Product placement: The types, pros, cons and how-to of product placement in film

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So you want to be in pictures?

The types, pros, cons and how-to of product placement


Types of Product Placement

Paid placement It typically ensures the

most impactful placements.

It requires a direct connection to filmmakers.

It is precarious for novices as there is no standardized rate structure for product placement.

Scene from Safe Haven



Bartered placements Placement is exchanged

for promotional support and/or production assets.

Bartered placements are not always the strongest.

Movie promotional departments aren’t always able to secure or impact placement.

Scene from A Good Day to Die Hard



Unpaid placements They typically require

a direct relationship with filmmakers.

They are like playing the lottery. There are mostly small wins with an occasional big win. Scene from The Last Stand


Pros of Product Placement in Film

Potential reach

In addition to viewership in theatres, more than two billion movies are rented in the US annually. Source: money.cnn.com



Potential world-wide audience

Source: MPAA



A Truly Captured audience In-theatre viewing captures attention in a way

that television cannot According to 2013 research from Deloitte, 81% of

Americans almost always or always engage in another activity while watching TV. The figure is 88% among 24-29-year-olds.

According to TNS Media Intelligence, 36% of an hour-long television program is commercials compared to 18% in 1981



Low CPMs that decrease over time Calculating initial ROI for paid placements

Additional distribution that lowers CPM includes movie rentals/downloads, hotel and airline viewing, premium channel distribution (i.e. HBO, Showtime, etc), cable channel distribution

Total DVD Ave # of Total Total # Cost Ave. ticket # of tickets and Blu Ray viewers # of DVD of movie Placement per 1000

Theatrical Box Offi ce* price** sold sales *** per DVD**** viewers viewers***** fee viewers$97,594,140 $7.89 12,369,346 1,172,762 10 11,727,620 24,096,966 $10,000 $0.4150

$293,503,354 $7.89 37,199,411 1,997,308 10 19,973,080 57,172,491 $25,000 $0.4373$1,065,219,746 $7.89 135,008,840 not yet on DVD 10 0 135,008,840 $200,000 $1.4814

* Source: boxoffi cemojo.com

** Source: Hol lywood reporter

***Source: the-numbers .com

****Source: Estimated DVD viewership per DVD according to deadl inehol lywood.com.



Increased brand cacheThe Worth of Product Placement in Successful Films: An Event Study Analysis. Journal of Marketing

Can disclosures lead consumers to resist covert persuasion? The important roles of disclosure timing and type of response . Journal of Consumer Psychology

Product Placement Can Be A Lot More Powerful Than We Realize. Psychology Today

Links to articles/article synopsis are available at www.castalongshadow.com

http://www.castalongshadow.com/


Cons of Product Placement

It’s a relationship business (which can be beneficial)

Lead times are often 9 – 24 months

It’s an organic process with many decisions makers (it’s not for those with control issues)

ROI can be somewhat difficult to quantify

Filming for World War Z began in 2011. The film wasn’t released until the summer of 2013.


Leveraging Placements with Promotion

Promotional overlays substantively increase recall of placements

Promotional partners can often negotiate perks such as set-visits, tickets to premiere, etc.

Promotions can be as powerful or more powerful than the placement itself.


How to Activate with Promotion

Co-branded advertising

SEE NEXT SLIDE



Retail Activation



Publicity and PR



Social media


How do I get started?

Speak with those you know that are doing it

Consider using an agency A reliable source for agencies is the

Entertainment Resource & Marketing Association . www.erma.org

Ask tough questions of candidate agencies Request documentation of performance Ask their strengths and weaknesses Ask specifically with whom they have the best

working relationships inside the industry


For more information

Questions? Contact Mark McFann at [email protected]

mailto:[email protected]