•Direct and indirect advertising•What money gets spent in what ways and on

what sources

• Processes used by manufacturers and service providers to place their good or service in the public consciousness

• There are many different ways to market products

• Marketing tools often fall into the direct vs. indirect categories

DIRECT ADVERTISING IN THE MEDIA

• Common Direct Advertising techniques– Media ads

• Television• Newspapers • Radio• Internet and emerging

media

THE BREAKDOWN OF WHERE INTERNET ADVERTSING IS SPENT

• Search engines are the most likely source destinations for internet advertising dollars

• Companies market their sites based on traffic or hit levels

• In 2007, online advertising in the US was larger than radio advertising for the first time

• Online advertising spending has doubled between 2006 and 2009

OTHER FORMS OF DIRECT ADVERTISING

• 1.• 2.• 3.• 4.• 5.• 6.

INDIRECT ADVERTISING• Often referred to

as product placement advertising

• As you can see from the chart at right, a big tools used by reality television

List of TV shows with the most instances of product placement (11/07-11/08; Nielsen Media Research

•"The Biggest Loser" 6,248 •"American Idol," 4,636 •"Extreme Makeover: Home Edition," 3,371 •"America's Toughest Jobs," 2,807 •"One Tree Hill," 2,575 •"Deal or No Deal," 2,292 •"America's Next Top Model," 2,241 •"Last Comic Standing," 1,993 •"Kitchen Nightmares" 1,853 •"Hell's Kitchen," 1,807

Movies will get payouts from companies to use their products, from soft drinks to vehicles, to power tools used in hit films

WHICH PRODUCTS USE PRODUCT PLACEMENT MOST

• Certain products are featured more than others. – Automobiles– consumer electronics and computers– Food and drink– Travel– Tobacco

WHAT IS VIRTUAL ADVERTISING

• As of 2007, a new trend is emerging in product placement, the development of capabilities that permit dynamic or switchable product placement.

• Previously post production tools have permitted one time insertion of new product placement images and billboard advertising, notable in televised at baseball and hockey games.

WHAT IS VIRTUAL ADVERTISING• First generation virtual product placement

has tended to be based upon sports arenas where the geometrical relationships of camera and the surface of the flat area onto which the billboard is projected, can be easily calculated.

• Second generation product placement or dynamic product placement is more focused upon commercial products.

WHAT IS VIRTUAL ADVERTISING• Third generation virtual or dynamic product

placement allows targeting of customers with different products that can be dynamically switched based upon such factors as demographics, psychographics or behavioral information about the consumer.

SO WHAT IS PRODUCT DISPLACEMENT

• Some companies do not want their products placed in unflattering situations

• So filmmakers or television producers must digitally remove logos, you often see this when brand names may be blocked out on some reality television programming

• A famous example of this is that the twin towers were digitally removed on some films that were shot in New York before Sept 11, 2001