Product PlacementAdvertising for the “skip” generation.

Product Placement:On the Rise-

U.S. marketers continue to investment in product placement in order to connect with harder-to-reach, multitasking consumers

Brands are becoming more innovative in how they capitalize on social media trends- like developing live placements

There is no marketing tactic that can match the durability, consistency or growth trajectory of product placement

Product Placement:U.S. Ads Spending-

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

20122017

$63.80

$36.60

$22.80 $16.10 $16.40 $14.10

$0.80 $0.70

$81.60

$69.40

$18.40 $17.30 $15.20 $11.90

$1.50 $0.90

2012 vs. 2017

Billi

ons

Compiled from authors at priceonomics.com

Product Placement:Why the Shift?

Ads become skippable, mutable, or avoidable by other means and net reach has plummeted

The average brand recall across all commercial campaigns has dropped to 30%

78% of marketers believe the effectiveness of T.V. advertising is in sharp decline

Product Placement:Why the Shift?

What Brands Spend Annual

$64 billion on T.V. ads

$16 billion on radio ads

$700 million on films

$800 million on video games

Only 30% of those dollars are going to

hit their mark

Compiled from authors at priceonomics.com

Product Placement:Consumer Trust in Ads Worldwide-

Recommendation from people I know

Consumer Opinions Online

TV Ads

Magazine Ads

E-Mails

TV Product Placement

Online Video Ads

Social Media Ads

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2007201120132015

Compiled by author from source: statista.com

Product Placement:Trust in Ads Worldwide 1st Quarter 2015-

Recommendation from people I know

Consumer Opinions Online

TV Ads

Magazine Ads

E-Mails

TV Product Placement

Online Video Ads

Social Media Ads

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%83%

69%

64%

62%

56%

56%

50%

47%

85%

70%

67%

62%

57%

60%

53%

51%

Millennials Generation X

Compiled by author from source: statista.com

Product Placement:Statistics-

The U.S. is the largest and fastest growing paid product placement market

It is estimated that 80% of all brands appearing in U.S. film and T.V. do so by free prop supply- not paid for deals

68% of product placements last for 5 seconds or less, but the average time of a product placement in a movie is 6.2 seconds

Product Placement:Integration vs. Placement

Product Placement

The product is visible, but it is often not the focus

Three main types are visual, verbal, and signage

Image source: Google Images

Product Placement:Integration vs. Placement

Brand Integration

The brand is interlaced within the script, showcasing product functions and unique features

Image source: Google Images

Product Placement:Why Use It?

Consumers feel a connection and recognize a brand without realizing why

Placements produce results- especially when compared to typical ads

Consumers exhibit stronger recall and higher awareness of brands and also more receptive to messaging with product placements

Product Placement:Why it Works-

We want to believe in the fictional world we when we watch television

Ads are subtler than ever, yet they affect us far more than we realize

Well-done product placement can snag allegiance when our guard is already up

Product Placement: Study done by Ian

Zimmerman-

However, an implicit association test revealed that, on a subconscious level, the second group actually still felt closer to it

The first group liked Nike more after, but the second group said they were less inclined toward the brand after viewing the clip

One group was shown the clip alone and the other watched the clip on the lookout for product placements

Showed two test groups a clip from Friends that featured Nike ads

Compiled by author from source: intuitiveconsumer.com

Product Placement:Works When-

The placement strengthens an existing brand memory rather than forming a new

one- Avoid using product placement for

new launches

It leverages existing associations with that brand- Particularly if done in fresh novel

ways

New associations link to the brand with strong, positive

emotions

Compiled by author from source: intuitiveconsumer.com

Product Placement:T.V. vs. Movies-

Average number of viewers who watch a movie at least once: 120 million

Average number of people who watch a typical average television commercial: 15 million

Film and television product placements both generate an average response and action rate of 25-30%.

Product Placement:T.V. Shows-

T.V. advertisements are routinely the time when viewers get up to take a break, find a snack, or skip them altogether

61% of 18- to 24-year-olds and 67% of teens think that there were too many ads on traditional T.V.

Millennial viewers demand more control and customization of viewing experiences- more time shifting and binge-viewing

Product Placement:Movies-

When a product appears in a movie there is almost 100% viewing audience

Placements saves productions a lot of money- contributing to the production of better content

Productions love working with brands because they get cool technology without having to invest cash

Product Placement:Benefits for Brands in

Movies-International

exposure to an engaged audience

Placement increase employee

morale

Brand authenticity through a

creditable source

The best CPM for actual

engagement compared to other

types of advertising

Positive reception by

viewers

An chance to build off-screen

campaigns around the film

Increase of sales Easier to market

to niche consumer groups

Opportunity in increase variety Star association

Compiled from authors at blog.hollywoodbranded.com

Contact Us for the Full Presentation:

Mediacontact USA Inc.13575 58TH Street North #160

Clearwater, Fl. 33760

T: 727 538 4112E: contact@mcusa.co

www.mediacontactusa.com

Works Cited Brown, Erika. "Product Placement on the Rise in Video Games - Technology & Science - Tech and Gadgets - Forbes.com | NBC

News." Msnbc.com. NBCNews.com, n.d. Web. 22 Feb. 2016. <http://www.nbcnews.com/id/13960083/ns/technology_and_science-tech_and_gadgets/t/product-placement-rise-video-games/>.

Gaille, Brandon. "46 Product Placement in Movies Statistics." BrandonGaille.com. N.p., 23 Jan. 2015. Web. 22 Feb. 2016. <http://brandongaille.com/46-product-placement-in-movies-statistics/>.

Genco, Steve. "A Neuromarketing Perspective on Product Placement in Movies and TV Shows : Intuitive Consumer Blog." Intuitive Consumer Insights. Intuitive Consumer Blog, 15 Oct. 2015. Web. 22 Feb. 2016. <http://intuitiveconsumer.com/blog/a-neuromarketing-perspective-on-product-placement-in-movies-and-tv-shows/>.

Hobbs, Thomas. "Why Brands Need to Include Music Videos in Their Marketing Mix."Marketing Week. Centaur Communications Ltd, 24 Aug. 2015. Web. 22 Feb. 2016. <https://www.marketingweek.com/2015/08/24/why-brands-need-to-include-music-videos-in-their-marketing-mix/>.

Kolowich, Lindsay. "From Ray-Bans to Reese's Pieces: 13 Unforgettable Examples of Product Placement." HubSpot Blog Homepage. HubSpot, 12 Nov. 2015. Web. 22 Feb. 2016. <http://blog.hubspot.com/marketing/product-placement-examples>.

"Mistake 27: Overlooking 10 Important Reasons Why Brands Do Product Placement."Hollywood Branded Blog. Hollywood Branded Inc., 1 Dec. 2015. Web. 22 Feb. 2016. <http://blog.hollywoodbranded.com/overlooking-10-important-reasons-why-brands-do-product-placement>.

Mullin, Sheppard. "Branded: Product Placement and Video Games." Law of the Level. Sheppard, Mullin, Richter & Hampton LLP, 19 June 2009. Web. 22 Feb. 2016. <http://www.lawofthelevel.com/2009/06/articles/advertisingmarketing/branded-product-placement-and-video-games/>.

Nathanson, Jon. "The Economics of Product Placements." Priceonomics. N.p., 4 Dec. 2013. Web. 22 Feb. 2016. <http://priceonomics.com/the-economics-of-product-placements/>.

Newman, Jason. "Old Videos, New Ads: Advertising's Shocking Next Frontier." Rolling Stone. N.p., 4 Nov. 2014. Web. 22 Feb. 2016. <http://www.rollingstone.com/music/features/old-videos-new-ads-advertisings-shocking-next-frontier-20141104>.

Works Cited O'Reilly, Terry. "Show Me The Money: The World of Product Placement." CBCRadio. CBC/Radio-Canada, 4 Aug. 2015. Web.

22 Feb. 2016. <http://www.cbc.ca/radio/undertheinfluence/show-me-the-money-the-world-of-product-placement-1.3046933>. Osborn, John R. "Vast Difference In Program & Ad Viewing Highlighted By Millennials Stats."Online VideoInsider. MediaPost

Communications, 20 Jan. 2016. Web. 22 Feb. 2016. <http://www.mediapost.com/publications/article/267133/vast-difference-in-program-ad-viewing-highlighte.html>.

Palmbeck, Joseph. "Product Placement Grows in Music Videos." The New York Times. N.p., 5 July 2009. Web. 22 Feb. 2016. <http://www.nytimes.com/2010/07/06/business/media/06adco.html?_r=0>.

Persaud, Christine. "TV Networks Eyeing New Commercial Formats for Fall Season." Digital Trends. N.p., 24 Aug. 2015. Web. 22 Feb. 2016. <http://www.digitaltrends.com/movies/networks-integrate-advertising-into-shows-late-night-empire/>.

"The Relationship Between Product Placement and the Performance of Movies: Can Brand Promotion in Films Help or Hurt Moviegoers’ Experience?" The Advertising Research Foundation. The Advertising Research Foundation, n.d. Web. 22 Feb. 2016. <http://thearf.org/5-cups/the-relationship-between-product-placement-and-the-performance-of-movies-can-brand-promotion-in-films-help-or-hurt-moviegoers-experience/>.

Robb, David (2004). Operation Hollywood: How the Pentagon Shapes and Censors the Movies. New York: Prometheus Books. pp. 180–182. ISBN 1-59102-182-0.

Sapienza, Ethan. "4 Reasons Why Product Placement Can Be Good for Indie Fil." Indiewire. N.p., 22 July 2015. Web. 22 Feb. 2016. <http://www.indiewire.com/article/4-reasons-why-product-placement-can-be-good-for-indie-film-20150722>.