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Product Place-ment
TypesPros and Cons
How-To
So you want to be in pictures?
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Types of Product Placement
1
Paid
place
ment
2
Barte
red
place
ment Unp
aid
place
ment
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3
Unpaid
place
ment
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Paid PlacementTypically ensures
the most impactful
placements
Rates vary dramatically and
there are no industry rate standards.
Negotiating paid placments should be handled by a
person with experience in
negotiating paid placements.
Requires a direct
connect to filmakers
Paid Place-ment
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Scene from Forrest Gump
Scene from Wayne’s World
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Bartered Placements
Scene from Terminator 2
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Bartered Place-ment
Bartered placements are not always the
strongest
Movie promotional departments are
not always able to secure or impact
placement
Placement is exchanged for promotional
support and/or production
assets
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Unpaid Placements
Scene fromThe Last Stand
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Unpaid Place-ment
Typically require a direct
relationship with filmakers
Mostly small wins with an occasional
big win.
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Global Box Office – All Films (US$ bil-
lions)
2012
2014
2013
$34.7 $35.9
2015
$36.4 $38.3
Source MPAA
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Source MPAAInternational
US/Canada
2011 2012 2013 2014 2015
All Films (US$ bil-lions)
$10.2
$22.4
$10.8
$23.9
$10.9
$25.0
$10.4
$26.0
$11.1
$27.2
Global Box Office
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Potential Reach
Cinemas
1.32 Billion
Theme Parks Sports2014-15 Sea-sonSource: Wikipedia
2014Source: TEA AE-
COM 2014 Theme Index
2015Source: MPAA
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392 Million 137 Million
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People Go To The Movies1.32
billion tickets were sold in the
US/Canada in 2015
More than 2/3rds of the US/Canada population went to a movie in 2015
Average tickets purchased per person 3.8 tickets
152,000 cinema screens worldwide in 2105
Cin-ema
Source MPAA
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Pros of Product Placement in FilmA truly captured au-dience
In-theatre viewing captures at-tention in a way that television cannot.
According to TNS Media Intelli-gence, 36% of an hour-long television program are com-mercials compared to 18% in 1981.
Attention81% of Americans almost always or always engage in
another activity while watching TV. The
figure is 88% among 24-29 year olds.
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Source: Deloitte Research
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Pros of Product Placement in FilmLow CPMs that decrease over time
Calculating initial ROI for paid placementsTotal DVD Ave # of Total Total # Cost
Ave. ticket # of tickets and Blu Ray viewers # of DVD of movie Placement per 1000Theatrical Box Office* price** sold sales *** per DVD**** viewers viewers***** fee viewers
$97,594,140 $7.89 12,369,346 1,172,762 10 11,727,620 24,096,966 $10,000 $0.4150$293,503,354 $7.89 37,199,411 1,997,308 10 19,973,080 57,172,491 $25,000 $0.4373
$1,065,219,746 $7.89 135,008,840 not yet on DVD 10 0 135,008,840 $200,000 $1.4814
* Source: boxoffi cemojo.com
** Source: Hol lywood reporter
***Source: the-numbers .com
****Source: Estimated DVD viewership per DVD according to deadl inehol lywood.com.
Additional distribution that lowers CPM includes movie rentals/downloads, hotel and air-line viewing, premium channel distribution (i.e. HBO, Showtime, etc), cable channel distribution
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Placements Keep on Giving
Home Enter-tainment
The Movie
Downloads
The Se-quel .
Your brand becomes part of the life cycle of the movie giving you even more visibility.
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The Worth of Product Placement in Successful Films: An Event Study Analysis. Journal of Marketing
Can disclosure lead consumers to resist cover persuasion? The im-portant roles of disclosure timing and type of response. Journal of Consumer Psychology
Product Placement Can Be a Lot more Powerful Than We Realize. Psychology Today
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Increased Brand Cache
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Cons of Product Placement
ROI can be dif -ficult to quanti-
fy
It is relationship business (which can be beneficial)
It’s an organic process with many décision makers (It’s not for those
with control issues)
Lead times are of-ten 9 to 24 monthsCons
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More Bang for Your Buck
57%
Movie stu-dios spend over 57%* of their budget on marketing
*Source Reuters/Media Valuation Partners
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Promotions can be as powerful or have more impact than the placement itself
Branding
Promotional overlays substantively increase recall of placement
Overlays
Leveraging Placements with Pro-motion
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Promotional partnerships have been shown to have a quantifiable impact on brand affinity and sales intent.
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How to Activate with Promo-tion
Retail Activation Social media
Publicity and PR
Acti-vate
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Advertising
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How to Activate with Promo-tionRetail Activa-tion
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Possible tactics include:- Signage and point of sale mate-rials- Contests and sweepstakes- Special offers
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How to Activate with Promo-tionPublicity and PR
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Working with the media dramatically leverages placements. An Entertain-ment Tonight interview with Taylor Lautner during the filming of the movie Tracers produced millions of free impressions for the Royal Purple brand.
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How to Activate with Promo-tionSocial Media
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Promotional partner-ships can increase so-
cial media interaction with consumers via activi-
tiessuch as sweepstakes and custom content.
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Speak with
others who are
doing it
So how do I get started?
Ask tough questions
of candidate ageniesEntertainmen
t & Marketing Association
wwww.erma.org
Consider using
an agency
Product Placemen
t
The Entertainment & Marketing Association is a reliable source for agencies.
When candidate agen-cies are identified ask tough questions: • Request documenta-
tion of performance• Ask their strengths and
weaknesses• Ask specifically with
whom they have the best working relation-ships inside the indus-try
• Require a performance guarantee
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For more information
Contact Mark McFann [email protected]
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