Product Placement

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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
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