Question

Topic: Advertising/PR

Tv Product Placement Costs

Posted by Anonymous on 4/13/2009 at 11:37 PM ET 250 Points
I have an opportunity for product placement of a body cream on a popular tv show. What is a good price? Assume whatever facts necessary to answer the question.
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  • Posted on 4/14/2009 at 1:16 PM Author
    Randall, nice advertisement for yourself but not even close to answering my very narrow question, if you even read it. Instead of assuming what is necessary for a prompt response you basically just gave a bunch of questions veiled as an insincere offer of help.

    For those willing to help:
    The actress will use product once
    call it our by name
    say she loves it
    5 seconds

    Anyone who knows an approximate dollar range..I wold really appreciate hearing from you.
  • Posted by Jay Hamilton-Roth on 4/15/2009 at 10:01 AM Accepted
    From your perspective, what's the one-time placement likely to do for your business? Let's say best-case that the mention fits seamlessly into the storyline at a key point in the drama (so that everyone is likely to remember it). The actress that mentions it is well-loved by viewers, and the viewers are exactly your target market, the name is easily remembered, your product is easily found (both online and on store shelves), your label reinforces the connection ("As Seen On TV..."), and the price/quality ratio is right.

    If the one-time 5-second appearance is highly likely to convert 1% of the viewers into long-time body cream purchasers, then you have a rough value for the spot (viewership * .01 * profit per unit * # units per lifetime = lifetime value).

    So, if the placement costs you $10,000 and your due diligence shows that best-guess lifetime value to your company is $5,000, you've lost money. You may gain additional sales from the use of "As Seen on TV" (esp. if you can get permission to use the show's name, a still/video clip of the placement, etc.).

    Randall's right - there's no simple answer as to the cost/value.
  • Posted by CelebNow on 4/15/2009 at 3:48 PM Accepted
    I agree with Randall and Jay. I have seen product placement from Free to 25k to 1M. The main thing is incorporation. Look at it like Media Buying. Who will see this, how many times, etc. Then look at the price (a billboard on Sunset Blvd costs more than one in the country somewhere). If it works for your budget and needs, there you go...Good Luck
    PS
    remember they need your revenue just like you need the advertising, don't feel one sided in your negotiations
  • Posted on 4/15/2009 at 7:41 PM Author
    Wow, Thanks for the information, everyone.

    Jay, yes we have talked about making sure the product fits in organically. The actress would use the product, call it out by name, say how much she likes it. The viewers are not my target market but the hype of the show would appeal to my market. The show has an international draw.

    I don't feel like it would be an immediate ROI for us but something to say "Look, Actress loves our products" and use the clip on website and youtube (I know the producer, these are terms we require and they would grant for the deal). We would also have photographs.


    CelebNow, I appreciate your encouragement with the negotiations.

    After mulling it over and seeing all of the advice above I feel like I have framework to value this from and a willingness to walk away if after negotiations it doesn't meet our needs.

    Randall thank you for the CPM suggestion and please accept my
    Sincere apology. I appreiciate your thoughtfulness to respond with additional information.
  • Posted on 4/15/2009 at 7:46 PM Author
    Wow, Thanks for the information, everyone.

    Jay, yes we have talked about making sure the product fits in organically. The actress would use the product, call it out by name, say how much she likes it. The viewers are not my target market but the hype of the show would appeal to my market. The show has an international draw.

    I don't feel like it would be an immediate ROI for us but something to say "Look, Actress loves our products" and use the clip on website and youtube (I know the producer, these are terms we require and they would grant for the deal). We would also have photographs.

    CelebNow, I appreciate your encouragement with the negotiations.

    After mulling it over and seeing all of the advice above I feel like I have framework to value this from and a willingness to walk away if after negotiations it doesn't meet our needs.

    Randall thank you for the CPM suggestion and please accept my
    Sincere apology. I appreiciate your thoughtfulness to respond with additional information.
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