This Must Be The Place– 
Product Placements, American Idol 
and Ford’s Multimillion-Dollar Mistake 
1
Source: 
2
Sameer Mathur 
BuddingMarkets.com 
Indian Institute of Management, 
Lucknow 
Marketing Professor 2013 – 
Marketing Profess...
“ Neuromarketing is 
it’s about uncovering 
what’s already inside 
our heads 
—our Buyology” 
Martin Lindstrom - Buyology ...
In 1965 a typical 
consumers had a 
34% recall for ads, 
in 1990 that figure 
had fallen to 8% 
The relentless 
advertisin...
This must be the place
To identify whether the product placement 
in the show American Idol helps in creating 
a lasting impact in the consumer’s...
American Idol has three main sponsors – Cingular Wireless, Ford 
Motor Company & Coca-Cola 
Cingular Wireless – Runs 30 se...
9 
Product Placement, American Idol and 
Ford’s Multimillion-Dollar Mistake 
The Experiment – The Sponsors
Four hundred subjects were chosen to go through the SST test that 
mathematically measures the brain waves in real time 
T...
The subjects were shown 2 shows, one was a 20 min special edition of 
American Idol followed by a screening of another sho...
Before-Screening: No matter how frequently the products were 
featured during the show, the memory of branded logos was th...
Coke had permeated 60% of the show – Soft drink cups – Furniture- 
Décor. Coke reinforced throughout the show 
There was n...
Coke saturated show had suppressed memory of Ford commercials 
Ford had invested $ 26 million in yearly sponsorship but – ...
Mid 1940s Warner Bros. movie had General Electric refrigerator or a 
love story with diamonds from DeBeers Co. 
E.T. Extra...
This must be the place 
Product Placement in Movies
This must be the place 
In Steven Spielberg’s E.T.: The Extra- 
Terrestrial, a boy named Elliott 
discovers an extraordina...
This must be the place
This must be the place 
In the late 1970s and early ’80s, 
the U.S.-based sunglasses 
manufacturer Ray-Ban was fighting 
t...
This must be the place 
In Tony Scott’s Top Gun, 
when the actor alit from his 
fighter jet clad in Air Force 
leathers an...
This must be the place 
SST study showed, for product placement to work, it has to be a 
lot slyer and more sophisticated ...
Over 1 Million views 
from more than 100 countries 
Prof. Sameer 
Mathur 
Top 1% most viewed 
Over 250 presentations on 
M...
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Product placements, American idol, Ford's Multi Million Dollar Mistake (from Buyology by Martin Lindstrom)

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Product placements, American idol, Ford's Multi Million Dollar Mistake (from Buyology by Martin Lindstrom)

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Product placements, American idol, Ford's Multi Million Dollar Mistake (from Buyology by Martin Lindstrom)

  1. 1. This Must Be The Place– Product Placements, American Idol and Ford’s Multimillion-Dollar Mistake 1
  2. 2. Source: 2
  3. 3. Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 3
  4. 4. “ Neuromarketing is it’s about uncovering what’s already inside our heads —our Buyology” Martin Lindstrom - Buyology 4
  5. 5. In 1965 a typical consumers had a 34% recall for ads, in 1990 that figure had fallen to 8% The relentless advertising assault have resulted in strengthening the filter system in our brains grow thick and self protective This must be the place 19
  6. 6. This must be the place
  7. 7. To identify whether the product placement in the show American Idol helps in creating a lasting impact in the consumer’s minds and hence translate into sales of the company’s product 7 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment - Objective
  8. 8. American Idol has three main sponsors – Cingular Wireless, Ford Motor Company & Coca-Cola Cingular Wireless – Runs 30 seconds ads during the commercial breaks & also features its products prominently during the show Coca-Cola: It has judges drink strategically placed Coke, the judges’ chairs are shaped like coke’s bottle, the walls are coke-red. Coca Cola is present approximately 60% of the time on American Idol Ford: Doesn’t shares actual stage with the contestants & it shells out $26 million only toward traditional thirty seconds ad spots. 8 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Sponsors
  9. 9. 9 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Sponsors
  10. 10. Four hundred subjects were chosen to go through the SST test that mathematically measures the brain waves in real time The subjects were seated in the darkened room Twenty product logos (branded & unbranded) were shown, one each/second “Branded Logos”: Logos of companies that aired their commercials during American Idol – Coke, Ford & Cingular “Unbranded Logos”: Logos of companies that had no products placed within the show i.e. no connection or sponsorship with American Idol like Fanta, Verizon, Target, etc. 10 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Setup
  11. 11. The subjects were shown 2 shows, one was a 20 min special edition of American Idol followed by a screening of another show Rescreened the same sequence of logo thrice. It was done to test whether viewers remembered which logos they had seen during the show and which ones they hadn’t Ad Effectiveness: measured by the consumer’s memory of the product. A remembered product has more probability of being purchased 11 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Setup
  12. 12. Before-Screening: No matter how frequently the products were featured during the show, the memory of branded logos was the same as that of the unbranded logos. Therefore, before the study began, both branded and unbranded logos were at par Post- Screening: Branded logos had a greater recall than unbranded logos. The potency of branded logos had inhibited the recall of unbranded logos i.e. memory of Coke, Cingular had crowded out memories of Pepsi, Verizon Coke was far more memorable than Cingular which was far more memorable than Ford 12 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Results
  13. 13. Coke had permeated 60% of the show – Soft drink cups – Furniture- Décor. Coke reinforced throughout the show There was no memory of the brands that did not played an integral part in the story line of the show Coke played an integral part of the show – was remembered the most and at the same time weakened the memory of other brands Ford just played ads in commercial breaks – no significant difference than “just other ads” 13 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Analysis
  14. 14. Coke saturated show had suppressed memory of Ford commercials Ford had invested $ 26 million in yearly sponsorship but – lost market share 14 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – Ford’s Multimillion-Dollar Mistake
  15. 15. Mid 1940s Warner Bros. movie had General Electric refrigerator or a love story with diamonds from DeBeers Co. E.T. Extra Terrestrial had tactically placed Hershey's candies Ray-Ban: Suffered from slowing sales, tied up with the movie Risky Business where Tom Cruise flaunted Ray-Ban sunglasses. Sales increased by over 50%. Again in Top Gun, sales rose by 40% But movies like Die Another Day that displayed 23 brands in 123 minutes or Driven that displayed 103 brands in 117 minutes – all the brands made no effect 15 Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The product has to be a good match with the TV show or movie
  16. 16. This must be the place Product Placement in Movies
  17. 17. This must be the place In Steven Spielberg’s E.T.: The Extra- Terrestrial, a boy named Elliott discovers an extraordinary-looking creature living in the woods behind his house. To lure it out of hiding, the boy tactically places individual pieces of candy—instantly recognizable as Hershey’s Reese’s Pieces—along the path from the forest leading into his house
  18. 18. This must be the place
  19. 19. This must be the place In the late 1970s and early ’80s, the U.S.-based sunglasses manufacturer Ray-Ban was fighting to stay alive as their sales figures remained dismally flat. That is, until the company struck a deal with Paul Brickman, the director of 1983’s Risky Business, and Tom Cruise gave the retro-looking shades a whole lot of renewed cachet. When the movie became a hit, Ray-Ban sales rose by over 50 percent.
  20. 20. This must be the place In Tony Scott’s Top Gun, when the actor alit from his fighter jet clad in Air Force leathers and Aviator Ray- Bans, the sunglasses maker saw an additional boost of 40 percent to its bottom line
  21. 21. This must be the place SST study showed, for product placement to work, it has to be a lot slyer and more sophisticated than simply plunking a series of random products on a screen and expecting us to respond. E.T.: Elliott didn’t just pop those Reese’s Pieces into his mouth during a thoughtless bike ride with his buddies; they were an essential part of the storyline because they were used to lure E.T. from hiding. The product has to make sense within the show’s narrative. So if a product isn’t a good match with the movie or TV show in which it appears viewers will tune it right out
  22. 22. Over 1 Million views from more than 100 countries Prof. Sameer Mathur Top 1% most viewed Over 250 presentations on Marketing www.BuddingMarkets.com

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