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
References: Argan, M.; Velioglu, M.N. & Argan, M.T. (2007). Audience Attitudes Towards Product Placement in Movies: A Case from Turkey. Journal of American Academy of Business, Cambridge, 11(1), March, 161-168. Auty, S. & Lewis, C. (2004). Exploring Children 's Choice: The Reminder Effect of Product Placement. Psychology & Marketing, 21(9), 697. Balasubramanian, S.K. (1994). Beyond Advertising and Publicity: Hybrid Messages and Public Policy Issues. Journal of Advertising, 23(4), 29-46. Balasubramanian, S.K.; Karrh, J.A. & Patwardhan, H. (2006). Audience Response to Product Placements: An Integrative Framework and Future Research Agenda. Journal of Advertising, Provo, 35(3), 115-142. Branded Content Seeks a Second Act. Brandweek, New York, May 28, 2007, 48 (22), 4-5. Brennan, I. (2008). Brand Placement in Novels. International Journal of Advertising, 27(4), 495509. Brennan, I. & Babin, L.A. (2004). Brand Placement Recognition: The Influence of Presentation Mode and Brand Familiarity. Journal of Promotion Management, Binghamton, 10(1,2), 185. Business: Lights, Camera, Brands; Product Placement. The Economist, London, 377 (8450), October 29, 2005, 81. Callahan, S. (2004). Marketers Explore Product Placement. B to B, Chicago, 89(13), 1-3. Cebrzynski, G. (2006). Lights! Camera! Product Placement! Nation 's Restaurant News, New York, December 4, 40(49), 1-5. Chang, S.; Newell, J. & Salmon, C.T. (2009). Product Placement in Entertainment Media. International Journal of Advertising, 28(5), 783-806. Cowley, E. & Barron, C. (2008). When Product Placement Goes Wrong. Journal of Advertising, 37(1), 89-98. Craig-Lees, M.; Scott, J. & Wong, R. (2008). Perceptions of Product Placement Practice across Australian and US Practitioners. Marketing Intelligence & Planning, 26(5), 521-538. d 'Astous, A. & Seguin, N. (1999). Consumer Reactions to Product Placement Strategies in Television Sponsorship. European Journal of Marketing, Bradford, 33 (9/10), 896. Daugherty, T. & Gangadharbatla, H. (2005). A Comparison of Consumers ' Responses to Traditional Advertising and Product Placement Strategies: Implications for Advertisers. American Marketing Association Conference Proceedings, Chicago, 16, 24. de Gregorio, F. & Sung, T. (2010). Understanding Attitudes toward and Behaviors in Response to Product Placement. Journal of Advertising, 39(1), 83-96. Delattre, E. & Colovic, A. (2009). Memory and Perception of Brand Mentions and Placement of Brands in Songs. International Journal of Advertising, 28(5), 807-842. Edwards, J. (2005). Drug Product Placements Flying Under FDA 's Radar. Brandweek, New York, 46(41), 14. Edwards, J. (2006). In Product Placement Game, Toys Largely on the Sidelines. Brandweek, 47(14), 18. Eisend, M. (2009). A Cross-Cultural Generalizability Study of Consumers’ Acceptance of Product Placements in Movies. Journal of Current Issues and Research in Advertising, 31(1), 15-25. Exclusive PQ Media Research. BusinessWire, New York, August 16, 2006, 1. Product placement effectiveness, Page 20 Journal of Management and Marketing Research Exclusive PQ Media Research: Branded Entertainment Market Defies Slowing Economy, Expands 14.7% to $22.3 Bil. In 2007. BNET BusinessWire. Retrieved on November 14, 2010 from http://findarticles.com/p/articles/mi_m0EIN/is_2008_Feb_12/ai_n24258182/, February 12, 2008. Falkow, S. (2010). PR Trends 2010: Branded Content. The Proactive Report. Retrieved on November 14, 2010 from http://www.proactivereport.com/c/pr/pr-trends-2010-brandedcontent/. Friedman, W. (2003). Intermedia Measures Product Placements. TelevisionWeek, 22(50), December 15, 4. Ginosar, A. & Levi-Faur, D. (2010). Regulating Product Placement in the European Union and Canada: Explaining Regime Change and Diversity. Journal of Comparative Policy Analysis, 12(5), 467. Gupta, P.B. & Gould, S.J. (2007). Recall of Products Placed as Prizes Versus Commercials in Game Shows. Journal of Current Issues and Research in Advertising, 29(1), 43-53. Hackley, C.; Tiwsakul, R.A. & Preuss, L. (2008). An Ethical Evaluation of Product Placement: A Deceptive Practice? Business Ethics: A European Review, 17(2), 109-120. Hartley, M. (2007). Product Placement at a Whole New Level. The Globe and Mail, August 3. Holbrook, M.B. & Grayson, M.W. (1996). The Semiology of Cinematic Consumption: Symbolic Consumer Behavior in Out of Africa. Journal of Consumer Research, December, 374-381. Hong, S.; Wang, Y.J. & de los Santos, G. (2008). The Effective Product Placement: Finding Appropriate Methods and Contexts for Higher Brand Salience. Journal of Promotion Management, 14, 103-120. Hudson, S.; Hudson, D. & Peloza, J. (2007). Meet the Parents: A Parents’ Perspective on Product Placement in Children’s Films. Journal of Business Ethics, 80, 289-304. Industry News – Product Placement on the Increase. Business Monitor International, July 31, 2007. In-Game Advertising: Target Acquired. New Media Age, October 27, 2005, 20. Kiley, D. (2006). Television: Counting the Eyeballs. Business Week. Retrieved on November 15, 2010 from http://www.businessweek.com/magazine/content/06_03/b3967116.htm. Kuhn, K.L.; Hume, M. & Love, Anita (2010). Examining the Covert Nature of Product Placement: Implications for Public Policy. Journal of Promotion Management, 16(1/2), 59. Kureshi, S. & Sood, V. (2010). A Review of Placement Literature: Conceptual and Managerial Implications. The IUP Journal of Marketing Management, 9(1&2), 23-39. La Ferle, C. & Edwards, S.M. (2006). Product Placement. Journal of Advertising, 35(4), 65-87. Lee, M. & Faber, R.J. (2007). Effects of Product Placement in On-line Games on Brand Memory. Journal of Advertising, 36(4), 75-90. Lehu, J. (2008). Branded Entertainment: Product Placement & Brand Strategy in the Entertainment Business. Brand Management, 16(3), 216-217. Lehu, J. & Bressoud, E. (2007). Effectiveness of Brand Placement: New Insights about Viewers. Journal of Business Research, 61, 1083-1090. Lehu, J. & Bressoud, E. (2009). Recall of Brand Placement in Movies: Interactions between Prominence and Plot Connection in Real Conditions of Exposure. Recherche et Applications en Marketing, 24(1), 7-26. Lord, K.R. & Gupta, P.B. (1998). Product Placements in Movies: The Effect of Prominence and Mode on Audience Recall. Journal of Current Issues and Research in Advertising, 20, 47-59. Product placement effectiveness, Page 21 Journal of Management and Marketing Research Lord, K.R. & Gupta, P.B. (2010). Response of Buying-Center Participants to B2B Product Placements. The Journal of Business & Industrial Marketing, 25(3), 188. Mackay, T.; Ewing, M.: Newton, F. & Windisch, L. (2009). The Effect of Product Placement in Computer Games on Brand Attitude and Recall. International Journal of Advertising, 28(3), 423-438. Mandese, J. (2006). When Product Placement Goes Too Far. Broadcasting & Cable, New York, 136(1), 12. Matthes, J.; Schemer, C. & Wirth, W. (2007). More than Meets the Eye. International Journal of Advertising, 26(4), 477-503. McClellan, S. (2003). Grading Product Placement. Broadcasting & Cable, 133 (50), December 15, 1. McClung, S. & Cleophat, C.R. (2008). Product Placement in African-American Targeted Shows on the Defunct UPN Network. Journal of Promotion Management, 14, 121-136. McDonnell, J. & Drennan, J. (2010). Virtual Product Placement as a New Approach to Measure Effectiveness of Placements. Journal of Promotion Management, 16(1/2), 25. Nearly One-Third of Consumers Viewed a Place-based Video Ad in Last 30 Days. gfkmri.com. Retrieved on November 14, 2010 from http://www.gfkmri.com/assets/PR/GfKMRI_101910PR_PlaceBasedVideoAds.htm, 2010. Nelson, M.R. & McLeod, L.E. (2005). Adolescent Brand Consciousness and Product Placements: Awareness, Liking and Perceived Effects on Self and Others. International Journal of Consumer Studies, 29(6), 515-528. Newell, J.; Salmon, C.T. & Chang, S. (2006). The Hidden History of Product Placement. Journal of Broadcasting & Electronic Media, 50(4), 575-594. Old McDonald 's Has a Hold on Kids ' Taste Buds. BusinessWire, New York, August 6, 2007. Panda, T.K. (2004). Consumer Response to Brand Placements in Films Role of Brand Congruity and Modality of Presentation in Bringing Attitudinal Change Among Consumers with Special Reference to Brand Placements in Hindi Films. South Asian Journal of Management, New Delhi, 11(4), October-December, 7-26. Plambeck, J. (2010). Product Placement Grows in Music Videos. The New York Times. Retrieved on November 14, 2010 from http://www.nytimes.com/2010/07/06/business/media/06adco.html?_r=2, July 5, 2010. Pokrywczynski, J. (2005). Product Placement in Movies: A Preliminary Test of an Argument for Involvement. American Academy of Advertising Conference Proceedings, Lubbock, 40-48. Product Placement: A Place for Everything. New Media Age, London, August 11, 2005, 18. Product Placement Effectiveness and Growth. NextMedium. Retrieved on November 14, 2010 from http://www.nextmedium.com/news/statistics.html, 2008. Quart, A. (2008). The Ratings Game. The Big Money. Retrieved on November 14, 2010 from http://www.thebigmoney.com/articles/hey-wait-minute/2008/09/19/ratings-game. Redondo, I. & Holbrook, M.B. (2008). Illustrating a Systematic Approach to Selecting Motion Pictures for Product Placements and Tie-ins. International Journal of Advertising, 27(5), 691-714. Romaniuk, Jenni (2009). The Efficacy of Brand-Execution Tactics in TV Advertising, Brand Placements, and Internet Advertising. Journal of Advertising Research, June, 143-150. Russell, C.A. (1998). Towards a Framework of Product Placement: Theoretical Propositions. Advances in Consumer Research, 25, 357-362. Product placement effectiveness, Page 22 Journal of Management and Marketing Research Russell, C.A. (2002). Investigating the Effectiveness of Product Placements in Television Shows: The Role of Modality and Plot Connection Congruence on Brand Memory and Attitude. Journal of Consumer Research, 29, 306-318. Russell, C.A.; Norman, A.T. & Heckler, S.E. (2004). The Consumption of Television Programming: Development and Validation of the Connectedness Scale. Journal of Consumer Research, 31(2), 150-161. Russell, C.A. & Stern, B.B. (2006). Consumers, Characters, and Products: A Balance Model of Sitcom Product Placement Effects. Journal of Advertising, Provo, 35(1), Spring, 7-22. Saini, A.N. (2008). U.S. Television Product Placements Declined by 15% in the First Half of 2008. Journal of Promotion Management, 14, 77-83. Schiller, G. (2007). Digest: Product Placement Gains. Film Marketing – News, March 16. Scott, J. & Craig-Lees, M. (2010). Audience Engagement and Its Effects on Product Placement Recognition. Journal of Promotion Management, 16(1/2), 39. Shapiro, M. (1993). Product Placements in Motion Pictures. Working Paper, North Western University, NY. Smit, E.; van Reijmersdal, E. & Neijens, P. (2009). Today’s Practice of Brand Placement and the Industry Behind It. International Journal of Advertising, 28(5), 761-782. Snoddy, R. (2006). Time to Formalise Product Placement. Marketing, London, October 4, 18. Song, M.K. (2007). Visure Corp. Releases Groundbreaking Research for Product Placement from Its iVisure(TM) Technology. PR Newswire, New York, June 13. Statistics: Why Product Placement?.1st Place. Retrieved on November 14, 2010 from http://www.productplacement.co.uk/statistics.cfm, 2010. Stephen, A.T. & Coote, L.V. (2005). Brands in Action: The Role of Brand Placements in Building Consumer-Brand Identification. American Marketing Association Conference Proceedings, Chicago, 16, 28. Stringer, K. (2006). Advertising: Pop-in Products: Images Are Inserted into Popular Television Shows. Knight Ridder Tribune Business News, Washington, February 16, 1. Sung, Y. & de Gregorio, F. (2008). New Brand Worlds: College Student Consumer Attitudes toward Brand Placement in Films, Television Shows, Songs, and Video Games. Journal of Promotion Management, 14, 85-101. Sung, Y.; de Gregorio, F. & Jung, J. (2009). Non-Student Consumer Attitudes towards Product Placement. International Journal of Advertising, 28(2), 257-285. Ta, S. & Frosch, D.L. (2008). Pharmaceutical Product Placement: Simply Script or Prescription for Trouble? Journal of Public Policy & Marketing, 27(1), 98-106. Te’eni-Harari, T.; Lehman-Wilzig, S. & Lampert, S.I. (2009). The Importance of Product Involvement for Predicting Advertising Effectiveness among Young People. International Journal of Advertising, 28(2), 203-229. Thomasch, P. (2007). Product Placement Spending Seen Up 30% in '07. Reuters News, 14, March 14, 37. Tops in 2008: Top Advertisers, Most Popular Commercials. 1st Place. Retrieved on November 14, 2010 from http://blog.nielsen.com/nielsenwire/consumer/tops-in-2008-top-advertisersmost-popular-commercials/, December 15, 2008. Tsai, M.; Liang, W. & Liu, M. (2007). The Effects of Subliminal Advertising on Consumer Attitudes and Buying Intentions. International Journal of Management, 24(1), 3-15. van Reijmersdal, E.A. (2009). Brand Placement Prominence: Good for Memory! Bad for Attitudes? Journal of Advertising Research, June, 151-153. Product placement effectiveness, Page 23 Journal of Management and Marketing Research van Reijmersdal, E.A.; Neijens, P.C. & Smit, E.G. (2007). Effects of Television Brand Placement on Brand Image. Psychology and Marketing, 24(5), 403-420. van Reijmersdal, E.A.; Neijens, P.C. & Smit, E.G. (2009). A New Branch of Advertising: Reviewing Factors that Influence Reactions to Product Placement. Journal of Advertising Research, December, 429-449. van Reijmersdal, E.A.; Neijens, P.C. & Smit, E.G. (2010). How Media Factors Affect Audience Responses to Brand Placement. International Journal of Advertising, 29(2), 279-302. Wasserman, T. (2005). How Much Is this Shot Worth? Brandweek, New York, 46(3), 21-25. Weaver, A. (2007). Product Placement and Tourism-Oriented Environments: An Exploratory Introduction. International Journal of Tourism Research, 9, 275-284. Wiles, M.A. & Danielova, A. (2009). The Worth of Product Placement in Successful Films: An Event Study Analysis. Journal of Marketing, 73, July, 44-63. Yang, M. & Roskos-Ewoldsen, D.R. (2007). The Effectiveness of Brand Placements in the Movies: Levels of Placements, Explicit and Implicit Memory, and Brand-Choice Behavior. Journal of Communication, 57, 469-489. Yaveroglu, I. & Donthu, N. (2008). Advertising Repetition and Placement Issues in On-line Environments. Journal of Advertising, 47(2), 11-43. Product placement effectiveness, Page 24