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TRENDS IN
          PRODUCT
          PLACEMENT
           Hyper-reality, or commercial pollution?



          Grant Spanier
          University of St. Thomas



Undergraduate Media Conference | 04/20/12
AGENDA
            1. Research Purpose
            2. Advertising Background
            3. Product Placement
            4. Research




Undergraduate Media Conference | 04/20/12
PURPOSE
        Study the value, effects and future 
       of product placement.

        Focused exclusively on millennials (18-29)

        Designed to understand millennial opinions
       on product placement. 


Undergraduate Media Conference | 04/20/12
PURPOSE
       Answer these:

       How does product placement function?
       How effective is it? 
       How bothersome is it to viewers? 
       Is it morally objectionable? 



Undergraduate Media Conference | 04/20/12
PURPOSE
       Hyper-reality, or
       commercial pollution?




Undergraduate Media Conference | 04/20/12
WHAT IS IT?
              -     Embedded Advertising
              -     Story Alteration
              -     Product Integration
              -     Booming Industry 
              -     Marketing Solution
              -     Unavoidable




              Movies
              Television (offline/online)
              Music Videos


Undergraduate Media Conference | 04/20/12
WHAT IS IT?




Undergraduate Media Conference | 04/20/12
WHAT IS IT?

                                             E.T.
Undergraduate Media Conference | 04/20/12
WHAT IS IT?


             65%
                            SALES INCREASE




Undergraduate Media Conference | 04/20/12
BACKGROUND
           Most instances of Product Placement:
             The Biggest Loser – 6,248
             American Idol – 4,636
             Extreme Makeover: Home Edition – 3,371
             America's Toughest Jobs – 2,807
             One Tree Hill – 2,575
             Deal or No Deal – 2,292
             America's Next Top Model – 2,241
             Last Comic Standing – 1,993
             Kitchen Nightmares – 1,853
             Hell's Kitchen – 1,807

             $60 million +
                                                 1





                                             1
 h"p://www.mediapost.com/publica4ons/ar4cle/120680/

Undergraduate Media Conference | 04/20/12
BACKGROUND
               $3.1 billion in 2006
               $7.6 billion in 2010
                 1





               More than doubled in less than 5 years.




Undergraduate Media Conference | 04/20/12
WHY THE
           INCREASE?



Undergraduate Media Conference | 04/20/12
WHY THE
           INCREASE?
          Death of the 30 second spot:




Undergraduate Media Conference | 04/20/12
WHY THE
           INCREASE?
          Death of the 30 second spot:

           Snowball effect—ads, ads, ads
           More media channels—more messages
           Conditioned generation


Undergraduate Media Conference | 04/20/12
WHY THE
           INCREASE?
          Death of the 30 second spot:

           DVR / skipping commercials
           Social Media
           Multi-screen viewing habits
     66%
Undergraduate Media Conference | 04/20/12
WHY THE
           INCREASE?
          Death of the 30 second spot:

           DVR / skipping commercials
           Social Media
           Multi-screen viewing habits
     66%
           Solution = Product Placement 
Undergraduate Media Conference | 04/20/12
ADVERTISING
       IS CHANGING.


Undergraduate Media Conference | 04/20/12
ADVERTISING
       IS CHANGING.
       CHANGED.
Undergraduate Media Conference | 04/20/12
CHANGING 
       BEHAVIOR
       CHANGES
       MEDIA.
Undergraduate Media Conference | 04/20/12
CHANGING 
       BEHAVIOR
       CHANGES
       ADVERTISING.
Undergraduate Media Conference | 04/20/12
PRODUCT
           PLACEMENT
           Effective advertising. 
           Additional revenue generator.
           “DVR proof.” 
                    Pros
           Lower production costs.
           More realistic.

Undergraduate Media Conference | 04/20/12
PRODUCT
           PLACEMENT
           More advertising messages.
           Ruins integrity of creative work.
           “Secret advertising.”
               Cons


Undergraduate Media Conference | 04/20/12
REASEARCH
           METHOD
           Anonymous 12-question survey

           100 respondents

           All between 18 & 29 years old


Undergraduate Media Conference | 04/20/12
RESULTS | Media Consumption


                             17.7





                                                    6.5

                                             4.2





Undergraduate Media Conference | 04/20/12
RESULTS | Brand Awareness | TV


                             17.7
 71%



                                                    29%




                                                           6.5

                                             4.2





Undergraduate Media Conference | 04/20/12
RESULTS | Brand Awareness | Film


                             17.7
 71%

                                   73%


                                                    29%

                                                    27%




                                                           6.5

                                             4.2





Undergraduate Media Conference | 04/20/12
WHAT DOES
       THIS MEAN?
       THEY KNOW IT’S
       THERE.
Undergraduate Media Conference | 04/20/12
BUT HOW DO
       THEY FEEL
       ABOUT IT?
Undergraduate Media Conference | 04/20/12
BUT HOW DO
       THEY FEEL
       ABOUT IT?
       NOT SO BAD.
Undergraduate Media Conference | 04/20/12
RESULTS | Program Disruption | TV

                              72%

                             17.7
 71%

                                   73%

                                        53%

                                                               47%

                                                      29%

                                                      27%



                                                        28%

                                                               6.5

                                               4.2





Undergraduate Media Conference | 04/20/12
RESULTS | Program Disruption | FILM

                               76%


                             17.7
 71%

                                   73%

                                      57%


                                                    29%

                                                    27%

                                                             43%


                                                      24%

                                                             6.5

                                             4.2





Undergraduate Media Conference | 04/20/12
SO, WHAT
       WOULD THE 
       RESPONDENTS 
       PREFER?
Undergraduate Media Conference | 04/20/12
A. LESS COMMERCIALS,
           MORE PP. 

           B. MORE COMMERCIALS,
           LESS PP.
           C. NO CHANGE

Undergraduate Media Conference | 04/20/12
RESULTS | Alternative System


                             17.7
 71%

                             76%
 73%



                                                     29%

                                                     27%




                                                            6.5

                                               6%

                                             4.2
           18%





Undergraduate Media Conference | 04/20/12
UNFORTUNATELY,
       THAT’S NOT 
       GOING TO
       HAPPEN. 
Undergraduate Media Conference | 04/20/12
PRODUCT
       PLACEMENT IS
       OKAY. 
Undergraduate Media Conference | 04/20/12
PRODUCT
       PLACEMENT IS
       OKAY.
       USUALLY.
Undergraduate Media Conference | 04/20/12
A PREFERRED,
       LESS-INTRUSIVE
       FORM OF
       ADVERTISING.
Undergraduate Media Conference | 04/20/12
BRANDS THAT
       GET PLACEMENT
       RIGHT CAN RULE
       THE SPACE.
Undergraduate Media Conference | 04/20/12
IF IT BENEFITS
       THE SHOW, 
       THE BRAND WILL
       BENEFIT.
Undergraduate Media Conference | 04/20/12
IF IT BENEFITS
       THE AUDIENCE,
       THE BRAND WILL
       BENEFIT.
Undergraduate Media Conference | 04/20/12
IF IT BENEFITS
       THE AUDIENCE,
       WE ALL WIN.
Undergraduate Media Conference | 04/20/12
THANK YOU!
           Grant Spanier

           grantspanier.com
           grantspanier@gmail.com
           @grantspanier

           Presentation can be found online:
           slideshare.com/grantspanier




Undergraduate Media Conference | 04/20/12

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Trends in Product Placement: Hyper-reality or commercial pollution?

  • 1. TRENDS IN PRODUCT PLACEMENT Hyper-reality, or commercial pollution? Grant Spanier University of St. Thomas Undergraduate Media Conference | 04/20/12
  • 2. AGENDA 1. Research Purpose 2. Advertising Background 3. Product Placement 4. Research Undergraduate Media Conference | 04/20/12
  • 3. PURPOSE  Study the value, effects and future of product placement.  Focused exclusively on millennials (18-29)  Designed to understand millennial opinions on product placement. Undergraduate Media Conference | 04/20/12
  • 4. PURPOSE Answer these: How does product placement function? How effective is it? How bothersome is it to viewers? Is it morally objectionable? Undergraduate Media Conference | 04/20/12
  • 5. PURPOSE Hyper-reality, or commercial pollution? Undergraduate Media Conference | 04/20/12
  • 6. WHAT IS IT? -  Embedded Advertising -  Story Alteration -  Product Integration -  Booming Industry -  Marketing Solution -  Unavoidable Movies Television (offline/online) Music Videos Undergraduate Media Conference | 04/20/12
  • 7. WHAT IS IT? Undergraduate Media Conference | 04/20/12
  • 8. WHAT IS IT? E.T. Undergraduate Media Conference | 04/20/12
  • 9. WHAT IS IT? 65% SALES INCREASE Undergraduate Media Conference | 04/20/12
  • 10. BACKGROUND Most instances of Product Placement: The Biggest Loser – 6,248 American Idol – 4,636 Extreme Makeover: Home Edition – 3,371 America's Toughest Jobs – 2,807 One Tree Hill – 2,575 Deal or No Deal – 2,292 America's Next Top Model – 2,241 Last Comic Standing – 1,993 Kitchen Nightmares – 1,853 Hell's Kitchen – 1,807 $60 million + 1
 1
 h"p://www.mediapost.com/publica4ons/ar4cle/120680/
 Undergraduate Media Conference | 04/20/12
  • 11. BACKGROUND $3.1 billion in 2006 $7.6 billion in 2010 1
 More than doubled in less than 5 years. Undergraduate Media Conference | 04/20/12
  • 12. WHY THE INCREASE? Undergraduate Media Conference | 04/20/12
  • 13. WHY THE INCREASE? Death of the 30 second spot: Undergraduate Media Conference | 04/20/12
  • 14. WHY THE INCREASE? Death of the 30 second spot:  Snowball effect—ads, ads, ads  More media channels—more messages  Conditioned generation Undergraduate Media Conference | 04/20/12
  • 15. WHY THE INCREASE? Death of the 30 second spot:  DVR / skipping commercials  Social Media  Multi-screen viewing habits 66% Undergraduate Media Conference | 04/20/12
  • 16. WHY THE INCREASE? Death of the 30 second spot:  DVR / skipping commercials  Social Media  Multi-screen viewing habits 66%  Solution = Product Placement Undergraduate Media Conference | 04/20/12
  • 17. ADVERTISING IS CHANGING. Undergraduate Media Conference | 04/20/12
  • 18. ADVERTISING IS CHANGING. CHANGED. Undergraduate Media Conference | 04/20/12
  • 19. CHANGING BEHAVIOR CHANGES MEDIA. Undergraduate Media Conference | 04/20/12
  • 20. CHANGING BEHAVIOR CHANGES ADVERTISING. Undergraduate Media Conference | 04/20/12
  • 21. PRODUCT PLACEMENT Effective advertising. Additional revenue generator. “DVR proof.” Pros Lower production costs. More realistic. Undergraduate Media Conference | 04/20/12
  • 22. PRODUCT PLACEMENT More advertising messages. Ruins integrity of creative work. “Secret advertising.” Cons Undergraduate Media Conference | 04/20/12
  • 23. REASEARCH METHOD  Anonymous 12-question survey  100 respondents  All between 18 & 29 years old Undergraduate Media Conference | 04/20/12
  • 24. RESULTS | Media Consumption 17.7
 6.5
 4.2
 Undergraduate Media Conference | 04/20/12
  • 25. RESULTS | Brand Awareness | TV 17.7
 71%
 29%
 6.5
 4.2
 Undergraduate Media Conference | 04/20/12
  • 26. RESULTS | Brand Awareness | Film 17.7
 71%
 73%
 29%
 27%
 6.5
 4.2
 Undergraduate Media Conference | 04/20/12
  • 27. WHAT DOES THIS MEAN? THEY KNOW IT’S THERE. Undergraduate Media Conference | 04/20/12
  • 28. BUT HOW DO THEY FEEL ABOUT IT? Undergraduate Media Conference | 04/20/12
  • 29. BUT HOW DO THEY FEEL ABOUT IT? NOT SO BAD. Undergraduate Media Conference | 04/20/12
  • 30. RESULTS | Program Disruption | TV 72%
 17.7
 71%
 73%
 53%
 47%
 29%
 27%
 28%
 6.5
 4.2
 Undergraduate Media Conference | 04/20/12
  • 31. RESULTS | Program Disruption | FILM 76%
 17.7
 71%
 73%
 57%
 29%
 27%
 43%
 24%
 6.5
 4.2
 Undergraduate Media Conference | 04/20/12
  • 32. SO, WHAT WOULD THE RESPONDENTS PREFER? Undergraduate Media Conference | 04/20/12
  • 33. A. LESS COMMERCIALS, MORE PP. B. MORE COMMERCIALS, LESS PP. C. NO CHANGE Undergraduate Media Conference | 04/20/12
  • 34. RESULTS | Alternative System 17.7
 71%
 76%
 73%
 29%
 27%
 6.5
 6%
 4.2
 18%
 Undergraduate Media Conference | 04/20/12
  • 35. UNFORTUNATELY, THAT’S NOT GOING TO HAPPEN. Undergraduate Media Conference | 04/20/12
  • 36. PRODUCT PLACEMENT IS OKAY. Undergraduate Media Conference | 04/20/12
  • 37. PRODUCT PLACEMENT IS OKAY. USUALLY. Undergraduate Media Conference | 04/20/12
  • 38. A PREFERRED, LESS-INTRUSIVE FORM OF ADVERTISING. Undergraduate Media Conference | 04/20/12
  • 39. BRANDS THAT GET PLACEMENT RIGHT CAN RULE THE SPACE. Undergraduate Media Conference | 04/20/12
  • 40. IF IT BENEFITS THE SHOW, THE BRAND WILL BENEFIT. Undergraduate Media Conference | 04/20/12
  • 41. IF IT BENEFITS THE AUDIENCE, THE BRAND WILL BENEFIT. Undergraduate Media Conference | 04/20/12
  • 42. IF IT BENEFITS THE AUDIENCE, WE ALL WIN. Undergraduate Media Conference | 04/20/12
  • 43. THANK YOU! Grant Spanier grantspanier.com grantspanier@gmail.com @grantspanier Presentation can be found online: slideshare.com/grantspanier Undergraduate Media Conference | 04/20/12