Presented by:

Daniela Garcia, Eric Lundberg,

Lorenz Marsh, Julie Nhan

A practice in which manufacturers of goods or

providers of a service gain exposure for their
products by paying for them to be featured in
films and television programs.
Also known as embedded marketing or
advertising, it has been around for just under
100 years, but marketers have become much
more sophisticated in the way they use it.
Product placement has become a common
practice in American movies, beginning with
first notable product placement of Hersheys
chocolate in the 1927 silent movie Wings.

Visual - product , service, or

logo can simply be observed

Spoken - product, service, or

correlation is mentioned

Usage - character interacts

with the product

Pricing varies based on contracts

arranged by agencies
Ford paid $14M to have James Bond
drive the Ford Mondeo.
It was on screen for around 3 minutes,
which equates to $78,000 per second!
Some prestigious brands such as Apple
and Mercedes dont pay for placement in
movies and TV shows

 Growth of 11% annually - In the US, product placement spending has been
rising at an annual rate of over 11% since 2009. In 2012, U.S. spending was
$4.75 billion
$8.25 billion globally in 2012 - Global product placement grew in 2012 by
11.7% to $8.25 billion. projected by increase by at least 9% through 2016.
75% of all broadcast-network shows feature placements of some kind.
The top 10 TV shows of 2008 featured 29,823 product placements.

Consumers tuning out

66% of viewers mute skip or tune out commercial segments.
90% of consumers with DVR skip commercials
78% of marketers believe that the effectiveness of TV
advertising is a sharp decline.
Advertisers spend $64 billion TV ads every year and only
30% are seen.
Fragmentation of audiences
Streaming services
From 129 channels in 2008 to 189 channels today

 Cost - lower cost than traditional advertisements.

Longevity of medium - strengthen brand name recognition
and serve as a long term reminder advertising.
Captive audience no skipping, muting, tuning out
Stronger recall and higher awareness from 20% to
43% higher than ads
Connection with audience viewed favorably in proper
context, more easily targeted

No creative control - Lack of control over how the products are

portrayed or incorporated into a scene or storyline
Commercial failure - little to no influence over the success of the
TV show or movie
Brand association - possibility of negative character association
Timing - risk that content could be delayed, cancelled or launched
early
Consumer burnout - increasing prevalence (75% of primetime shows
now contain product placement) can cause consumers to tune out or
view placement negatively

Like everyone else, I had become a slave to the IKEA nesting instinct. If I saw
something clever like the coffee table in the shape of a yin and yang, I had to have it. I
would flip through catalogues and wonder, What kind of dining set defines me as a
person? I had it all. Even the glass dishes with tiny bubbles and imperfections, proof
they were crafted by the honest, simple, hard-working indigenous peoples of
wherever.