Product placement is a
form of advertising and
promotion in which
products are placed in
television shows and or
movies to gain
exposure.
A Coca Cola product placement on the space
shuttle is a form of space advertising

• When the featured product is not part of an
economic exchange, it is called a product plug
• It is not always the product that is placed in the
media, you can also find advertisements for the
products placed in the media

• Lumiere Brothers
• Early examples
• Most popular products
• Increasing product placement & TiVo

1. Exposure & frequency
2. Support of other media
3. Source association
4. Low CPM
5. Recall
6. Bypassing regulations
7. Acceptance
8. Targeting

1. High absolute cost 5. Public reaction
2. Time of exposure 6. Competition
3. Limited approach 7. Negative
4. Lack of control placements
8. Clutter

• Controls not as strict as
television commercials
• Companies engaging in
product placement must be
stated in end credits
• Cigarettes and alcohol

• Stealth advertising a.k.a. “undercover marketing”
• Examples:
– Sony Camera
– Türi Vodka

• When filmmakers create false products that frequently
appear in the movies they make
• Also common in comic books, television, and “reality-
based” video games
Pixar Animation pizza place
“GTA” video game series Quentin Tarantino films

• To create a fictional brand in a fictional environment and
then release it into the real world
“Vote for Pedro” t-shirts from “Forrest Gump’s” fictional brand now
Napoleon Dynamite a restaurant chain

Movies
Television
Books
Video Games
Songs

Can you recall some of these famous product placements?
• Risky Business – Ray-Ban sunglasses
• Back to the Future – Pepsi products, the DeLorean
• Demolition Man – Taco Bell
• You’ve Got Mail – AOL, Apple, IBM and Starbucks
• Austin Powers – Pepsi and Starbucks
• Cast Away – FedEx and Wilson
• Men In Black II – Ray-Ban sunglasses, Mercedes Benz, Sprint, Burger King

“Have you ever wondered how an actor can
hold the Coke can just the right way every
time so that the logo is perfectly visible?”

Here are some more recent movies that
contain many product placements:

1985 2004

Apple laptop computer on “24” Perhaps the producers of "24" did not
find a phone company that wanted to
sponsor this episode

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Here are just a few examples of what you can find in
your local library or bookstore:
Skittles Riddles Math
The Cheerios Counting Book
The Hershey’s Kisses Addition Book
The M&M’s Brand Counting Book
The Crayon Counting Book
Reese’s Pieces: Count By Fives

“Crazy Taxi” KFC
“Crazy Taxi” Pizza Hut

Product Placement in Music Videos
“Take Me Out to the Ball Game”
“…buy me some peanuts and Cracker Jack”

• Product placement has become big business. The amount of money spent
on product placement increased from $190 million in 1974 to $3.458 billion
in 2004.5 From 1999 to 2004, the overall product placement market grew at
a compound annual rate of 16.3%. Product placement spending in 2005 is
expected to increase 22.7%, to a total of $4.24 billion.
• M&M/Mars was first asked to place their M&M’s product in the movie, E.T.,
but turned it down. Reese’s Pieces then made the debut and their sales
increased 65% due to the exposure.

http://www.youtube.com/watch?v=bLeXUC8pSdk
http://www.youtube.com/watch?v=nQbVD5hlddk
http://www.youtube.com/watch?v=wo2nEMjchq8
http://www.youtube.com/watch?v=Fb12uXbH5mo
http://advertising.about.com/od/promotions/a/prodplacegames.htm
http://www.jsonline.com/story/index.aspx?id=305598
http://en.wikipedia.org/wiki/Product_placement
http://money.howstuffworks.com/product-placement.htm
http://www.marketingpower.com/content19350.php
Advertising & Promotion Textbook

The End