Trends in Product Placement: Hyper-reality or commercial pollution?

Undergraduate Media Conference | 04/20/12

Grant Spanier University of St. Thomas

TRENDS IN PRODUCT PLACEMENT Hyper-reality, or commercial pollution?

Undergraduate Media Conference | 04/20/12

1. Research Purpose 2. Advertising Background 3. Product Placement 4. Research

AGENDA

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 Study the value, effects and future of product placement.

 Focused exclusively on millennials (18-29)

 Designed to understand millennial opinions on product placement.

PURPOSE

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Answer these:

How does product placement function? How effective is it? How bothersome is it to viewers? Is it morally objectionable?

PURPOSE

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Hyper-reality, or commercial pollution?

PURPOSE

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WHAT IS IT? -  Embedded Advertising -  Story Alteration -  Product Integration -  Booming Industry -  Marketing Solution -  Unavoidable

Movies Television (offline/online) Music Videos

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WHAT IS IT?

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WHAT IS IT?

E.T.

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WHAT IS IT?

65% SALES INCREASE

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BACKGROUND The Biggest Loser – 6,248 American Idol – 4,636 Extreme Makeover: Home Edition – 3,371 America's Toughest Jobs – 2,807 One Tree Hill – 2,575 Deal or No Deal – 2,292 America's Next Top Model – 2,241 Last Comic Standing – 1,993 Kitchen Nightmares – 1,853 Hell's Kitchen – 1,807

Most instances of Product Placement:

h"p://www.mediapost.com/publica4ons/ar4cle/120680/

$60 million + 1

1

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$3.1 billion in 2006

$7.6 billion in 2010

BACKGROUND

More than doubled in less than 5 years.

1

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WHY THE INCREASE?

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Death of the 30 second spot:

WHY THE INCREASE?

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Death of the 30 second spot:

 Snowball effect—ads, ads, ads  More media channels—more messages  Conditioned generation

WHY THE INCREASE?

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Death of the 30 second spot:

 DVR / skipping commercials  Social Media  Multi-screen viewing habits

WHY THE INCREASE?

66%

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Death of the 30 second spot:

 DVR / skipping commercials  Social Media  Multi-screen viewing habits

Solution = Product Placement

WHY THE INCREASE?

66%

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ADVERTISING IS CHANGING.

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ADVERTISING IS CHANGING. CHANGED.

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CHANGING BEHAVIOR CHANGES MEDIA.

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CHANGING BEHAVIOR CHANGES ADVERTISING.

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Effective advertising.

Additional revenue generator.

“DVR proof.”

Lower production costs.

More realistic.

PRODUCT PLACEMENT

Pros

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PRODUCT PLACEMENT

Cons

More advertising messages.

Ruins integrity of creative work.

“Secret advertising.”

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REASEARCH METHOD  Anonymous 12-question survey

 100 respondents

 All between 18 & 29 years old

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RESULTS | Media Consumption

17.7

4.2

6.5

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17.7

4.2

6.5

71%

29%

RESULTS | Brand Awareness | TV

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RESULTS | Brand Awareness | Film

17.7

4.2

6.5

71%

29%

73%

27%

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WHAT DOES THIS MEAN? THEY KNOW IT’S THERE.

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BUT HOW DO THEY FEEL ABOUT IT?

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BUT HOW DO THEY FEEL ABOUT IT? NOT SO BAD.

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RESULTS | Program Disruption | TV

17.7

4.2

6.5

71%

29%

73%

27%

72%

53%47%

28%

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RESULTS | Program Disruption | FILM

17.7

4.2

6.5

71%

29%

73%

27%

76%

57%

43%

24%

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SO, WHAT WOULD THE RESPONDENTS PREFER?

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A. LESS COMMERCIALS, MORE PP.

B. MORE COMMERCIALS, LESS PP.

C. NO CHANGE

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RESULTS | Alternative System

17.7

4.2

6.5

71%

29%

73%

27%

76%

6% 18%

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UNFORTUNATELY, THAT’S NOT GOING TO HAPPEN.

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PRODUCT PLACEMENT IS OKAY.

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PRODUCT PLACEMENT IS OKAY. USUALLY.

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A PREFERRED, LESS-INTRUSIVE FORM OF ADVERTISING.

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BRANDS THAT GET PLACEMENT RIGHT CAN RULE THE SPACE.

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IF IT BENEFITS THE SHOW, THE BRAND WILL BENEFIT.

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IF IT BENEFITS THE AUDIENCE, THE BRAND WILL BENEFIT.

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IF IT BENEFITS THE AUDIENCE, WE ALL WIN.

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Grant Spanier

grantspanier.com grantspanier@gmail.com @grantspanier

Presentation can be found online:

slideshare.com/grantspanier

THANK YOU!