Embedded Advertising

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Embedding Advertising

To embed is to fix firmly in a surrounding mass, to enclose firmly or to cause to be an integral part of a surrounding whole. Embedding Advertising is commercial material is embedded in entertainment content or news in exchange for a payment. The payment may include cash, products, services, location or cross-promotion[1]. Embedded ads may take the form of product placements, product integrations or branded entertainment.

Product Placement

Product placement is an advertising technique used to promote a company’s product or services through a non-traditional advertising, this is usually through appearance in film, television, or other media[2]. It is a marketing concept where product or logo is used as a “prop” in a movie or television shows to achieve prominent audience exposure and create brand awareness. These placements are often initiated through an agreement between a product manufacturer and the media company in exchange for a fee or other considerations. In a survey by Nielsen[3], it stated that “Apple says it never pays for product placement” but the company’s product appears 386 times in original broadcast programming in 2010. If a fee is applicable, the amount paid is normally less than the cost of a regular advertising to have their product used, display or significantly featured in a show or movie.

Many companies rely on advertising to win over new customers and boosts corporate profits, and there have been enormous growth in recent year on the use of embedded as it is said to be a cost effective method to reach out to target customers[4]. In a recent report published[5], Apple, the World’s biggest technology company has ranked 1st again in 2011 with its product appearing in 42.5% of number one film at the US Box Office over the years.

Brands can be featured in 3 primary forms, the product itself can be seen either as background, a corporate logo, trademark or other identify feature may be shown, in the most popular program “Seven’s Winners and Losers”, the Lexus car logo was superimposed on the railing during post product[6], and also direct verbal mentioned of the brand name or product may be made in the dialogue, in the movie “Devils Wears Prada”, “Starbucks Coffee has repeated been mentioned.

Legal Guidelines, Rules and Restriction

Embedded advertising being a form of advertising of businesses falls under the regulations for business conduct to protect consumers and expectations, known as the Australian Consumer Law [ACL]. The ACL is a consumer protection law applied throughout Australia.

As a function of conduct that occurs in the trade of commerce, the ACL applies. Trade or commerce, meaning advertisements and promotional activities made by manufacturers, distributors or retailers and therefore, not inclusive of those personal sale, or electoral advertisements.

Under the ACL, Part 2-4 Section 18, misleading and deceptive conduct, Subsection 1 states, ‘A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.' This section protects the consumers by preventing the advertisers from providing words, audio, visual, action sequences or silence, which may cause a misconception or deception of the audience.

To determine if the conduct of the advertisement have breached s18, it is necessary to test if s18 applies through the three steps, by questioning who is the relevant audience, what impression is being conveyed to the relevant target and if the impression is true or false. Misconception and deception of the conduct heavily relies on the relevant audience and they are most essential in determining the message of the advertisement or conduct. The relevant audiences are determined by the circumstances, like the nature, price, medium and person buying the product. Next, the impression conveyed differently from person to person, an advertisement would convey a message of an average...
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