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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
8. WHAT IS IT?
E.T.
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9. WHAT IS IT?
65%
SALES INCREASE
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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.
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12. WHY THE
INCREASE?
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13. WHY THE
INCREASE?
Death of the 30 second spot:
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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.
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19. CHANGING
BEHAVIOR
CHANGES
MEDIA.
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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
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23. REASEARCH
METHOD
Anonymous 12-question survey
100 respondents
All between 18 & 29 years old
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24. RESULTS | Media Consumption
17.7
6.5
4.2
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25. RESULTS | Brand Awareness | TV
17.7 71%
29%
6.5
4.2
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26. RESULTS | Brand Awareness | Film
17.7 71%
73%
29%
27%
6.5
4.2
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27. WHAT DOES
THIS MEAN?
THEY KNOW IT’S
THERE.
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28. BUT HOW DO
THEY FEEL
ABOUT IT?
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29. BUT HOW DO
THEY FEEL
ABOUT IT?
NOT SO BAD.
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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?
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33. A. LESS COMMERCIALS,
MORE PP.
B. MORE COMMERCIALS,
LESS PP.
C. NO CHANGE
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34. RESULTS | Alternative System
17.7 71%
76% 73%
29%
27%
6.5
6%
4.2 18%
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35. UNFORTUNATELY,
THAT’S NOT
GOING TO
HAPPEN.
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36. PRODUCT
PLACEMENT IS
OKAY.
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37. PRODUCT
PLACEMENT IS
OKAY.
USUALLY.
Undergraduate Media Conference | 04/20/12
38. A PREFERRED,
LESS-INTRUSIVE
FORM OF
ADVERTISING.
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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