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TRENDS IN          PRODUCT          PLACEMENT           Hyper-reality, or commercial pollution?          Grant Spanier    ...
AGENDA            1. Research Purpose            2. Advertising Background            3. Product Placement            4. R...
PURPOSE        Study the value, effects and future        of product placement.        Focused exclusively on millennial...
PURPOSE       Answer these:       How does product placement function?       How effective is it?        How bothersome is...
PURPOSE       Hyper-reality, or       commercial pollution?Undergraduate Media Conference | 04/20/12
WHAT IS IT?              -     Embedded Advertising              -     Story Alteration              -     Product Integra...
WHAT IS IT?Undergraduate Media Conference | 04/20/12
WHAT IS IT?                                             E.T.Undergraduate Media Conference | 04/20/12
WHAT IS IT?             65%                            SALES INCREASEUndergraduate Media Conference | 04/20/12
BACKGROUND           Most instances of Product Placement:             The Biggest Loser – 6,248             American Idol ...
BACKGROUND               $3.1 billion in 2006               $7.6 billion in 2010                 1
               More tha...
WHY THE           INCREASE?Undergraduate Media Conference | 04/20/12
WHY THE           INCREASE?          Death of the 30 second spot:Undergraduate Media Conference | 04/20/12
WHY THE           INCREASE?          Death of the 30 second spot:           Snowball effect—ads, ads, ads           More...
WHY THE           INCREASE?          Death of the 30 second spot:           DVR / skipping commercials           Social ...
WHY THE           INCREASE?          Death of the 30 second spot:           DVR / skipping commercials           Social ...
ADVERTISING       IS CHANGING.Undergraduate Media Conference | 04/20/12
ADVERTISING       IS CHANGING.       CHANGED.Undergraduate Media Conference | 04/20/12
CHANGING        BEHAVIOR       CHANGES       MEDIA.Undergraduate Media Conference | 04/20/12
CHANGING        BEHAVIOR       CHANGES       ADVERTISING.Undergraduate Media Conference | 04/20/12
PRODUCT           PLACEMENT           Effective advertising.            Additional revenue generator.           “DVR proof...
PRODUCT           PLACEMENT           More advertising messages.           Ruins integrity of creative work.           “Se...
REASEARCH           METHOD           Anonymous 12-question survey           100 respondents           All between 18 & ...
RESULTS | Media Consumption                             17.7
                                                    6.5
     ...
RESULTS | Brand Awareness | TV                             17.7
 71%
                                                    2...
RESULTS | Brand Awareness | Film                             17.7
 71%
                                   73%
            ...
WHAT DOES       THIS MEAN?       THEY KNOW IT’S       THERE.Undergraduate Media Conference | 04/20/12
BUT HOW DO       THEY FEEL       ABOUT IT?Undergraduate Media Conference | 04/20/12
BUT HOW DO       THEY FEEL       ABOUT IT?       NOT SO BAD.Undergraduate Media Conference | 04/20/12
RESULTS | Program Disruption | TV                              72%
                             17.7
 71%
                ...
RESULTS | Program Disruption | FILM                               76%
                             17.7
 71%
             ...
SO, WHAT       WOULD THE        RESPONDENTS        PREFER?Undergraduate Media Conference | 04/20/12
A. LESS COMMERCIALS,           MORE PP.            B. MORE COMMERCIALS,           LESS PP.           C. NO CHANGEUndergrad...
RESULTS | Alternative System                             17.7
 71%
                             76%
 73%
                 ...
UNFORTUNATELY,       THAT’S NOT        GOING TO       HAPPEN. Undergraduate Media Conference | 04/20/12
PRODUCT       PLACEMENT IS       OKAY. Undergraduate Media Conference | 04/20/12
PRODUCT       PLACEMENT IS       OKAY.       USUALLY.Undergraduate Media Conference | 04/20/12
A PREFERRED,       LESS-INTRUSIVE       FORM OF       ADVERTISING.Undergraduate Media Conference | 04/20/12
BRANDS THAT       GET PLACEMENT       RIGHT CAN RULE       THE SPACE.Undergraduate Media Conference | 04/20/12
IF IT BENEFITS       THE SHOW,        THE BRAND WILL       BENEFIT.Undergraduate Media Conference | 04/20/12
IF IT BENEFITS       THE AUDIENCE,       THE BRAND WILL       BENEFIT.Undergraduate Media Conference | 04/20/12
IF IT BENEFITS       THE AUDIENCE,       WE ALL WIN.Undergraduate Media Conference | 04/20/12
THANK YOU!           Grant Spanier           grantspanier.com           grantspanier@gmail.com           @grantspanier    ...
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Trends in Product Placement: Hyper-reality or commercial pollution?

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  1. 1. TRENDS IN PRODUCT PLACEMENT Hyper-reality, or commercial pollution? Grant Spanier University of St. ThomasUndergraduate Media Conference | 04/20/12
  2. 2. AGENDA 1. Research Purpose 2. Advertising Background 3. Product Placement 4. ResearchUndergraduate Media Conference | 04/20/12
  3. 3. PURPOSE  Study the value, effects and future of product placement.  Focused exclusively on millennials (18-29)  Designed to understand millennial opinions on product placement. Undergraduate Media Conference | 04/20/12
  4. 4. PURPOSE Answer these: How does product placement function? How effective is it? How bothersome is it to viewers? Is it morally objectionable? Undergraduate Media Conference | 04/20/12
  5. 5. PURPOSE Hyper-reality, or commercial pollution?Undergraduate Media Conference | 04/20/12
  6. 6. WHAT IS IT? -  Embedded Advertising -  Story Alteration -  Product Integration -  Booming Industry -  Marketing Solution -  Unavoidable Movies Television (offline/online) Music VideosUndergraduate Media Conference | 04/20/12
  7. 7. WHAT IS IT?Undergraduate Media Conference | 04/20/12
  8. 8. WHAT IS IT? E.T.Undergraduate Media Conference | 04/20/12
  9. 9. WHAT IS IT? 65% SALES INCREASEUndergraduate Media Conference | 04/20/12
  10. 10. BACKGROUND Most instances of Product Placement: The Biggest Loser – 6,248 American Idol – 4,636 Extreme Makeover: Home Edition – 3,371 Americas Toughest Jobs – 2,807 One Tree Hill – 2,575 Deal or No Deal – 2,292 Americas Next Top Model – 2,241 Last Comic Standing – 1,993 Kitchen Nightmares – 1,853 Hells Kitchen – 1,807 $60 million + 1
 1
 h"p://www.mediapost.com/publica4ons/ar4cle/120680/
Undergraduate Media Conference | 04/20/12
  11. 11. BACKGROUND $3.1 billion in 2006 $7.6 billion in 2010 1
 More than doubled in less than 5 years.Undergraduate Media Conference | 04/20/12
  12. 12. WHY THE INCREASE?Undergraduate Media Conference | 04/20/12
  13. 13. WHY THE INCREASE? Death of the 30 second spot:Undergraduate Media Conference | 04/20/12
  14. 14. WHY THE INCREASE? Death of the 30 second spot:  Snowball effect—ads, ads, ads  More media channels—more messages  Conditioned generationUndergraduate Media Conference | 04/20/12
  15. 15. WHY THE INCREASE? Death of the 30 second spot:  DVR / skipping commercials  Social Media  Multi-screen viewing habits 66%Undergraduate Media Conference | 04/20/12
  16. 16. WHY THE INCREASE? Death of the 30 second spot:  DVR / skipping commercials  Social Media  Multi-screen viewing habits 66%  Solution = Product Placement Undergraduate Media Conference | 04/20/12
  17. 17. ADVERTISING IS CHANGING.Undergraduate Media Conference | 04/20/12
  18. 18. ADVERTISING IS CHANGING. CHANGED.Undergraduate Media Conference | 04/20/12
  19. 19. CHANGING BEHAVIOR CHANGES MEDIA.Undergraduate Media Conference | 04/20/12
  20. 20. CHANGING BEHAVIOR CHANGES ADVERTISING.Undergraduate Media Conference | 04/20/12
  21. 21. PRODUCT PLACEMENT Effective advertising. Additional revenue generator. “DVR proof.” Pros Lower production costs. More realistic.Undergraduate Media Conference | 04/20/12
  22. 22. PRODUCT PLACEMENT More advertising messages. Ruins integrity of creative work. “Secret advertising.” ConsUndergraduate Media Conference | 04/20/12
  23. 23. REASEARCH METHOD  Anonymous 12-question survey  100 respondents  All between 18 & 29 years oldUndergraduate Media Conference | 04/20/12
  24. 24. RESULTS | Media Consumption 17.7
 6.5
 4.2
Undergraduate Media Conference | 04/20/12
  25. 25. RESULTS | Brand Awareness | TV 17.7
 71%
 29%
 6.5
 4.2
Undergraduate Media Conference | 04/20/12
  26. 26. RESULTS | Brand Awareness | Film 17.7
 71%
 73%
 29%
 27%
 6.5
 4.2
Undergraduate Media Conference | 04/20/12
  27. 27. WHAT DOES THIS MEAN? THEY KNOW IT’S THERE.Undergraduate Media Conference | 04/20/12
  28. 28. BUT HOW DO THEY FEEL ABOUT IT?Undergraduate Media Conference | 04/20/12
  29. 29. BUT HOW DO THEY FEEL ABOUT IT? NOT SO BAD.Undergraduate Media Conference | 04/20/12
  30. 30. RESULTS | Program Disruption | TV 72%
 17.7
 71%
 73%
 53%
 47%
 29%
 27%
 28%
 6.5
 4.2
Undergraduate Media Conference | 04/20/12
  31. 31. RESULTS | Program Disruption | FILM 76%
 17.7
 71%
 73%
 57%
 29%
 27%
 43%
 24%
 6.5
 4.2
Undergraduate Media Conference | 04/20/12
  32. 32. SO, WHAT WOULD THE RESPONDENTS PREFER?Undergraduate Media Conference | 04/20/12
  33. 33. A. LESS COMMERCIALS, MORE PP. B. MORE COMMERCIALS, LESS PP. C. NO CHANGEUndergraduate Media Conference | 04/20/12
  34. 34. RESULTS | Alternative System 17.7
 71%
 76%
 73%
 29%
 27%
 6.5
 6%
 4.2
 18%
Undergraduate Media Conference | 04/20/12
  35. 35. UNFORTUNATELY, THAT’S NOT GOING TO HAPPEN. Undergraduate Media Conference | 04/20/12
  36. 36. PRODUCT PLACEMENT IS OKAY. Undergraduate Media Conference | 04/20/12
  37. 37. PRODUCT PLACEMENT IS OKAY. USUALLY.Undergraduate Media Conference | 04/20/12
  38. 38. A PREFERRED, LESS-INTRUSIVE FORM OF ADVERTISING.Undergraduate Media Conference | 04/20/12
  39. 39. BRANDS THAT GET PLACEMENT RIGHT CAN RULE THE SPACE.Undergraduate Media Conference | 04/20/12
  40. 40. IF IT BENEFITS THE SHOW, THE BRAND WILL BENEFIT.Undergraduate Media Conference | 04/20/12
  41. 41. IF IT BENEFITS THE AUDIENCE, THE BRAND WILL BENEFIT.Undergraduate Media Conference | 04/20/12
  42. 42. IF IT BENEFITS THE AUDIENCE, WE ALL WIN.Undergraduate Media Conference | 04/20/12
  43. 43. THANK YOU! Grant Spanier grantspanier.com grantspanier@gmail.com @grantspanier Presentation can be found online: slideshare.com/grantspanierUndergraduate Media Conference | 04/20/12
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