increase in DVRs consumers are less likely to view commercials and skip through them. More than two-thirds of DVR users skip commercials.  So, with the fact that most consumers are skipping commercials, advertisers had to come up with ways in which to get their products noticed.

 

Product placement is a form of advertisement, it is showing a brand name product in a feature film, television program, or other medium not typically perceived to be an advertising medium. The marketer sometimes pays a substantial fee for the placement. In other cases, the producers consider the product to be an integral part of the plot and merely request permission from the marketer. The marketer benefits from exposure to a large audience in an environment that is perceived to be objective.

 

Some companies consider product placement as alternate advertising. According to Premier Entertainment Services International, Product placement breaks through today’s cluttered media environment. Builds awareness and brand loyalty, expands reach, increases frequency of exposure, is cost effective, provides “soft-sell” through positive association, features products in an environment free of commercial zapping, and provides implied endorsement of your product by a celebrity.

 

The cost of product placement does not come cheap.  The average cost of placing an ad on ABC, NBC, CBS, and Fox is about $175,000 for a 30 second ad.  Most companies invest in an advertisement plug that cannot be skipped along with purchasing ad space.  CommonDreams.org also stated that Volkswagen will spend $200 million over three to five years to place its cars in Universal movies and in TV shows and ads on NBC, Bravo, Sci Fi and USA.  With the average cost of a national prime time spot running $185,000, coupled with the cost of $343,000 to produce the average 30 second spot, product placement is a much more cost-effective proposition.

 

Examples of product placement according to Listverse (ultimate top 10 lists)

1. Reese’s Pieces in E.T
2. Pepsi  in Back to the Future
3. Subway in Happy Gilmore
4. The Miami Dolphins in Ace Ventura: Pet Detective
5. Mello Yello in Days of Thunder
6. FedEx in Cast Away
7. Dodge in Twister
8. Mercedes Benz in The Lost World: Jurassic Park
9. Apple Computer in Mission Impossible and Independence Day
10. Taco Bell in Demolition Man

 

References:

Answers.com http://www.answers.com

Common Dreams http://www.commondreams.org

Listverse http://listverse.com

Premier Entertainment Services International http://www.pesfilmtv.com/product.html