Uploaded byBoris Jovic
Product Placement
Product placement is a form of advertising where brands pay to have their products featured in movies, TV shows, and other media. It allows brands to raise awareness subtly without traditional commercial interruptions. There are two main types - prominent placements with logos clearly visible and subtle background placements. Success is measured by increased sales following a movie's release. Famous examples include Reese's Pieces in E.T. and BMW cars in James Bond films. Marketers are increasingly integrating brands directly into scripts. Movies also rely more on brand funding due to higher production budgets.
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Product Placement
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- 3. DEFINITION Product placement isa way of promoting a company or a product by using movies and other types of media to advertise the product or company “any form of audio-visual commercial communication consisting of the inclusion of or reference to a product, a service or the trade mark thereof so that it is featured within a programme, in return for payment or for similar consideration” - US Government
- 4. AGENDA History and Overview SuccessfulCampaigns When Brands make it too obvious City Branding Trends and Forecasts
- 7. 2014 PRODUCT PLACEMENT 13.6% yearover year $73.27 billion branded entertainment $10.58 billion product placement
- 8. TYPES VISUAL SPOKEN PLOT Observedfor a few minutes or seconds Mentioned during the movie Viewers can process it easier When product is interacted with in the movie
- 9. Exposure Frequency Source Association Recall Bypassing Regulation Targeting ADVANTAG ES RISK S Timeof exposure Limited appeal Lack of control Public reaction Competition Negative placement
- 10. MEASURING SUCCESS There isnot one way to measure the effects of Product Placement in movies The measuring of the effect of product placement can be done by: making quantitative and qualitative interviews through questionnaires about a company before and after a product placement (brand value/image measuring) comparing sales revenues some months before and after the release of the movie By doing this, it is possible to evaluate if product placement has been successful even though the movie didn’t get good ratings or vice versa.
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- 13. TIMELINE 1900 1950 1980 2000 The Lumière brothers launchedtheir invention on the market and in doing this, unknowingly, gave life to the first case of film product placement. In the movie "La sortie des usines Lumière" their factory is in the background as set for the exit of the wardens. Only starting from the early 1950s, the phenomenon of Product Placement began to be conscious usage tool. In the movie “The African Queen” (1951) Humphrey Bogart and Katherine Hepburn are caught with a bottle of Gordon's Gin. Many believe that it is impossible to speak of true Product Placement before the case of Reeses Pieces candy in Steven Spielberg's movie "E.T.""extraterrestrial (1982) The placement of Hershey’s Reese's Pieces caused the sales of the candy to grow by Because of drop in ticket sales prices and over- the-top film budgets, movie executives began to rely on product placement as a way to support the struggling film budgets Source: PwC
- 14. 1982 RELEASE YEAR 1978INTRO OF REESE’S PIECES 65% INCREASE IN PROFITS IN 3 MONTH
- 16. CONCEPTS ADDRESSED Consumers rejectionof interruption marketing Brands need ways to raise awareness Is there value in the trade-off for content? Branding success - how do we measure consumer reception to product placement?
- 17. Broadcasters, traditional adagencies and media distributors, in particular, will need to make strategic, operating and organizational changes now to succeed in a world with more fragmented communication channels and new media interaction and consumption habits
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- 19. EFFECTIVENESS While watching afilm the audience’s guard is down Therefore, the product placement advertising is an excellent way to put a product in the back of consumers mind without the consumer feeling ambushed by advertising messages
- 20. EFFECTIVENESS TYPES PROMINENT How visiblethat product is (logo or other recognizable trait unique to it) High plot integration, repeated mentions, and long screen time duration SUBTLE Used by an “extra” – IMPLICIT Time on screen: less than 5 seconds
- 21. PROMINENT Prominence refers to“the extent to which the product placement possesses characteristics designed to make it a central focus of audience attention” Main Character Integration – EXPLICIT Time on screen: more than 5 seconds
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- 24. How do thetwo different types of product placement influence the consumers’ mind in the three aforementioned ways?
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- 32. 22% INCREASE INSALES FOR BMW BMW PROVIDED 30 CARS FOR THE FILM
- 34. 1983 RELEASE YEAR 360,000PAIRS SOLD AS A RESULT
- 36. 1986 RELEASE YEAR 40%SALES INCREASE
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- 43. $160M IN PROMOTIONS| $225M BUDGET 100+| | | |
- 44. CITY BRANDING INFILM
- 48. ÇANAKKALE, TURKEY |73% TOURISM INCREAS
- 61. Marketers are becomingsavvier at integrating products into films Script integrations are a key driver for TV Show placement Movies are funded by brands TRENDS AND FORECASTS
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Editor's Notes
- #3 Laura & Bebe & Flavia
- #9 Visual the product, service, or logo can simply be observed for a few moments or seconds Spoken the product, service, or corporation is mentioned during the movie. This has a greater effect than visual placement on viewers, because they can process the information even when they are not looking at the movie screen Plot when an on-screen personality interacts or handles the product or service. a usage placement often involves also a visual and spoken element
- #12 Laura & Bebe & Flavia
- #13 Visual and Spoken example
- #15 Unknown Brands The rumor is that Mars, Inc., just didn't think this was a worthwhile movie on which to spend their advertising dollars, but no one has ever substantiated that fact. Whatever the reason is, it was a big mistake—Mars' competitor, Hershey, snapped up the opportunity to promote Reese's Pieces. Hershey agreed to spend $1 million promoting E.T. in exchange for the rights to use E.T. in its ads. The payoff was huge—the delightful little peanut butter candies saw a reported 65% jump in profits just three months after the movie's premiere.
- #16 Even after 30 years, Reese’s Pieces is using the success of the product placement in ET to market its product.
- #19 Sam
- #24 Brand awareness (learning and recalling) Audience attitudes (positive/negative) Cognitive responses (i.e. behavioral inclinations such as: purchase intentions)
- #29 Established brands
- #45 Does anyone know where Bruges is?
- #46 If you've seen this movie, did you know about Bruges before? Colin Farrell and Ralph Fiennes (Voldermort for all you Harry Potter fans) starred in this movie. If you haven't seen it and enjoy some dark comedy, it's highly recommended. One thing about city branding in films is that the city becomes used in the plot, the third type of product placement if you recall Sam's description.
- #47 When the city is a major plot point in the film, it will typically start with the opening credits being about the city. PLAY CLIP You'll notice there is no speaking, there is only images of the city. The opening titles are meant to set the tone for the film - dark, dreary, mysterious - but is shows very beautiful pictures of the city. If you end up watching the film, you will fall in love with Bruges. It's gothic and beautiful. As a result of the film's release, tourism in Bruges spiked, as well as tourism in Belgium in general following the 2008 release.
- #48 The fantastical take on India in 2012’s “Life of Pi” made India’s Ministry of Tourism to build an entire “Land of Pi” tourism campaign. “We will be promoting the locations where the movie was shot,” an Indian tourism official told CNN Travel. Hotels and other tourist boards in India have done the same and began posting a website listing iconic hotels that have played famous roles in movies throughout the years. Many of the company's hotels have experienced increased business following the release of a film in which the property was featured.
- #49 After a horse sculpture used in Brad Pitt’s historical blockbuster “Troy” was brought to the northwestern province of Çanakkale SLIDE the number of tourists visiting the site increased by 73 percent.
- #50 We have very famous examples like Jurassic Park, which was filmed in Hawaii. Following the release, tourism to Hawaii increased significantly.
- #51 Of course, we can't forget about one of the most beautiful and scenic countries in the world, Italy. The Tourist with Johnny Depp and Angelina Jolie is set in Venice, and the film relies heavily on scenes set in some famous Venetian locales.
- #52 The film Jack Fruiscante features Bologna. Being a small scale film, there was still an impact on tourism to the city.
- #53 Famous movies such as La Dolce Vita directly impacted tourism to Rome in the 1950's and 1960's. During that period we saw many films, especially Hollywood films, begin using Rome as a setting.
- #54 Roman Holiday starring Audrey Hepburn and Gregory Peck contributed to the city's rise in tourism. The producers were smart to use Rome as a backdrop. Following the war, many American tourists did not wish to go to Europe, so these movies showed European cities in a favorable light. You'll notice on the city poster a Vespa, a typical, stereotypical representation of the Italian motorist. There is also a map of Rome showing the many activities one can do.
- #55 This is a great scene when Audrey Hepburn's character escapes on a Vespa and rides through the streets of Rome. PLAY CLIP You have to take a small break at a café if you're in Italy, naturally. SLIDE
- #56 Contemporary films like The Great Beauty has recently impacted tourism in Rome as well.
- #57 And smaller cities such as Verona have also been impacted positively by branding in films with movie such as Letters to Juliet.
- #58 Woody Allen is notorious for using cities as a plot device, and every single movie he makes with a city as the setting contributes directly to a city's branding or impacts the city positivley in some way. For example, Woody Allen Movies such as “Manhattan” and “Annie Hall” led to a rise in real estate in New York City. Woody Allen’s movies are appealing to people because they are shot from the perspective of tourists, and they give the audience a glimpse into the beauty of the city through their eyes. Tour guides discuss “Vicky Cristina Barcelona” with their tourist groups, which leads to requests for private tours that adhere to a strict “Vicky Cristina Barcelona” itinerary. The movie is a tour. If you watch this movie, you’re having a tour through Barcelona. It’s a great advertisement for the city.
- #59 One of the opening shots in “To Rome With Love” shows American tourist Hayley (Alison Pill) staring perplexedly at a tourist map in a Roman plaza. She’s saved by local Adonis Michelangelo (Flavio Parente), who quickly becomes her fiance. Now that’s a vacation.
- #60 The demand for “Midnight in Paris” tours is so high that tour guide companies offer only “Midnight in Paris” tours. The tour was the most popular package for a brief time after the movie’s release, in the summer of 2011. Today it consistently ranks in the top two or three today, 5 years after the movies release.
- #61 PLAY CLIP Now, this opening sequence lasts 4 minutes, and it is simply music with videos of Paris. It's a postcard. I've done you all a favour and sped it up, but if you watch the film you will notice many famous Parisian monuments and attractions used as a setting. Because of the movies and the way the city is portrayed, tourists who have never visited the city before feel a connection to it almost immediately. Tour guide have noted that Woody Allen movies, especially Midnight in Paris, have contributed directly to the city’s image, and as a result, to demand for the tour guide companies.
- #62 SLIDE So what can we predict for the future of Product Placement? It's here to stay. While TV remains America's most consumed medium, viewing of first-run programs is declining in favor of time-shifted video, often to avoid traditional 30-second ads. As a result, product placement has strengthened its position in the multimedia campaign mix. In addition, US marketers have become savvier about integrating brands and products into program content instead of settling for less expensive brand or product cameos. Brands and companies will continue to fund movies. In many instances, movie studios are not willing to invest money into a movie because they are unsure how it will be received and how much money it will make back for them. The example of Man of Steel is a perfect one because past Superman films did not perform well. So a studio used $160 million of companies money in exchange for product placement, and funded the movie this way. This practice is common and will continue to be so. The audience will benefit because interruption will not be overt like in traditional advertising. And movie studios benefit from an increased budget and the ability to make more movies.
- #63 SLIDE PLAY END CLIP And that is it for Product Placement in Movies. On behalf of our group, thank you.