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How Does Product Placement Work?
Home » Advertising & Marketing » Product Placement » How Does Product Placement Work?Posted by Your Guide on October 11, 2006 9:28 PM
Product placement works in a couple of different ways. One way manufacturers get their product onto the set is by paying a placement fee to have their product used in one way or another. The more frequent the exposure of the product or the mention of the product, the higher the placement fee.
The placement fees can be determined through quantification methods that track brand integrations. Studies can be done to measure the recall rate of the viewers to see what type of impact the presence of a certain product made. Sometimes products are included but can't be identified by the viewer and other times products can play a key role in a storyline. Oftentimes, a manufacturer will pay to have their product be the sole brand represented in the entire show. Examples include an automobile company paying to have only Fords used in the movie or television show. Or, for a movie or show where cell phones are used frequently, Motorola may pay to have their phones be the only phones used by the actors. In general, this is a relatively cost-effective way to advertise when compared to the hundreds of thousands of dollars 30-second commercial spots cost. It has been proven that teenagers are especially influenced by the products used by actors in certain movies and television shows.
Another way manufacturers get their products on-screen is to negotiate or barter with the producers. For example, the actor, director or producer of a movie may be willing to showcase a certain vehicle in the movie if they receive one as compensation for their own use. Or, if the product provides a service such as cellular phones, the manufacturers may equip the cast and crew with the cell phones in order for them to be used in the production. The options of this type of bartering system are endless and are negotiated most commonly by a representative of the product and the set designer. Some manufacturers believe in product placement so much that they hire product placement companies to do the negotiating to ensure their product is included in all of the right places at the right times.
There are times that a product finds its way on the screen without the manufacturer becoming aware of its usage. This is important for times when the product is used in a negative manner and the manufacturer may be concerned with the message that is insinuated with the connotation of the product. Law suits can possibly be filed in these instances, so it is a good idea to always get permission from the manufacturer!
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