Product placement is a relatively new marketing ploy that incorporates products into television shows, movies and most recently video games. The actors in the show or game either actually use the product during their scenes, or the product is strategically placed in the background in a noticeable and conspicuous manner. The idea is that the viewer either consciously or subconsciously notices the product and makes a correlation with the movie or its characters and the product. Most of the time, the correlation is a positive one, but sometimes even negative publicity is still good publicity.
The first deliberate form of product placement took place with the creation of the Soap Opera. Soap Operas were actually created as a medium to showcase household cleaning products by incorporating them into the story line. The idea has taken off and become a very important contributor to the marketing and advertising world.
The set designers are responsible for putting the products in the background. The idea is that the product or logo to be so cleverly placed that it doesn't stick out like a blinking neon sign. The product should fit the context of the scene while at the same time stand out enough to draw people's attention to it.
Product placement can be a win-win situation for everyone. While the benefits for the manufacturer are somewhat obvious, the director of the film or television show also benefits from having a real product contribute to the realism of the scene. If the director does not want to pay for an actual brand-name product, they are forced to mimic a product which can actually take away from the focus of the dialogue and direct attention to the fake product. For example, a soda can with the word "soda" has to be used if the director is not willing to pay for the use of an actual Coke or Pepsi product. This can look cheap and corny and distract the viewer from the action or dialogue taking place.