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Doing The Deal in Branded Entertainment | Patrick Collings 2010


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This is one of two presentations I gave at the branded entertainment conference in Johannesburg on 24 March 2010. This particular presentation focuses on structuring branded entertainment deals, primarily the insertion of brands into film or television scripts. Many of the points are applicable to other forms of branded entertainment and branded content. I have gone with more text in this presentation than I normally do so it should be fairly easy to follow. A good deal of the content within the presentation is taken from Jean-Marc Lehu’s book Branded Entertainment which I believe is the best book on branded entertainment to date.

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Doing The Deal in Branded Entertainment | Patrick Collings 2010

  1. 1. doing the deal patrick collings sagacite branded entertainment conference johannesburg march 2010
  2. 2. the right content the right association the right price the right deal
  3. 3. much of upcoming focus on insertion of brands into entertainment projects taken from the view of the brand, but applicable to many aspects of branded entertainment and content
  4. 4. the right content image by stephen poff
  5. 5. 3As
  6. 6. appropriate
  7. 7. authentic
  8. 8. alignment
  9. 9. the right association image by stephen poff
  10. 10. the objective of branded entertainment or branded content is to associate a brand with an entity or a situation thereby creating favourable brand awareness and understanding
  11. 11. that association can be through a logo, mention of brand name, the product or its packaging or a combination
  12. 12. association can be achieved with four traditional types of brand placement
  13. 13. classic placement the product appears in the camera’s view during filming. relatively easy and cheap to execute but may go unnoticed or be easily discarded.
  14. 14. brand placement brand over the product may result in better longevity, easier insertion and benefits brand portfolio. however, requires viewer awareness of brand.
  15. 15. evocative placement not for all. product must be original and design distinctive enough to be instantly recognizable. benefits from careful integration into script.
  16. 16. stealth placement highly discreet, almost undetectable and mostly well integrated into a scene given it a powerful impact when identified. nod to those in the know but easiest to be missed.
  17. 17. “Abnormal returns associated with product placement in successful films are enhanced by tie-in advertising campaigns and when the placement is for a high equity brand. Product placement worth is also enhanced by the film’s audience size and when the product receives (a visual and audio) placement.” Michael A Wiles & Anna Danielova
  18. 18. however, value of placement is reduced when
  19. 19. audiences are absorbed in the film when the film is critically acclaimed when there is extremely violent content the more other brand placements are included
  20. 20. 3 other types of placements
  21. 21. virtual placement
  22. 22. reverse placement
  23. 23. product displacement
  24. 24. the right price image by stephen poff
  25. 25. the anxiety question image by luna di rimmel
  26. 26. Ford pay between $30m and $40m to place Aston Martin in Die Another Day California Raisin Board pay $25,000 to appear in Back to the Future France Télécom pay $610,000 for telephone call in La Bella Historie Clairol pats $10,000 to have products appear in Smile 1975 1985 1992 2002 Cost of Product Placement
  27. 27. $0 well close to that
  28. 28. R40,000 to be exclusive wine in one of 13 episodes of cooking show that will be aired on BBC Lifestyle
  29. 29. distortion
  30. 30. factors that can influence the cost of a placement
  31. 31. The more famous the brand, the more likely the recognition and derived benefit and therefore a Brand’s fame higher placement fee than a relatively unknown brand Identification The more the brand is identified the higher the of brand placement cost The bigger the budget the more expensive the The film’s placement is likely to be to mitigate risk of the budget project. Often emphasis on promotional spend
  32. 32. Type and Small, independent and “arty” productions can not genre of the expect to charge the same fee as international, mainstream production film Those The more famous the actors, director and producer involved in the and the better their individual and collective track record, the more a brand can expect to pay project In many cases the cost of supplying the product The barter constitutes the cost of the placement, but not as deal cheap as one may think
  33. 33. The more prominent the placement in terms of Seeing the screen space and time, the more the brand is going placement to pay Integration Integration beats appearance, therefore integration into the story carries a premium over appearance It gets used by If a brand gets used or mentioned by a principal actor then expect to pay for that. And you may have those that to pay the actor as well, especially if that association matter is used in additional marketing material
  34. 34. Too many brands dissipate the viewer’s attention, Exclusivity for but exclusivity costs and your competitors want it the brand just as badly Placement in scenes that are shown in addition to Recurring the entertainment piece, such as trailers or websites, placements can expect to pay more The more people that potentially can see the film or How widely show, the more the brand will pay to be inside the distributed film or show. Also consider secondary distribution.
  35. 35. Placement cost goes down if promotional cost goes Accompanying up, but in the end the costs must be tallied. Also communication need to consider who is benefiting more. Don’t forget the The ability to merchandize the involvement or even tie-ins implement reverse placement The cost of Need to factor in additional fees such as legal and getting the deal agent’s commission
  36. 36. lot of common sense, but no single formula
  37. 37. the right deal
  38. 38. things to remember for those boardroom negotiations image by nur hussein
  39. 39. Is the subject and story line compatiable with the Subject and brand’s past, present and future? Is it in line with the story line brand’s values? Context is important. Remember to state that script change can nullify the agreement Similar to the previous point, but deserves own Is it authentic emphasis: is the brand’s inclusion authentic? Tramps don’t normally wear Cartier watches Take into the consideration the studio’s previous What has gone handling of product placement. Is your brand before getting a worse, similar or better deal to what has gone before?
  40. 40. What is their attitude towards brand placement. Are Know the they willing participants or are they being forced to director incorporate your brand. Who has the Is it the producer or the director? What is the brand’s final say ability to influence or demand compliance. Actors Which actors will be associated with the brand and in what context. Remember that actors have their own associated brand equity beyond the success or failure of the with the brand project
  41. 41. Is the brand placement compatiable with the actor’s Contractual contractual obligations away from the film. compatibility Authenticity suffers when the brand fails to go home with the actor. Where Try and secure as much as possible in the contract. possible, write Difficult for placement of product but relevant extract from script can be written into contract it in Don’t lose control of the brand just because it is on a Try stay film set. If possible make sure there is someone to involved advise on the placement
  42. 42. Get yourself in Being thanked in the credits makes the brand the credits association look less like brand marketing Try leave Expect to pay something upfront, but it is preferable payment until for the balance of payment to coincide with the end of shooting or, better still, the release date the end Clearly state that the rights attached to the brand in Protect the question remain the property of the brand. Restrict brand usage to terms of the contract
  43. 43. Consider all tie-ins, public relations, supporting Look ahead & advertising campaigns before you draft and sign the anticipate contract. Know when Understand when the film will be released and that things will products placed are still valid. Is the brand protected by delays? happen Precise conditions of a placement deal are rarely Don’t tell disclosed because nothing undermines authenticity anyone as much as an accompanying price tag
  44. 44. that’s a wrap
  45. 45. patrick collings sagacite e: m: +27 (0)83 616 0967 w: b: t: pjcollings (follow me on twitter)