Know-How Exchange : Student Questions

What is your definition of product placement? If you are talking about having products appear within a television show or movie as part of the scene (not as a separate advertisement), this would still be considered a form of advertising and part of promotion within the 4Ps.

In the new 'marketing management' handbook (Kotler and Keller 2006) , product placement is indeed classified under 'advertising', as it is impersonal communication to a large audience. Moreover, performance measurement would be similar to advertising (changes to brand recognition, preference, etc), versus sales promotion/direct mail (judged on direct sales effects).

Sorry, there are no potted models, see below for the reasons.

A wit from a top 10 agency, who is also a CRM client (Hence no names!) described product placement as “Above the Line advertising at Below the Line costs, without the hassle of the Advertising Standards Regulator breathing down my neck” The last caveat has now changed as the UK government is investigating product placement, a hard task when New Labour has managed to insinuate itself to every Sitcom on the planet!

It should be treated according to the rules governing above the line activities. The product is visible (Literally on TV at least!) referred to, sometimes by name and paid for, whether via a fee to the programme maker or by allowing it to be blown up (Any James Bond Film and the car he drives)

Product and brand awareness is easy to follow and measure by survey and focus group and year on year studies show that the longevity of the cinema film means that the value of “advertising” placements of both the brand and the specific product is maintained (Not spread – that implies dilution) over many years. Look at “The Italian Job” as an example which did more for the Mini than all the rest of it’s advertising put together. See:

https://www.itvx.com/iPageCount,9,ppnews.asp for an in depth paper on the subject.

There’s and excellent paper from South Africa investigating the regulatory issues. I cite it because it covers many of the diverse aspects Product Placement brings advertising into.

https://www.icasa.org.za/Default.aspx?page=1350&moduledata=657

There are no “Off-the-shelf” models because every placement contract is individually negotiated and the process is a bit secretive – if the public become too aware of product placement, then they go and have a cup of coffee in the middle of a film, rather than at the interval. Most above the above-the-line agencies are involved and a direct approach to their “Film Media” people will secure results if you guarantee anonymity or academic discretion. They are wiling to be quoted, but from my experience in getting CRM stories from my Ad-land clients they want sight of any copy and an agreement to edit anything which has the potential to embarrass.

It works for the little people to. I use it in everything I do voluntarily. If I organise a Scouting event, I state that the mailing list and sponsorship database was provided by Maximizer – it only takes one mum who runs a PR company to read it----! Whoops, I’ve done it here!!

Hope this helps


Steve