Product Placement
Transcription
Product Placement
Product Placement in TV soaps, films and video games, is it the future of advertising? Abstract: The purpose of this report is to discuss the various methods of Product Placement, the different methods used to showcase Product Placement, their advantages and disadvantages and look at the future of Product Placement. Also the results of our own empirical research and comparisons of our findings with previous research will be looked at and from this conclusions and recommendations will be drawn. Table of Contents : 0-0 Introduction! ! ! ! ! 02 ! 1-0 The History of Product Placement 02 2-0 Types of Product Placement 07 3-0 The Cost of Product Placement 11 4-0 13 Advantages and Disadvantages of Product Placement 5-0 The future of Product Placement 16 6-0 Results 18 7-0 Discussion 22 8-0 References 24 9-0 Appendix 26 ! Product Placement! -1- 1! ! Aladdin Kishk & Colette Keely 0 - 0 Introduction As the consumer market has becoming more fragmented, marketers in recent decade turned to a variety of communication channels in their efforts to reach customers. One of the emerging channels that have been exploited frequently in recent years is Product Placement. Product Placement is not a new concept in the field of promotion. It has been defined as “a paid product message aimed at influencing movie or TV audiences via the planned and unobtrusive entry of a branded product into a movie or TV programme” (Balasubramanian, 1994). Product Placement has also appeared more recently in video games. This report outlines the several key advantages and disadvantages of product placement. Advantages range from cost- effectiveness to positive audience perception and brand association (Delorme & Reid, 1999 et al). Comparing with traditional advertising messages, the product placement sponsor’s identity is kept hidden and these types of hybrid messages enable the sponsor to control the message content, and in the meantime disguise the commercial origins to appear believable. In addition, brand placements often involve an implicit endorsement by a celebrity using a specific brand (Avery & Ferraro, 2000). 1-0 The History of Product Placement Product placement has been traced as far back as to the silent-film days when actors were filmed in front of restaurants. In exchange the restaurant fed the cast and crew free of charge. The very first example of Product Placement is thought to have occurred in the 1800s, in the film Defile du 8u Battalion, where a little wheelbarrow with a soap logo on it was used as an advertisement for the soap and so a new system of advertising was born. Since then examples of Product Placement are evident in every decade. In the 1940’s NW Ayer advertising agency arranged for glamorous film stars to wear De Beers’ diamonds and other jewelry on screen. In 1950’s in the movie Rebel without a Cause James Dean used an Ace Comb and increased sales resulted, also in the movie The African Queen Katharine Hepburn is shown dumping Gordon’s Dry Gin overboard. Although product placement has been a part of popular entertainment from the very beginning, it did not become a large part of the advertising strategy until the 1980’s when the practice of product placement evolved into its own industry. During the following years all of the production studios opened departments specifically ! Product Placement! -2- 2! ! Aladdin Kishk & Colette Keely dedicated to product placement and since then the industry has gained wide spread recognition as a viable marketing strategy. Before the advent of movies and television, soap opera radio broadcasts comprised a large part of popular entertainment. These broadcasts were called “soap operas” because they often mentioned various soap products within the storyline in exchange for financial support from their household cleaning manufacturing sponsors, like Proctor and Gamble. In the 1890’s, when the first films were released, the Lumiere brothers heavily incorporated Lever Sunlight Soap into their films because of their strong business association with a Lever publicist. Examples of Product Placement brands in films include: Budget Rent-a-Truck in Home Alone (1990). Budget was a major player in car rentals, but its truck-rental business was being obscured by household names like U-Haul and Ryder. However Budget reinforced their company name when it put musician John Candy and his merry band along with Jan Hooks (Macaulay Culkin’s mom) in a Budget moving van making the long haul back to Chicago (Businessweek, 1998). Dr. Pepper in Forrest Gump (1994): Tom Hanks visits the Kennedy White House and recalls, “One of the best things about meeting the president was you could drink all the Dr. Pepper you wanted. I think I had me about 12.” This is an example of an ideal usage product placement where a major star consumes a product and talks about it. (Knight Rider/Tribune News Service, Dec 26, 1997). Ford supplied Agent 007’s new $228,000 Aston Martin Vanquish in Die Another Day (2002). As well as this, products such as Revlon, Omega, Phillips/Norelco, British Airways, and Visa signed a worldwide deal estimated to be worth $100 million in product value and marketing support (Hollywood Reporter, April 30, 2002). ! Product Placement! -3- 3! ! Aladdin Kishk & Colette Keely In 1982, the Steven Spielberg blockbuster E.T. included a scene in which the alien character was coaxed out of hiding with Reese's Pieces, a new candy introduced by Hershey. Hershey did not directly pay Universal Pictures for the product placement, but instead agreed to sponsor $1 million worth of advertising for the film. Hershey’s investment more than paid off as sales of Reese’s Pieces increased by 80%. This success sparked a shift in the film industry's revenue models, as major corporations looked to replicate this advertising success with their own products and brands. Other notable product placements in films include Red Stripe in The Firm. Within a month of the The Firm's release, sales of the Jamaican beer had increased by more than 50% in the U.S. In another example, the prominence of Ray Ban sunglasses in Men In Black & Okely in Mission Impossible 2 was the first major instance of using actors’ faces as valuable advertising. (Fig. 1 & 2) Figure 2: Okley In MI2 Figure 1: Ray Ban in Men In Black As with film, heavy use of product placement in television was inspired by one significant moment. In an episode of Survivor 2000, a popular reality television show, the prize for one of the challenges was a bag of Doritos and a Mountain Dew. This episode was so successful in increasing sales of Doritos and Mountain Dew that since then, product placements have become a main part of the prize winnings in several reality shows including The Apprentice, America's Next Top Model, Top Chef, Project Runway, and of course, Survivor. ! Product Placement! -4- 4 ! ! Aladdin Kishk & Colette Keely Product placement is used in traditionally scripted shows as well, including King of Queens, The Sopranos, and Alias. In one episode of Seinfeld, Junior Mints are a main part of the plot. While observing an operation on Elaine’s ex-boyfriend, Jerry and Kramer fuss over a box of Junior Mints, and as a result drop a mint into the patient’s body. This is an example of a sophisticated use of Product Placement where instead of merely showing the characters using the product, the writers incorporate Junior Mints into the dialogue and humor of the show.(Fig. 3) Figure 3: Junior mints in Seinfield Product Placement has also been incorporated into video games and has become very popular. Advertisers do not pay video game makers for product placement, instead the deals are cross-promotion opportunities, and in some cases the game makers pay license fees to use the likenesses of real products in order to make their games more realistic. In an early controversial example of product placement in games, in 1990 a group of doctors trying to reduce teen-age smoking were outraged to find billboard signs with Marlboro and Budweiser logos in video arcade games. Sega, the maker of the games, explained that the inclusion of the logos was an attempt to create a real-life situation. Dave Rosen, co-chairman of Sega’s board, stated, “…there is absolutely no form of paid advertising displayed in any of Sega’s arcade or consumer video games.” Philip Morris and Anheuser Busch both confirmed that they had not authorized use of their logos, and asked Sega to remove the logos from their games. ! Product Placement! -5- 5! ! Aladdin Kishk & Colette Keely Today, advertisers are much more interested in the $24 billion video game industry. Spending on in-game product placement was estimated at $300 million this year, with projections of $1 billion in spending by 2010. Nielsen ratings in 2003 showed a 7% decline in television viewing among 18 to 34 year-old males. This decline was directly attributed to the growing popularity of video games for individuals in this category. In addition to the growing numbers, the gaming population is also extremely attractive to advertisers for several reasons. Gamers have above-average household incomes. Game consoles are becoming “digital hubs” in the living room, which will result in greater advertising exposure for all members of the household. Finally, gamers seem to respond positively to product placement. In one study, 70% of gamers surveyed considered product placement a positive feature that increased the realism of the game. Studies have also shown that short-term recall rate of brand names in video games is upwards of 40%, with sports games taking the lead with a 54% brand recall rate. This makes video game product placement one of the most effective ways to create consumer awareness. With Internet connectivity becoming a standard feature in video game consoles, advertisements no longer need to be preloaded onto the game as advertisements can be loaded and updated at any time. This allows game studios to sell advertisement space for selected periods of time, similar to how traditional television advetisements are sold or how the future virtual product placement spots will be sold. This allows advertisers to commit to purchasing advertisement space only once the game has been proven to be successful. Internet connectivity also allows for greater user tracking. Nielsen, the renowned television research company, has partnered with Chrysler and Activision to track the effectiveness of Chrysler's Jeep placements in Tony Hawk's Underground 2. “Tags” on the Jeeps in the game allow Nielsen to count each time a Jeep appears on the screen or is used by a player. The results allow Nielsen to generate extremely accurate impression statistics, which will result in more accurate pricing for future advertisement Figure 10: A Jeep acts as product placement in Underground 2, placements. ! Product Placement! -6- 6! ! Aladdin Kishk & Colette Keely 2-0 Types of Product Placement There are also THREE main types of advertising models; •The traditional 30-second advertisement •Product placement advertising •Virtual Product placement The traditional 30-second advertisement is centered on the broadcasters, which includes TV networks, cable and satellite service providers. A broadcaster buys the airing rights for different TV shows from production studios, and then airs the shows for consumers. To make a profit, the broadcaster sells advertisement spots to advertisers or ad agencies. The cost for the ad spot varies according to the number of viewers determined by (Nielsen ratings) and the airing time (prime time costs the most). During the 2005-2006 television season, the cost of a 30second advertisement spot in the top-10 shows ranged from $705,000 (American Idol) to $293,000 (Two and A Half Men). In this model, the broadcaster sells all the ad spots, and gets all of the advertising revenue. Product placement advertising, is a form of advertising that concentrates on a show before it is even completed, the production studio can sell placement spots either through an advertising agency/ product placement agency or by reaching advertisers directly. In exchange, the studio may get a placement fee, bartered goods (i.e. the producer gets a free car), or the right to use the product in the show, saving some production costs. In this model, broadcasters do not receive any revenue from product placement and the advertising revenue only goes to production studios. ! Product Placement! -7- 7! ! Aladdin Kishk & Colette Keely ! Product placement strategies can be classified into three main types: 1.implicit product placement 2.integrated explicit product placement 3.non-integrated explicit product placement (Tiwsakul, Hackley & Szmigin 2005). 1- Implicit product placement: ! refers to the placement of a branded product within a television programme without it being formally expressed. These products do not play an active role in the programme but are often seen on the shelf in the background. Burger King is given as an example of this type of strategy in the survey conducted for this report. Implict - Burger King 2- Integrated explicit product placement: ! is formally expressed within a television programme & defined as an integrated explicit product placement which plays an active role, e.g. the actors or actresses consuming the products. Spider Man attaining the Dr. Pepper Can is the example used in the survey for this strategy. Integrated - Spider Man getting Dr. Pepper Can ! Product Placement! -8- 8 ! ! Aladdin Kishk & Colette Keely 3-Non-integrated explicit product placement: concerns branded product which is formally expressed (the sponsor’s name is presented) but it is not integrated within the contents of the programme. Miranda from Sex and the City saying; “I want a pepsi now” is an example of this in the survey. I want a Pepsi Now Non-Integrated example Virtual Product placement then is an advertising model which gives control of advertising revenue back to the broadcasters. Production studios shoot the shows and include placement spots. Broadcasters license the shows, sell the placement spots to advertisers, and then use post-production techniques to populate the placement spots with content. Virtual product placement is currently common on billboards at sporting events. Similarly Product placement in video games can range in degree of interactivity. Game streetscapes can contain billboards with advertisements for products and products can also be woven into the story of a game. In the popular Everquest II game, players can order a pizza from the nearest Pizza Hut from within the game. And in Ubisoft’s And 1 Streetball, an in-game billboard rotates advertising content each time the game is played. Then in Ubisoft’s CSI: 3 Dimensions of Murder, Visa’s fraud protection service alerts players that a credit card has just been stolen and the dynamic nature of video games also allows for rotating advertisements. ! Product Placement! -9- 9 ! ! Aladdin Kishk & Colette Keely Reverse Product Placement While traditional product placement refers to integrating a real brand into a fictional environment, reverse product placement refers to creating a fictional brand in a fictional environment and then releasing it into the real world. The restaurant chain Bubba Gump Shrimp Co. was brought to life through its association with the film Forrest Gump. (Figure 4) Central Perk Café chains, Over 32 chain world wide after the Famous TV show Friends. Figure 4: Bubba Gump Figure 5: Central Perk Café chain In these examples, fictional products were so popular with viewers that companies decided to create real-life versions. Reverse product placement can also be used to generate buzz about a product before its launch. American Apparel, a clothing retailer, launched a line of jeans in the virtual world Second Life several months before launching them in its real-world stores. Last year, Starwood Hotels and Resorts launched a sub-brand called Aloft in Second Life shortly before it appeared in the real world. Since it is often much less expensive to release a fictional product than to manufacture an actual product, reverse product placement may someday be used to gauge the public’s interest in a proposed new product. Companies may release products online, with plans to create the real versions contingent on public reaction to the online version. ! Product Placement! -10- 10! ! Aladdin Kishk & Colette Keely 3 - 0 The Cost of Product Placement In the 2004 - 2005 television season, over 100,000 product placements were embedded in the broadcast networks alone: ABC, CBS, NBC, FOX, UPN, and the WB. The product placement market is growing rapidly and the value of the industry in 2005 was estimated at $4.24 billion. This figure includes barter, where the use of the product is the payment for the placement, and also where the Product Placement enriches the storyline or enhances the character's profile. Figure 6: Product Placement Market (in US bilions) In lieu of cash, many negotiations call for the product company to contribute goods to the production for daily use or special events, for the crew at the finish of filming, as well as vehicles and legal clearances that can provide significant cost savings to the filmmakers. Production for a feature film can barter for product or charge from $1,000 upwards. ! Product Placement! -11- 11! ! Aladdin Kishk & Colette Keely 5% of product placements are paid for in cash with 95% being exchanges of goods or services. Product Placement Agency Fees according to Jay May from Feature this, can expect to pay annual fees of $5,000 - $150,000 to product placement agencies. Cost Examples Image consultant Sam Christensen sites a recent example where Glad supplied paper products in exchange for the placement of a new paper cup in a film. Glad provided all the paper products for the movie, for craft service, including paper towels, trash bags, etc and this in return saved the production company thousands. Steven Spielberg’s film “Minority Report” reportedly received $25,000,000 in product placement revenues, which is about one-quarter of its production budget. Figure 7: Steven Spielberg ! Product Placement! -12- 12! ! Aladdin Kishk & Colette Keely 4 - 0 Advantages and Disadvantages of Product Placement Product placement is advantageous to advertisers in several ways. Firstly viewers cannot bypass the product being advertised if it is integrated into the media, otherwise they would have to skip the whole film or television programme to avoid it. If the product placement is done well, it may not be noticeable to the viewer, and may actually add to the experience. With the decline of the efficacy of the 30-second ad, product placement gives advertisers more opportunities for promoting their goods. The best examples of product placement are seamlessly woven into the narrative. However, when it's not done well, product placement can seem forced and obvious, detracting from the credibility and quality of the experience. Poor product placement can result in viewer fatigue as a result of too much advertising. However there are of course disadvantages with the increase in use of product placement, analysts fear that consumers will develop ad-blindness, becoming so accustomed to advertisements that they stop noticing them. When an advertisement is repeated too often, people adapt to their presence and filter them out of their vision. As well as this poor use of product placement can compromise the integrity of a storyline. The latest James Bond movie Casino Royale, has been lambasted in the movie for being too much like “one long commercial.” Although Casino Royale featured less than half the number of product placements used in other movies released at the same time, something about the ways the products were featured led to ad-resentment and the audience to feel like they were being cheated as the whole movie felt like one long advertisement. Figure 8: Casino Royal ! Product Placement! -13- 13! ! Aladdin Kishk & Colette Keely The television show Grey's Anatomy recognizes this concern and does a great job with product placement. Products are not highlighted, but instead function as accessories worn by the show’s appealing characters. In addition to clothing and accessories, Grey's Anatomy also features music from emerging artists. Complementary websites such as allow fans of the show to purchase the jeans, the title character Meredith Grey, was wearing or to download the track they just heard in the show. As with TV and films there are many Advantages and Disadvantages with the use of Product Placement games. Firstly the cost of creating games has risen substantially due to rising gamer expectations and the increased complexity of console technology. Blockbuster titles from big-name publishers have seen production costs increase over 100% from the previous generation of consoles, with some games costing over $60 million and taking over four years to produce. However, the price users pay for games has remained fairly constant and as a result, game studios have come to rely on product placement and in-game advertising to subsidize their development costs and therefore increase profits. However the disadvantage is that product placement in games may become ubiquitous and as a result game studios risk losing the good will of gamers. As discussed previously, 70% of gamers currently think the use of actual products advertisements to the realism of games and this number is likely to drop as games become more and more saturated with advertising. Figure 9: Too much product placement may detract from the overall experience (MTX Mototrax, Activision) ! Product Placement! -14- 14! ! Aladdin Kishk & Colette Keely Gamer fatigue with advertising may already be on the rise. In 2002, EA (Electronic Arts) struck a deal with McDonald's to include its products in the then popular game Sims Online. The deal allowed Sims players to open their own McDonald's kiosks, and then improve their game stats by consuming McDonald's products. This development was not received well by the gaming community. Columnist Tony Walsh wrote an article for online magazine Shift.com (now defunct) that called for Sims players to protest and boycott McDonald's within Sims Online. His article was distributed widely, and resulted in bad publicity for both EA and McDonalds. As games become more immersive and realistic, opportunities for effective product placement will continue to increase. However, as with film and TV, in order to attract the increasingly ad-savvy and ad-weary gamer, successful product placements need to be woven into the storyline or context of the game, so that they enhance instead of detract from the game. These are some of the advantages of Product Placement in video games compared to Product Placement in TV and films, as it may decrease ad-blindness, as well as allow for the inclusion of a larger number of advertisements. ! Product Placement! -15- 15! ! Aladdin Kishk & Colette Keely 5 - 0 The future of Product Placement The future of product placement in TV, films and video is being shaped by new technologies such as digital television (DTV), digital video recording (DVR), and the linking of products seen on screen (product linking). The movement from analog to digital systems will allow broadcasters to add interactivity to their shows. Using only the TV, viewers will be able to find more information about a product featured in a show, without having to interrupt their viewing experience.(see Fig.10) Figure 10: Sky HD Plus In addition, studios are increasingly using computer-generated imagery (CGI) to add products to a TV show or movie after it has already been produced and edited. Post-Production Placement or Virtual Product Placement allows studios to sell the same “placement spots” to multiple advertisers, and then create different versions showcasing the different products. In addition, placement spots can be customized to suit local needs. For example, a milk carton in a TV show can display different brands for local airings of the show. (see Fig. 11) Figure 11: added Graphics ! Product Placement! -16- 16! ! Aladdin Kishk & Colette Keely As sales of games for mobile devices have risen 61% in the last year, it could be predicted that mobile games could be another outlet for advertisers. Product Placement in mobile games is still in its infancy, with only one title; EA’s Nascar 07, featuring in-game advertising. However, EA, the biggest player in mobile gaming, is planning to expand its ingame advertising and smaller players are likely to follow suit. (see Fig.12) Figure 12 ! The changing nature of advertising can be observed through the technology consortium which is backed by one of the largest cable media companies; NBC Network. It will launch the television industry's first national addressable advertising system. This concept is referred to as addressable advertising and means a single advertiser with an advertisement placement can simultaneously target different versions of a commercial at different demographics of cable subscribers across the entire country. The move is a major step toward a TV experience that is more internet-like. The system and method includes targeted micro-advertising that allows buyers and sellers of advertisements to be paired. Potential sellers of advertising spaces post available times and buyers can then view and purchase the list of available advertisement space. In some cases buyers of advertising space may create an auction. The auction creates a market for available advertising opportunities, purchasers and buyers of the advertising space. The buyer has the ability to search for particular kinds of businesses and particular locations where he/she will most likely have interested potential customers. The seller of advertising has control over what is shown and when it is shown in their place of business. The advertisements can be shown over televisions, at a kiosk, or as overlays onto current programming. The system is run over a network using many servers at a central facility to allow for buyers to find advertising space, run the auction and payment networks. ! Product Placement! -17- 17! ! Aladdin Kishk & Colette Keely 6 - 0 Results The data gathered for this report was principally analysed in order to establish if Product Placement was more effective than other forms of advertising and also to determine if it will be the future of advertising. The questionnaire utilized for this report can be found in the appendix. Further examination of the results obtained from this report also highlighted some interesting findings. When participants were asked the following questions: Do you think Product Placement will be the main advertising method in the future? The majority agreed with the statement and believed Product Placement will be playing a leading role in the future commercial world and in particular with soft drinks and online advertising was thought to be one of the main methods. Even those who were more skeptical of Product Placement being the main method of advertising in the future agreed it will be much more prevalent and will definitely grow. Others felt advertising itself is very current and entertaining and so won’t surrender completely to Product Placement and that you will still need advertisements to show the features of a product. Figure 13 ! Product Placement! -18- 18! ! Aladdin Kishk & Colette Keely ! Name a product you notice out of Product Placement? & where did you see it? All Participants could give at least one example of Product Placement and here are the examples given: •Podge and Rodge, every week on the table •Apple mac and Cassino Royale •Starbucks coffee in the movies •Macbook in various TV shows and movies •I phone, Blackberry in sex and the city movies, Apple bee jewellers in the apprentice. •Dr Pepper & Heineken in friends. •Pepsi in back to the future •Sony appears in a lot of films. •BMW in 007 movies. •Coke is always in American Shows. Which form of advertiseing is effective of you and why? (Options: Product Placement, TV advertisements or None). For those who chose Product Placement, here are a few of their comments: Many participants admitted that they switch channels when they see adverrisements coming on Tv and they would not be aware of Product Placement and so it doesn’t have an extreme effect on them. Because the product is placed in a natural environment in an everyday situation the product is not in your face. One Participant believed Product Placement works well for highend products, for example an aston martin in James Bond. And that the effect of it depends on who is using the product as well i.e if the character is someone you admire the product will be desirable, however if the product is used by a character you dont like then the effect of Product Placement will be lessened. As well as this one person found it less annoying than regular advertisements as they don’t interrupt a show. None A participant who chose this option explained that he/she doesn’t really buy much stuff that’s advertised and reviews most things online. Another participant believed they know too much about advertising to be tricked. ! Product Placement! -19- 19! ! Aladdin Kishk & Colette Keely TV Advertising Those who chose Tv Advertising find Product Placement annoying and would not buy something just because a show endorsed it. They like TV advertising because it is funny. Some distinguish Tv advertisements as more descriptive and Product Placement to be “very in your face and pushy” and you could miss Product Placement. (see Fig. 14) Figure 14 Which of the three advertisements do you prefer? (Implicit, integrated & non-integrated) (see fig. 15) Implicit: Products do not play an active role in the programme and are often seen on the shelf in the background: Opinions on this type of Product Placement vary from it being realistic in everyday life, with products as backgrounds to our lives. And still think it is not as much in your face and none intrusive. The Product doesn’t look forced into the shot and they are not watching a film or Tv proagramme for some advertisment to dominate the scene like non-integrated Product Placement where the product is formally expressed. But some participants didn’t find it as effective as Integrated Product Placement. ! Product Placement! -20- 20! ! Aladdin Kishk & Colette Keely Integrated: Products which play an active role, e.g. the actors or actresses consuming the products: Just one comment was raised with regards this form of Product Placement and one particular Participant felt that “as long as the product can help the hero to finish his job its fine”. Non-integrated: Products which are formally expressed ( the sponsor’s name is presented) but it is not integrated within the contents of the programme. Only one participant prefered this type of product Placement. Figure 15 ! Product Placement! -21- 21! ! Aladdin Kishk & Colette Keely 7 - 0 Discussion The present study aimed to assess if Product Placement in TV soaps, films and video games, will be the future of advertising. The research was conducted using both quantitative and qualitative research techniques, which involved the administration of surveys among college students. The results of this survey suggest that Product Placement is the most effective type of advertising in comparison to the traditional 30-second advertisement. The various types of Product Placement, the cost of Product Placement, the advantages and disadvantages of it and the future of Product Placement were all discussed in this report. This study supports the findings made by a large body of research, as mentioned above. Out of the 12 people surveyed, 75% admitted that product placement is more effective on them than TV advertisements. The results also indicated that the participants preferred implicit Product Placement instead of Explicit or Integrated Product Placement. The report also highlights the need to become aware of the effect or lack of effect Product Placement advertising in the media has. As suggested previously, by Delorme & Reid, 1999 et al there are many advantages of Product Placement such as cost-effectiveness to positive audience perception and brand association. It can be concluded that the advantages out weight the disadvantages and this is a big factor in the success of Product Placement. Some of the best examples are when Product Placement is woven storyline or context of the specific medium so they enhance it and not detach itself from it. Product placement is advantageous to advertisers in several ways, one way is viewers cannot bypass the product being advertised if it is integrated into the media. And so if the product placement is done well, it may not be noticeable to the viewer, and may actually add to the experience. The cost the advertising is also another advantageous factor. Product Placement has been in existence since the 1800s and has gone from strength to strength since. The examples provided in this report portray this and therefore it is no surprise that it will develop even further in the future of advertising. Product Placement will still be popular until more cost effective ways of advertising emerge that can target a large audience. ! Product Placement! -22- 22! ! Aladdin Kishk & Colette Keely New mediums to advertise Product Placement may continue the method. Video games have a lot more scope for future developments of Product Placement. Addressable advertising systems in the TV experience which is more internet like is also another possible future aspect to Product Placement along with targeted micro-advertising. Advertisers however need to be aware of the saturation of Product Placement and the effect of ad-blindness which could be resulting factor. Due to analysis of previous research and results of analytical research conducted for the purposes of this report, it can be concluded that Product Placement maybe be overused in its various different forms, in films, TV programmes and video games and therefore might become less effective as an advertising medium in the future. Many people do dislike Product Placement but also find it more effective than TV advertisements, with Implicit Product Placement being the most preferred form. While efforts were made to ensure that no confounding variables impacted upon the results, there were certain factors, which could have infringed upon results of the present study. For example, the questions in the questionnaire itself were perhaps not adequate enough to extract sufficient information of the purpose of this report. Gender is another factor that could have slightly skewed the results, as there was not an even number of sexes assessed. Another problem was the participant sample used, it was a small sample size of just 12 participants and it only used college students from age 22 up. A more accurate study would have a larger sample size from a wider range of participants. There is no dispute that there is a requirement for further research into the effective methods of Product Placement advertising. Mobile games needs to be researched more, particularly in how it could be the future for Product Placement advertising. It is an emerging industry that is still growing. Micro - advertising also will need to be assessed in the future in terms of its development and success as an advertising medium. An assessment of the advantages and disadvantages in more depth as well as further look into the issue of celebrity endorsements and Product Placement. ! Product Placement! -23- 23! ! Aladdin Kishk & Colette Keely 8 - 0 References •Schudson, M. (1984), “Advertising as capitalist realism”. A d v e r t i s i n g E d u c a t i o n a l foundation. E-ISSN 1154-73. •Gutnik, L, Huang, T., Blue Lin., J & Ted Schmidt, (2007), “New Trends in Product Placement”, Strategic Computing and Communications Technology. •Lai-man, S., and Susanna Kwok Wai-yee (2008), ”Predicting the effectiveness of product placement: a study on the execution strategy and impacts on hierarch of effects”, The Chinese University of Hong Kong Department of Marketing: Oxford Business & Economics Conference Program. ISBN: 978-0-9742114-7-3. •Avery, Rosemary., J, and Rosellina Ferraro (2000), “Verisimilitude or Advertising? Brand Appearances on Prime-Time Television,” Journal of Consumer Affairs, 34 (2), 217—244. •Balasubramanian, Siva K. (1994), “Beyond Advertising and Publicity: Hybrid Messages and Public Policy Issues,” Journal of Advertising, 23 (December), 29—46. •DeLorme, Denise E., and Leonard N. Reid (1999), “Moviegoers’ Experiences and Interpretations of Brands in Films Revisited,” Journal of Advertising, 28 (2), 71—95. •Tiwsakul, Hackley and Szmigin (2005), “Explicit, non-integrated product placement in British television programmes”, International Journal of Advertising, 24(1), pp.95-111. •“How Product Placement Works”, Howstuffworks, http://money.howstuffworks.com/productplacement.htm •“Intel, McDonalds enter Sims’ world”, ZDNet, http://news.zdnet.com/ 2100-9595_22-958098.html •“Opinion: ‘Reverse Product Placement’ Game’s Next Big Thing?”, Gamasutra, Nov. 30, 2006, http://www.gamasutra.com/php-bin/news_index.php?story=11903 ! Product Placement! -24- 24! ! Aladdin Kishk & Colette Keely •BrandChannel.com, http://www.brandchannel.com/brandcameo_films.asp •Brightman, James. “Study Looks at Brands Gamers Recall from In-Game Ads”, Phoenix Marketing International, http://www.phoenixmi.com/about/news/travel_leisure/ 2006110629.phtml •Brown, Erika. “Product placement on the rise in video games” Forbes.com, http:// www.msnbc.msn.com/id/13960083/ •Cohen, Nancy. “Virtual Product Placement Infiltrates TV, Film, Games”, Tech News World, http://www.technewsworld.com/story/48956.html •Edery, David. “Brand Genesis in Games”, Jun. 14, 2006, //www.edery.org/2006/06/brandgenesis-in-games-2/#more-234 •Edery, David. “Reverse Product Placement in Virtual Worlds”, Harvard Business Review, 00178012, Dec2006, Vol. 84, Issue 12. •EMW, http://www.entmediaworks.com/solution_starstyle.htm http://www.brandweek.com/bw/news/recent_display.jsp?vnu_content_id=1003538681 •Nielsen Wireless and Interactive Services, “The State of the Console”, The Nielsen Company, Q4 Nielsen Wireless and Interactive Services, “The State of the Console”, 2006http:// www.nielsenmedia.com/nc/nmr_static/docs/Nielsen_Report_State_Console_03507.pdf •Product Placement News, http://www.productplacement.biz ! Product Placement! -25- 25! ! Aladdin Kishk & Colette Keely 9 - 0 Appendix - Questionnaire - ! Product Placement! -26- 26! ! Aladdin Kishk & Colette Keely Survey Gender Male Age 16-21 Female 22-30 31-45 45-65 66-Up How Often you watch TV ? •more than 4 hours Daily •Less than 4 hours Daily •Occasionally watch tv •rarely watch t How do you feel about Tv ads? Love it Like it Its Ok annoying Yuk Nothing Yuk Nothing How do you feel about Product Placement? Love it Like it Its Ok annoying Which form of advertisement is most effective on you? Why? Product Placement Tv Advertising None Why? Name a product you noticed out of Product Placement? & Where did you see it ? Do you think Product Placement will be the Main advertising in the future ? Which One of the Three following Ad you prefer and why ? Products do not play an active role in the programme and often seen on shelf at the background. Burger King Products which plays an active role, e.g. the actors or actresses consuming the products. Spider Man getting Dr. Pepper Can Products which is formally expressed (the sponsor’s name is presented) but it is not integrated within the contents of the programme. I want a Pepsi Now None Thank You