RESOURCES · E-NEWSLETTERS · THINK · DECEMBER 2005

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WHY WAIT FOR COMMERCIAL BREAKS?

Product placements sell when consumers are most receptive

In the not-too-distant past, there was a clear distinction between paid advertising and publicity but in recent years that distinction has blurred. Today's effective marketing strategies are increasingly comprehensive. They often integrate traditional marketing techniques with public relations methods that offer a wider variety of options for placing positive messages about a product or service.

Public relations offers some substantial benefits to clients. It can be extremely cost effective, achieving comparable results without multimillion-dollar ad campaigns. And strategies employed by public relations professionals may be more subtle and credible than advertisements.

Let's take a look at one effective strategy: product placement. Product placement is a promotional tactic in which a commercial product, package or logo is featured in a movie, television program or other medium. Payment often is based on exposure, such as the number of times the product is shown or the duration of exposure. Other times there are no out-of-pocket costs other than providing free products to the show's producers and the cost of the agency PR time involved in setting up the arrangement.

Product placement in movies has been around for years. Everyone remembers E.T. eating Reese's Pieces or Tom Cruise sporting Ray-Ban sunglasses in Risky Business. Today, product placements in movies have increased dramatically. James Bond uses a Nokia cell phone, Austin Powers drinks Pepsi and Bo Duke drives a Dodge Charger. Whatever the product, the goal is to create a positive association with that product, creating brand recognition that stays with the viewer when he's making purchasing decisions later.

Television programs offer an even greater opportunity for product placement, not only because of the sheer numbers of programs, but because of their ability to reach very specific audiences. As more and more viewers fast forward through commercials on their VCRs or eliminate them completely on their digital recording systems, product placements often reach viewers when paid commercials can't. The popularity of reality shows has opened up even more avenues for product placements. Branded household products are spotlighted on Meet Mister Mom, building materials on Extreme Makeover: Home Edition and all kinds of goods and services are seen on Three Wishes.

Sporting events—whether live or televised—offer another venue for product placement. From banners lining stadium walls to logos encasing NASCAR race cars, sponsors reach viewers without ever going to commercial break. Manufacturers of athletic shoes and apparel have long realized the value in having their logos seen on the shoes, shorts, jerseys and hats of today's top athletes. Everyone wants to wear the same brand as their favorite sports hero.

New digital technology is making product placement easier and even more versatile. For example, some televised sporting events feature stadium billboards which are blank slates that can be filled in from the control room. This allows messages to easily change from game to game or even several times during the same event. Movie and television producers may soon use the same technology for their product placements. For example, a character could drink from a blank soda can during production and the brand name could be digitally filled in later after sponsors are confirmed.

Product placements are not limited to movies and television. Increasingly, brand names are included in song lyrics, music videos and computer and video games. The opportunities are virtually unlimited. When used in conjunction with a strategic advertising and public relations program, product placement can be a powerful and cost-effective tool in your marketing arsenal.

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