ENTERTAINMENT MARKETING Brian Gillespie May 19, 2010 Entertainment Marketing Product Placement Film Merchandising Branded Entertainment What is Product Placement? The insertion of branded products or services into mass media content with the intent of influencing consumer attitude or behavior http://www.youtube.com/watch?v=aGlFPIg0H6U http://www.youtube.com/watch?v=R22qigXhFjk http://www.youtube.com/watch?v=5A0-u85aAYg Why product placement? Oversaturation of traditional advertising outlets Reach a captive and involved audience Product Placement History Lumiere films in the 1890s E.T. http://www.youtube.com/watch?v=j4hP2fL8liE http://www.youtube.com/watch?v=AfAzUAxWELU Today it is a $3.36B dollar industry Product channels TV Film Books Video Games Music and Music Videos What do we know? Placements have direct effects on different consumer attributes Brand recognition (cognition) Brand attitudes (affect) Consumer choice (conation) Type of placements Placement (subtle vs. blatant) on recognition and attitudes (Law and Braun 2000) Blatant placements are more recognizable than subtle placements Modality (auditory vs. visual) and plot connection (low plot connection vs. high plot connection) on recognition and attitude (Russell 2002) High plot connection-auditory and low plot connectionvisual placements increase attitudes Frequency of Placements Type of placement (subtle vs. blatant) and repetition of placement (low repetition vs. moderate repetition) on attitude (Homer 2009) Character and Product Interactions Attitudes toward the character vs. attitudes toward the product when the character interacts with the product (Russell and Stern 2006) Viewer Program Liking Program liking (low vs. high), prime (not present vs. present), and prominence (subtle vs. blatant) for recognition and attitudes (Cowley and Barron 2008) Those who like a movie dislike placements more Distracting from the show Viewers feel betrayed Ego Depletion A state of mental fatigue created from the depletion of a single limited self-regulatory resource, brought on by continued self-regulation Works like a muscle Daily tasks are ego-depleting The majority of television is watched at night during primetime television hours, when people are most likely depleted Theoretical Model Ego-depletion Outcome Exposure to PP Brand Recognition Brand Attitudes Results Three Way Interaction Placement, Attitudes and Recognition, and Ego-Depletion Condition 0.4 0.3 0.2 0.1 Recognition 0 Attitudes -0.1 -0.2 -0.3 -0.4 Control LPC ED Control HPC ED Control ED Not Placed Product Placement In Literature Impact of negatively framed placements in literature Half of you were told it was a Visio television, half were given no television brand The television did not work Brand attitudes toward Visio and Panasonic televisions were measured and subjected to a oneway ANOVA Results The effect of the negative placement on brand attitudes toward Visio was significant at p = .08 (one way) In other words, the likelihood that there was a significant difference in brand attitudes between conditions is 92% 4.8 4.7 Brand Attitudes 4.6 4.5 4.4 4.3 4.2 4.1 4 Visio Panasonic Control Condition Experimental Condition Susceptibility to Product Placement Scale development of seven different dimensions Predisposition to product placements The seven scales were used to create a predictive model for susceptibility to persuasion Product placement skepticism path Product placement avoidance path Susceptibility to Product Placement Model Film Merchandising Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity Film merchandising refers to the commodities or products based on movie themes, characters and or images that are designed, manufactured and marketed for direct sale http://www.youtube.com/watch?v=xvmZ9SPcTzU Film Merchandising History First major film merchandising success http://www.youtube.com/watch?v=-GqR1q0vaSs Traditionally, film merchandising has been used to target kids through toys Increasing number of toys aimed at adults Clothing lines are becoming popular Today licensed products for entertainment merchandise generate $16 billion a year Merchandise First Toy lines that inspired films and television shows G.I. Joe Hasbro toy Inspired animated television show and live-action movie Transformers http://www.youtube.com/watch?v=yxVdqHn-tOo&feature=related Approximately $600 million in merchandise sales after Transformers 2: Revenge of the Fallen Branded Entertainment The creation of original media content, specifically designed to promote a brand or product Commonly found online Attempts to create a pull strategy drawing customers to the product through offered entertainment http://www.youtube.com/user/Sienna?v=hiLNG153aRI&feature=pyv&ad=5073201044&kw=swagger%20wagon