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product placement

Navigating the Evolving Media Landscape

  • OTT 2023

The media landscape continues to evolve, arguably at a faster rate than ever. Leading media and measurement experts presented research-based insights on how viewers use different forms of TV/video on various platforms. Attendees joined us at the Warner Bros. Discovery Studios in California and via livestream to understand the latest data and discussions of the data’s implications.

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More Product Placements?

Recent reports predict an increase in product placement and product integration spending. Research shows how to make them more effective.

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What the Metaverse Means for Marketers

On September 21, 2022, speakers from Kantar, Meta, Next Media Partners, Snap, VMLY&R, Wunderman Thompson Intelligence and XRGuild shared insights into how the Metaverse will impact marketers. They discussed implications for interoperability as well as paid advertising.

What Makes Product Placements Effective?

  • CMO Brief

Product placements have grown in recent years and the practice is predicted to increase even further. According to a new “Global Product Placement Forecast” by media economists PQ Media, global product placement spending has rebounded at double-digit rates in 2021 and is forecast to do so again this year. What makes this strategy effective? Decades of research provide us with several useful insights.

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What’s Behind Consumer Recall of Brands Co-Appearing in TV Programs?

  • JOURNAL OF ADVERTISING RESEARCH

Consumers’ short- and long-term memory and recognition of brands that co-appear in television programs is affected differently when the juxtaposed products are either in the same or different categories, and when the brands are either familiar or unfamiliar, new research shows. The findings are intended to help strengthen product placement strategies and decisions around choosing the right co-appearing partners.

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Why Content Quality Matters So Much in Native Advertising

  • Yoori Hwang (Myongji University) and Se-Hoon Jeong (Korea University)
  • JOURNAL OF ADVERTISING RESEARCH

Practitioners who develop native advertising campaigns should pay close attention to where they place mentions of their brand. This empirical study found that a poorly written article that is associated with a brand message will lead to negative perceptions about both the brand and the credibility of the news source.

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The Relationship Between Product Placement and the Performance of Movies: Can Brand Promotion in Films Help or Hurt Moviegoers’ Experience?

The authors of this September 2015 article in the Journal of Advertising Research, Reo Song, California State University, Long Beach; Jeffrey Meyer, Bowling Green State University, Bowling Green, Ohio; Kyoungnam Ha, University of New Haven, West Haven, Connecticut, studied the relationship between product placement and the performance of movies.

Their study examined how product placements related to the performance of the media context through word of mouth about the movies. The authors analyzed whether advertising in the form of product placements in films impacted consumer enjoyment of the movie, and, in turn, whether the related positive or negative WOM about the film impacted box-office revenues.

The authors investigated the relationship between product placements and the performance of 122 movies released between 2000 and 2007 and found that product placements had both helpful and harmful consequences. This finding elucidates the heretofore unknown relationship between product placements and programming performance.

-Product placements exhibited a positive relationship with movie revenues, but when used in excess the relationship with revenues turned negative.

-The relationship between product placement and the benefits a consumer receives from media programing is robust across movies with different budgets and qualities.

Important managerial implications suggested by this research:

-Both media programmers and advertisers may need to reevaluate the widely assumed negative effects of product placements based on the findings of this study.

-Firms that produce media programing and those that place advertising in such media can enjoy a win–win situation from product placements, especially if those placements involve major brands that are familiar to consumers.

-However, too much of this positive can become negative. As the number of placements passes a saturation point (44, as the current study demonstrated), the relationship with movie performance turns negative. In particular, programing firms that give in to the temptation to allow too many placements may suffer weaker programing performance when holding all other factors constant. The average number of placements in the current sample was 16, suggesting that movie studios might understand both the positive and the potential negative effects of product placements.

-Studios should continue to limit the number of product placements to a reasonable boundary and avoid excessive placements (e.g., more than 50), which generally appear associated with poorer box office performance.

See all 5 Cups articles.