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Product Placement:On the Rise in Music-
Record labels are attempting to make videos a revenue source and not just a marketing tool
The money is often used to offset the video’s cost, which is usually shared by the artist and label
Fast becoming the go to place for any brand looking to engage with a younger audience
Product Placement:On the Rise in Music-
By 2017, video will account for 69% of all consumer internet traffic- music is a key beneficiary of this shift
Technology is advance so that products viewed in music videos will be clickable and purchasable
Product Placement:On the Rise in Video Games-
There are 132 million teen and adult gamers in the U.S.- nearly ½ of all households have a game console
Games offer an immersive environment that can be enhanced by the incorporation of a branded product
Product placement is a partnership with the game developer
Product Placement:On the Rise in Video Games-
Games typically use brands in three ways:
Compiled by author from source: lawofthelevel.com
Branded Entertainm
entProduct
PlacementExtra-
Contractual Use
Product Placement:On the Rise in Video Games-
Things to consider when advertising in video games:
Compiled by author from source: lawofthelevel.com
Quality Placement
ControlDuration
and Terminati
on
Product Placement:Money Breakdown-
For a brief movie mentions it costs an average $22,000 per placement
Primetime T.V. series integrations can run $3 to $10 million
The average cost to produce a T.V. commercial is $392,500
Prop product placement average around $50,000 per brand for an unlimited number of placements
Product Placement:Relationship with Revenues-
When T.V. or movie revenues are high, product placements exhibit a positive relationship- unless placement is used in excess
Consumer benefits from product placement don’t differ between movies with different budgets or qualities
Product Placement:Revenues & Excessive
Placements- When the number of placements passes a saturation point, revenues
are affected
Excessive placements generally appear to be associated with poorer box office performance
Product Placement:Indie Films-
It helps the bottom line
Sponsors help with parties and marketing
Securing a placement can be easy
It creates authenticity
Compiled from authors at indiewire.com
Product Placement:Integration is Risky
Business-
Compiled from authors at priceonomics.com
Timing• Integration in a movie or TV show means taking on the risk that the content
will be launched early, delayed, or even canceledCreative Control
• Integration means playing by someone else’s rules
Brand Association• A brand partnering with, or integrating into, a star-driven medium bears the
risk of that individual’s own brand imageCommercial Failure
• Paying a few million dollars to integrate into a movie that becomes a box office hit is a fantastic deal- Paying a few million to integrate into a bomb is an embarrassment for the brand
Consumer Burnout• As integrations become more common their omnipresence tend to annoy
consumers, damaging brand equity
Product Placement:Digital Brand Placement-
Digital placement is fundamentally different- Products on screen were never there in the first place
Digitally adding brands into old content has existed in T.V. for years, but more recent for music videos
Product Placement:Retroactive Product
Placement- Ads can be inserted, replaced and deleted almost instantaneously
Product placement can be added to suit various audiences or to make scenes available to multiple advertisers
Companies can also target audiences by localizing ads
Success Stories of Product Placement:
Risky Business- Film was released in the 1983
Tom Cruise wore a pair of Ray-Ban Wayfarer sunglasses
Company was thinking of discontinuing the line before the movie
18,000
360,000
Units Sold
1981 1983
Compiled from authors at brandongaille.com Image source: Google Images
Success Stories of Product Placement:
E.T.- Film was released in 1982 and
become one of the highest grossing films of all time
Hershey agreed to have Reese’s Pieces to be used in the film
Profits went up 65% in just one year
Image source: Google Images
Success Stories of Product Placement:
GoldenEye- Film was released in 1995
BMW signed a film deal to have their Z3 featured in film
The vehicle wasn’t even on the market yet, but the movie resulted in 9,000 pre-orders for the car
Image source: Google Images
Success Stories of Product Integration:
The Italian Job (The Remake)- Film was released in 2003
Mini Coopers were used as the get away cars
BMW saw a sales increase of 22%- even though the movie only saw moderate success
Image source: Google Images
Success Stories of Product Integration:
Transformers- Film was released in 2007
The Autobot version of the Chevy Camaro help sell over 60,000 units by the end of 2009
Image source: Google Images
Success Stories of Product Integration:
Top Gun- Film was released in 1986
The US Navy’s number of new recruits increased by 500%
Image source: Google Images
Product Placement:Controversy-
The trend of integrating products makes some uneasy
Some worry that placement in realistic shows influence consumers and distort their perception of the world around them
Placement also may reflect a world where only the product is worth using – It spins the wheels of a commercial feedback loop
Contact Us for the Full Presentation:
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Clearwater, Fl. 33760
T: 727 538 4112E: contact@mcusa.co
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Works Cited Brown, Erika. "Product Placement on the Rise in Video Games - Technology & Science - Tech and Gadgets - Forbes.com | NBC
News." Msnbc.com. NBCNews.com, n.d. Web. 22 Feb. 2016. <http://www.nbcnews.com/id/13960083/ns/technology_and_science-tech_and_gadgets/t/product-placement-rise-video-games/>.
Gaille, Brandon. "46 Product Placement in Movies Statistics." BrandonGaille.com. N.p., 23 Jan. 2015. Web. 22 Feb. 2016. <http://brandongaille.com/46-product-placement-in-movies-statistics/>.
Genco, Steve. "A Neuromarketing Perspective on Product Placement in Movies and TV Shows : Intuitive Consumer Blog." Intuitive Consumer Insights. Intuitive Consumer Blog, 15 Oct. 2015. Web. 22 Feb. 2016. <http://intuitiveconsumer.com/blog/a-neuromarketing-perspective-on-product-placement-in-movies-and-tv-shows/>.
Hobbs, Thomas. "Why Brands Need to Include Music Videos in Their Marketing Mix."Marketing Week. Centaur Communications Ltd, 24 Aug. 2015. Web. 22 Feb. 2016. <https://www.marketingweek.com/2015/08/24/why-brands-need-to-include-music-videos-in-their-marketing-mix/>.
Kolowich, Lindsay. "From Ray-Bans to Reese's Pieces: 13 Unforgettable Examples of Product Placement." HubSpot Blog Homepage. HubSpot, 12 Nov. 2015. Web. 22 Feb. 2016. <http://blog.hubspot.com/marketing/product-placement-examples>.
"Mistake 27: Overlooking 10 Important Reasons Why Brands Do Product Placement."Hollywood Branded Blog. Hollywood Branded Inc., 1 Dec. 2015. Web. 22 Feb. 2016. <http://blog.hollywoodbranded.com/overlooking-10-important-reasons-why-brands-do-product-placement>.
Mullin, Sheppard. "Branded: Product Placement and Video Games." Law of the Level. Sheppard, Mullin, Richter & Hampton LLP, 19 June 2009. Web. 22 Feb. 2016. <http://www.lawofthelevel.com/2009/06/articles/advertisingmarketing/branded-product-placement-and-video-games/>.
Nathanson, Jon. "The Economics of Product Placements." Priceonomics. N.p., 4 Dec. 2013. Web. 22 Feb. 2016. <http://priceonomics.com/the-economics-of-product-placements/>.
Newman, Jason. "Old Videos, New Ads: Advertising's Shocking Next Frontier." Rolling Stone. N.p., 4 Nov. 2014. Web. 22 Feb. 2016. <http://www.rollingstone.com/music/features/old-videos-new-ads-advertisings-shocking-next-frontier-20141104>.
Works Cited O'Reilly, Terry. "Show Me The Money: The World of Product Placement." CBCRadio. CBC/Radio-Canada, 4 Aug. 2015. Web.
22 Feb. 2016. <http://www.cbc.ca/radio/undertheinfluence/show-me-the-money-the-world-of-product-placement-1.3046933>. Osborn, John R. "Vast Difference In Program & Ad Viewing Highlighted By Millennials Stats."Online VideoInsider. MediaPost
Communications, 20 Jan. 2016. Web. 22 Feb. 2016. <http://www.mediapost.com/publications/article/267133/vast-difference-in-program-ad-viewing-highlighte.html>.
Palmbeck, Joseph. "Product Placement Grows in Music Videos." The New York Times. N.p., 5 July 2009. Web. 22 Feb. 2016. <http://www.nytimes.com/2010/07/06/business/media/06adco.html?_r=0>.
Persaud, Christine. "TV Networks Eyeing New Commercial Formats for Fall Season." Digital Trends. N.p., 24 Aug. 2015. Web. 22 Feb. 2016. <http://www.digitaltrends.com/movies/networks-integrate-advertising-into-shows-late-night-empire/>.
"The Relationship Between Product Placement and the Performance of Movies: Can Brand Promotion in Films Help or Hurt Moviegoers’ Experience?" The Advertising Research Foundation. The Advertising Research Foundation, n.d. Web. 22 Feb. 2016. <http://thearf.org/5-cups/the-relationship-between-product-placement-and-the-performance-of-movies-can-brand-promotion-in-films-help-or-hurt-moviegoers-experience/>.
Robb, David (2004). Operation Hollywood: How the Pentagon Shapes and Censors the Movies. New York: Prometheus Books. pp. 180–182. ISBN 1-59102-182-0.
Sapienza, Ethan. "4 Reasons Why Product Placement Can Be Good for Indie Fil." Indiewire. N.p., 22 July 2015. Web. 22 Feb. 2016. <http://www.indiewire.com/article/4-reasons-why-product-placement-can-be-good-for-indie-film-20150722>.
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