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Undergraduate Media Conference | 04/20/12
Grant Spanier University of St. Thomas
TRENDS IN PRODUCT PLACEMENT Hyper-reality, or commercial pollution?
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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 [email protected] @grantspanier
Presentation can be found online:
slideshare.com/grantspanier
THANK YOU!
