Product Placement

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  • Topic: Brand, Advertising, Product placement
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Journal of Management and Marketing Research

Product placement effectiveness: revisited and renewed
Kaylene Williams California State University, Stanislaus Alfred Petrosky California State University, Stanislaus Edward Hernandez California State University, Stanislaus Robert Page, Jr. Southern Connecticut State University ABSTRACT Product placement is the purposeful incorporation of commercial content into noncommercial settings, that is, a product plug generated via the fusion of advertising and entertainment. While product placement is riskier than conventional advertising, it is becoming a common practice to place products and brands into mainstream media including films, broadcast and cable television programs, computer and video games, blogs, music videos/DVDs, magazines, books, comics, Broadway musicals and plays, radio, Internet, and mobile phones. To reach retreating audiences, advertisers use product placements increasingly in clever, effective ways that do not cost too much. The purpose of this paper is to examine product placement in terms of definition, use, purposes of product placement, specific media vehicles, variables that impact the effectiveness of product placement, the downside of using product placement, and the ethics of product placement. Keywords: Product placement, brand placement, branded entertainment, in-program sponsoring

Product placement effectiveness, Page 1

Journal of Management and Marketing Research INTRODUCTION In its simplest form, product placement consists of an advertiser or company producing some engaging content in order to sell something (Falkow, 2010). As such, product or brand placement continues to be an important practice within advertising and integrated marketing communications in which advertisers push their way into content far more aggressively than ever before (The Economist, 2005). While product placement is riskier than conventional advertising, it is becoming a common practice to place products and brands into mainstream media including films, broadcast and cable television programs, computer and video games, blogs, music videos/DVDs, magazines, books, comics, Broadway musicals and plays, radio, Internet, and mobile phones (Stephen and Coote, 2005). Due to media fragmentation, media proliferation, and declining advertising efficacy, product placement increasingly is becoming an effective way to reach consumers and non-users (Mackay, Ewing, Newton, and Windisch, 2009). It is estimated that two-thirds of TV viewers cut the sound during commercials, channel-surf, or skip them altogether because they are annoying or irrelevant (Kiley, 2006). Smit, van Reijmersdal, and Neijens (2009) have found that the industry considers brand placement and brand-integrated programs as the future of television advertising. In recent years, product placement frequently has been used as the basis of multi-million dollar marketing and promotional campaigns with more than 1000 firms that specialize in product placement (Balasubramanian, Karrh, and Patwardhan, 2006; Argan, Velioglu, and Argan, 2007). The purpose of this paper is to examine product placement in terms of definition, use, purposes of product placement, specific media vehicles, variables that impact the effectiveness of product placement, the downside of using product placement, and the ethics of product placement. PRODUCT PLACEMENT DEFINED Product placement is the purposeful incorporation of commercial content into noncommercial settings, that is, a product plug generated via the fusion of advertising and entertainment (Ginosar and Levi-Faur, 2010). Product placement--also known as product brand placement, in-program sponsoring, branded entertainment, or product integration--is a marketing practice in advertising and promotion wherein a brand name, product, package, signage, or other trademark merchandise is inserted into and used contextually in a motion picture, television, or other media vehicle for commercial...
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