Largely because the ways we're interacting and consuming brands and products is changing (iPod is synonymous with MP3 player, we're skipping ads on TV, more people are blogging, etc) marketing is changing along with that. Part of that change is leading to more and more product placement within the entertainment we take in, something that's becoming almost unavoidable. As fears continue to amount over just how much ad-skipping is going on and how much people are just flat out tuning out ads, marketers are hoping the rapt attention we pay to the shows we watch translates into rapt attention being paid to the brands featured in those shows. Spending on paid placement worldwide in 2005 was $2.2 million, a number that's expected to triple to $7.6 billion in 2010. That's just half as much as forecasts for overall placement, which include brand mentions that are bartered with producers for other things, a number that could reach $14 billion in 2010 across the world. That growth isn't expected to just come from TV and movies, though those media will likely see the biggest slices of the pie. Books, video games and other outlets will also see the effects of increased placement budgets.Product placement just getting bigger
Largely because the ways we're interacting and consuming brands and products is changing (iPod is synonymous with MP3 player, we're skipping ads on TV, more people are blogging, etc) marketing is changing along with that. Part of that change is leading to more and more product placement within the entertainment we take in, something that's becoming almost unavoidable. As fears continue to amount over just how much ad-skipping is going on and how much people are just flat out tuning out ads, marketers are hoping the rapt attention we pay to the shows we watch translates into rapt attention being paid to the brands featured in those shows. Spending on paid placement worldwide in 2005 was $2.2 million, a number that's expected to triple to $7.6 billion in 2010. That's just half as much as forecasts for overall placement, which include brand mentions that are bartered with producers for other things, a number that could reach $14 billion in 2010 across the world. That growth isn't expected to just come from TV and movies, though those media will likely see the biggest slices of the pie. Books, video games and other outlets will also see the effects of increased placement budgets.Reader Comments
(Page 1)2. Product placement is running amuck! There is even a website (www.brandchannel.com/brandcameo_films.asp) that counts the products in mainstream movies. Here is just one example. The new film "Talladega Nights: The Ballad of Ricky Bobby" contains placements for the following brands: 3M, 76 Lubricants, ACDelco, Advanced Auto Parts, Applebee's, Baby Einstein, Baccarat, Bain de Soleil, Bell, Big Red, BOSCH, Budweiser, Cadillac, Caterpillar, Checkers, Chevrolet, CitiFinancial, Coca-Cola, Commit, Coors, Country Crock, Craftsman, Dickies, Dodge, Domino's Pizza, Dynacorp, EA Sports, ESPN, FedEx, Fig Newton, Food Lions, Ford, Fox, Gillette, Goodyear, Halliburton, Havoline, Honda, Hummer, Jenga, Jesel, Jim Beam, Kentucky Fried Chicken, Kodak, Lowe's, Lucky Charms, M&M's, Mac Tools, mbna, McDonald's, Michelob, Mobil, Mopar, Motorola, Mountain Dew, MTV, NASCAR, NBC, NetZero, Nextel, Old Spice, Pepsi, Perrier, Playgirl, Powerade, Puma, QVC, Rally's Hamburgers, RE/MAX, Sharpie, Sony Vaio, Sparco, SPEED Channel, Sprint, Subway, Sunoco, Taco Bell, Target, Tide, United Auto Workers (UAW), USG, Vanson Leathers, Visa, Waffle House, Wal-Mart, Winnebago, and Wonder Bread.
3. I think that some product placement in TV and movies is actually truer to life than showing the star eating Fruty O's. People use Coca Cola not Bob's Cola. They drink Starbucks coffee and eat Krispy Kremes. To have people eating fake brands look stupid. So, not only is product placement smart for the manufactures, it makes movies and TV seem more true to life.
Posted at 10:12PM on Aug 17th 2006 by Maureen
4. The best right now is Treasure Hunters, they all drive Toyota Tundras, they answer 'Motorola Messages' on their phones, they exclusively use Ask.com for information, and I guess signage is provided by Genworth Financial.
I would have thought hearing all that that it would be ridiculous, but it isn't, and all the products save Genworth are actually being used as intended in the show, so there's nothing too contrived about it.
The show's turned out great, and I hope they make a bundle of cash and it comes back.
Posted at 7:11AM on Aug 18th 2006 by Textbook Case
5. @ Rhea (#2)
Talladega Nights may be an outlier on the product placement rankings simply because it's a movie about NASCAR... so product placement is part of the humor (given NASCAR's propensity for pushing sponsors in any way possible). Don't forget that a majority of the companies on the list would be seen simply by watching any Sunday race on the tube.
Interestingly, Wonderbread was actually written into the original script as Ricky Bobby's sponsor before the movie even filmed. The studio then worked out a zero-cash deal with Interstate Brands (owner of the Wonderbread brand) to include it in the movie.
Here's a great article regarding the unprecedented product placement of Talladega Nights:
http://www.hollywoodreporter.com/thr/marketing/article_display.jsp?vnu_content_id=1002949783
1. nice information.
Posted at 6:24PM on Aug 17th 2006 by Url