Simmons 1 Trisha Simmons Professor Meade CO 391 29 November 2011 Product Placement in Hollywood Product placement in movies is a tactic

that advertisers have used since the creation of the motion picture industry. The objective of product placement is to reach audiences in a unique, unexpected strategy, while consumers are in a natural environment. The method has proven to be highly effective; thus it would be wise of marketers to implement it as a basic tool in marketing strategies. Product placement in a movie is the visual or audible placement of a brand, product, logo, or service on screen. The placement can be written into the script or seen as a prop or actually used by the characters in a scene. Product placement has been defined as a paid product message aimed at influencing movie or television audiences via the planned and unobtrusive entry of a branded product into a movie (Balasubramanian, 1994). From an advertisers standpoint, product placement is collaboration between producers of goods and producers of media (Galician 10). Movies are not the only media subject to be used for product placement; television has become a popular venue for product appearances. However, this essay will focus on the use of product placement in movies, and the effects product placement has had on the Hollywood movie industry and consumers perceptions of movies and companies that utilize product placement. Endless examples of product placement in movies exist, and many will be discussed. There are genres of films that are excluded from product placement. These movies include those

Simmons 2 that are historical and set to take place in the distant past (where product brands did not exist) or those that take place in an imaginary world (Lehu 51). Examples of historical movies include 300 by Zack Snyder and Apocalypto by Mel Gibson. The Lord of the Rings trilogy by Peter Jackson is an example of a movie based on an imaginary world, free of brands and product placement (Lehu 51). Exceptions to this theory do exist, A Knights Tale is historically set in the past, yet it featured the placement of the Nike logo on the armor the main character wore when jousting. Any company can place their brand or product in any movie, so long as the writers are willing to cooperate. A wide collection of examples of product placement exist and the type of products placed varies greatly. Again, the placement does not have to be a physical product placed, it could be a logo or symbol representing a brand. For example, rather than actually use a BMW vehicle in a movie the BMW logo could be displayed on a billboard in the background of a scene. However, products are generally the most popular form of placement, and referred to as classic placement. Automobile, beer, and soda companies have been the dominant types of products seen in the top-grossing movies (Gailician 23). Regardless of what is being advertised in a movie many questions surrounding the topic of product placement arise: Why is product placement used? What started the use of product placement? Does using product placement really benefit a business? How is product placement restricted? Is product placement ethical? These questions will be answered as the history, forms, and future of product placement are explored. Product placement is not a marketing strategy that is taken lightly. In todays movies product placement is very costly to a company and can range from $10,000 to $3 million (Lehu 5). Because of the heavy cost companies must ensure that their placement is maximized, and in order to do so the business must fully understand the process of consumer perception and

Simmons 3 perform sufficient consumer research. Perception, in relation to the consumer, is a process in which information is received, selected, organized, and interpreted. Consumers are selective at every stage of perception: exposure, attention, comprehension, and retention (Belch 119). There are three stages of consumer perception that marketers need to be aware of: (1) sensing external information, (2) selecting and attending to various sources of information, and (3) interpreting and giving meaning to the information (Belch 118). This process occurs when a consumer is exposed to an advertisement, product package, brand name and logo, or any other marketing stimuli. Because of the sensitivity of consumer perception it is important for marketers to understand how consumers will react to marketing stimuli. A variety of techniques have been used to capture the attention of variety of consumers, including sensory elements such as scent strips in magazines (Belch 118). This step in the perception process is called sensation Once the attention is caught marketers must then focus on delivering the proper messages and information to the targeted audience. How the stimulus is selected and comprehended varies for each individual based on their wants and needs (Belch 118). During the interpretation step consumers organize information and interpret it based on pre-established information and experiences. The perception process is very complex and marketers must be attentive to the process in order to effectively deliver marketing messages. There is an additional factor that completely changes the approach marketers will take when creating a message: selectivity. The sheer number and complexity of the marketing stimuli a person is exposed to in any given day require that this filtering occur (Belch 119). Clutter refers to the overwhelming number of ads available and seen by the consumer, specifically within a medium; clutter is a big problem to advertisers (Belch 209). The American Association of Advertising Agencies estimates that the average person is exposed to anywhere between 600-625 advertisements or

Simmons 4 marketing messages per day, however not all of the exposures are noticed ("Ho w Many Ad ver t ise me nt s is a P er so n E xpo sed t o in a Day?) . Of those exposures, it is estimated that 76 ads are actually noticed ("How Many Ad ver t ise me nt s is a P er so n E xp o sed t o in a Day?) . Experts say that majority of audiences blank them (advertisements) out as little more than part of the consumer back drop of life (Lehu 1). The U.S. Firm Simmons Market Research Bureau, in August 2005, found that 33% of respondents claimed to notice product placement in films (Lehu 6). New technology, such as TiVo, has also given audiences the power to be selective about the ads they are exposed to. There are other methods used by advertisers to break through the clutter, including product placement, such as public relations. Publicity and public relations are viewed as more credible because the media is disseminating rather than an organization (Guth & Marsh, 2003). Integrated marketing communications is also responsible for fueling the use of product placement in the media because it has fostered an awareness of how pieces of public perception can complement each other (Galician 105). Advertisers have argued whether product placement is effective, some of its supporters also argue that it targets the subliminal mind. In order for this to be possible there must be agreement that the subliminal mind exists. Modern studies conducted have ended in results that stand as substantial proof that the subliminal mind exists and is active (Carey Mental Health and Behavior). More fundamentally, the new studies reveal a subconscious brain that is far more active, purposeful and independent than previously known (Carey Mental Heallth Institute). The hype over the existence of the subliminal mind started in 1957 when James Vicary claimed to have used subliminal messages to boost concession stand sales at a movie theater (Carey Mental Health and Behavior). Vicary claimed to secretly flashing the words Eat popcorn and

Simmons 5 Drink Coke during a movie without the audience being aware, and that this tactic boosted the sales of Coca-Cola and popcorn sales. Five years later Vicary admitted to falsifying the facts and the hype over subliminal advertising faded, however, the hype over product placement did not. It is apparent that product placement is not subliminal because it is meant to be seen on screen. An example of subliminal stimuli comes from a study conducted that exposed one group of people to the smell of cleaning products and on group was not exposed. The results showed that the group exposed to the smell of the cleaning products tidied up more, thus proof that the subliminal mind can be reached through a stimuli (Carey Mental Health and Behavior). While product placement is not hidden, it can work subliminally because audiences often do not notice the placement, making the effects of product placement occur subliminally. Apart from acting as a subliminal trigger, product placement offers benefits to both the companies paying for placement and the creators of the movies. The table below lists the advantages of using product placement to each organization involved: Advantages to Advertisers/Marketers Creates brand awareness Enforces and supports an IMC plan Offers low cost high reach and frequency Forces audiences to be exposed Catches audiences during a moment of pleasure Advantages to Movie Makers Finances movie production Lowers movie production costs Creates a link to reality

Today product placement has become a supplemental source for brand awareness. Alone it will not launch a brand; however as part of the brand advertising and marketing mix it can be a

Simmons 6 catalyst in generating enormous amounts of impressions (Lehu 8). On top of greatly benefiting companies, product placement has offered immense support to movie production budgets. The Transformers movies by Michael Bay are examples of movies that have benefitted from the use of product placement. Not only do the movies feature over 30 different product placements, but the main characters in the movies are vehicles entirely paid for by General Motors, therefore lowering production costs. A contract that allows the cost of the marketing budget to be diverted on to partners can quickly come to represent tens of millions of dollars (Lehu 57). The concept started in 1919 when the first incident of product placement of Red Crown Gasoline was seen in the short, silent film, The Garage (Noble). The New York Times first noted the trend of brands placing products in films in a 1929 article (Topic of the Times). At one point in product placement history the purpose was for the simple and very good reason that it was not about making the advertisers pay, but above all benefitting from accessories, vehicles, services for free that they are allowed to appear onscreen (Lehu 20). The appearance on screen is referred to as classic placement; other types of placement include institutional, evocative, and stealth, these can be seen in the table on the next page:

Simmons 7
Type of Placement Classic Description Product appears on screen during a scene Positives Tactical, simple to do, little to no cost Negatives Easily unnoticed, especially if there are many placements in the movie (Lehu 9) Easily unnoticed, viewers may not be familiar with the brand, viewers can have a pre-established bad impression of the brand (Lehu 10) Unnoticed if the audience cannot identify the brand or product (Lehu 11) Potential to be completely unnoticed (Lehu 12-13)

Institutional

Placing a brand rather than a product, a product is not demonstrated being used on screen

Longer life of a brand, can benefit all of the products and services the brand sells

Evocative

Placement of a unique product that can stand without having its name or brand cited on screen highly discreet, almost undetectable placement of a product in its natural setting

Stealth

Subtle, if recognized it means the product has a distinction over its competition, can evoke positive emotions towards the brand and/or product Least criticized, blends into the natural setting, can generate the most powerful impact

Product placement can also be incorporated into scripts. A more unique method of using product placement was demonstrated by the movie Youve Got Mail with Meg Ryan. The movie was funded almost $6 million by AOL and the story was entirely based around the usage of AOLs e-mail service (Galician 105). Another method of product placement with a movie is not focused an actual placement at all, but rather an association between a movie and a product. Dole, the giant fruit distributor, placed Curious George stickers on 100 million bananas for its placement in the 2006 movie (Lehu 49). Dole even distributed a sticker collector board to encourage the sales of the marked bananas and to support the release of the movie (Lehu 49). The result of this agreement was the tie-in of the two; audiences watching the movie would only relate it with Dole bananas. More substantial proof of the effectiveness of product placement has been measured and documented. A professional in the business of movie making and product placement, Steven

Simmons 8 Spielberg, has argued that product placement has made his films more realistic, therefore making the movie successful at the box office. Spielbergs Minority Report features multiple brands such as Nokia, Pepsi, Ben & Jerrys, Fox, USA Today, and Burger King in the futuristic setting of 2054. Spielberg openly claimed to have chosen to use so many product placements to ensure that his audiences could comprehend that the story took place on Earth and not another sciencefiction planet, and because it would allow them to relate the future with a time that is not as distant as expected (Lehu 22). In 1982 product placement became the buzz amongst audiences and advertisers once again (Gailician 105). The well known candy company Mars, Inc. opted to decline a shining spot in another Spielberg creation, E.T. Ironically the placement carried no price tag, and after M&Ms said no the placement Reeses Pieces stepped in to claim the role (Gailician 105). A number to go down in product placement history was the 66% increase in Reeses Pieces candy sales within three months (Gailician 105). A product that was relatively new to the candy market skyrocketed into Hollywood fame and concession stand glory. However, the benefits of product placement extend further than the sales of a product. Advertising has become less credible because audiences are too aware and desensitized to commercials and print ads. The reaction to this loss is to use a more credible source; audiences trust what they see in movies because the movie is made to elicit such emotions. Movies are written to make audiences feel a connection to the characters and the story; this makes the consumers more likely to trust the placement in a movie because of the emotional connection. A product placement can also establish an entire brand image if placed correctly. Hence the advantage for the film makers of knowing the brand, apart from its financial support, in order to ensure that it does indeed correspond to the impression they hope to evoke (Lehu 45). An example of proper product placement for a specific target audience can be found in Teenage

Simmons 9 Mutant Ninja Turtles (Steve Barron, 1990). The target audience for the movie was clearly the younger generation, specifically teenage males. At the time, Dominos Pizza was also interested in reaching the teenage/college age males, and Dominos was able to successfully do so because of its placement in Teenage Mutant Ninja Turtles. The movie was a hit that lasted through multiple generations and Dominos pizza will be forever associated with the Ninja Turtles. The most significant downfall to product placement is the difficulty in measuring the effectiveness of its use. Sales are easy to track for obvious reasons, but measuring a marketing effort used to change an audiences perception or attitude towards a product or brand is difficult because an attitude is not quantifiable, and to determine a change would require an abundance of follow-up research. Many critics see product placement as a vehicle for evil in the movie industry. In 1919, at the birth of product placement, the Exhibitors Alliance released a statement that said: Advertising on the screen is a very serious problem. The exhibitor must, above all things, consider the rights of his patrons (Seagrave 3). The Alliance saw product placement as a mark against the film industry and violation of audience rights. Universal Studioss own president, Carl Laemmel, even referred to product placement as prostitution of the screen (Lehu 17). No movie maker can argue that product placement is not just that, prostitution of the screen, because it quite literally is. The movie makers are getting paid to perform the service of placing a brand in a movie. At the most extreme level critics have even fought for the banning of product placement and fought for Congress to place restrictions on the method. However, in order for Congress to restrict product placement without violating any First Amendment rights Congress would have to define product placement at commercial speech and that has not passed (Gailician 89). Congress is not likely to do so because there is not enough evidence to prove

Simmons 10 product placement as commercial speech; a movie is a primarily noncommercial message to which some arguably commercial speech (product placement) has been added (Gailician 96). No official legislation against product placement can be expected in the near future. For now the future of product placement is still growing greatly. The reason for the continuous growth of product placement relies heavily on technology; the increase in the required budget for Hollywood film making and movie makers desires to create realistic movies should be included among reasons for growth as well. Over the last few decades product placement has shown steady growth. A study conducted by Mary-Lou Gailician resulted in the discovery of consistent number of product placement appearances over the span of three decades, 1977, 1987, and 1997. The top-grossing movies were evaluated for the study, and the number of appearances of product placement was counted in each film. The numbers showed no drop or boom in product placement: 182 counts of product placement in 1977, 170 in 1987, and 194 in 1997 (Gailician 19). Based on this study it is apparent that product placement is a form of marketing that will not fade in the future. One can only imagine what the numbers would be like for 2007, had the study continued on. The year 2007 featured huge box office hits, including Michael Bays Transformers. Transformers took a unique approach to its product placement appearances; the movie actually used GMC placements as main characters in the script; this was a guarantee that audiences would notice what type of car their favorite Autobot was. Bay is well known in Hollywood for his utilization of product placement in his films, and GMC was only one of the many brands placed in his film that year (Noble). In the decade between 1997 and 2007 the number of placements seen in films increased, rather than stayed consistent. The usage of product placement is not a form of marketing that can only maintain. The future of product placement

Simmons 11 is in the process of growing, this growth is caused by technology. The technology in the film industry requires a larger budget for films, because audiences expect bigger and better graphics, stunts, and special effects each year. And because of the growth in technology and budgets for film making, film makers must utilize every opportunity to make money from their film, and this guarantees a long life for product placement. Product placement has now expanded into television. New technology even allows the digital product placement of brands in previously aired shows. This opens a new door for the usage or product placement. The continued use of product placement can only mean one thing: product placement is effective. If this were not the case advertisers would have moved on long ago. For now the tactic is here to stay and may even one day be considered a standard procedure for large companies with nationally known products.

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