I. Introduction

The Academy of National Economy under the Government of the Russian Federation

Faculty of Real Estate Management

Branded Entertainment: Product Placement

In the Entertainment Business

 

Written by:

3^rd year student

Sorokin Roman

Moscow 2013

Contents

I. Introduction.…………………………………………………………..…….3

II. Origins of and reasons for product placement………………………...…….5

2.1 History of product placement in the cinema..………………..….......….5

2.2 Sponsored shows …………………………….…………………...….….6

III. Product placement………...…………………………………………….……8

3.1 A highly variable price, a relatively low cost ……..………………….....8

3.2 Factors that can influence the cost of a placement………..………..…....9

3.3 A possible influence on purchasing behavior………………….…………11

IV. Branded entertainment in all its forms.……….…………………...……..….13

4.1 Series and television programmes …………………….……...………....13

4.2 Novels and plays …………………………………………...……..…….15

4.3 Song lyrics and branded videogames..…………………………………16

V. Conclusion….....……………………………………………………………...20

VI. References……………………………………………………………..……..23

 

I. Introduction

The expression ‘product placement’, or ‘brand placement’, essentially de­scribes the location or, more accurately, the integration of a product or a brand into a film or televised series. It is also possible, however, to find com-mercial insertions within other cultural vehicles, such as songs or novels. In the visual arts and entertainment world, these brand or product placements are grouped under the banner of ‘branded entertainment’.

For some, seeing brands everywhere is a source of irritation. Other people derive amusement from spotting them. There are those who blank them out as little more than part of the consumer backdrop of life. Love them or hate them, product placements are nonetheless increasingly a part of our daily lives. In future, they will be the principal piece of a progressively more sophisticated communication strategy on the marketing chessboard that is ‘branded entertainment’ – or, quite literally, entertainment by or in con-junction with a brand. This is a world in which a brand is able to get closer to its target audience via a film, a television programme or series, a play, a novel, song, or show, indeed even a video game, using lines of communication quite different from those employed to date by the three main families of above the line, below the line and internet marketing. Hence the broader concept of ‘entertainment marketing’, sometimes used to describe the experiential consumption stemming from these many and varied brand and product placements.

Branded entertainment is an Anglo-Saxon term, but it does not follow that the method is the exclusive province of US marketers. It is certainly true that the United States was the cradle of its early development. For this reason, many examples from the United States will be used to illustrate the pages that follow, in order to fully understand the lead that this country has over others in this area, and the lessons that can be learnt from it.

Brand management and communication are evolving at lightning speed. Product placement in the cinema is still often only associated with the adventures of James Bond. The directors of these films are even criticized for their apparent subservience to the despicable merchants of the Temple. And yet is it not logical to suppose that if this refined and distinguished character chose to drink champagne, it might as well be Bollinger? That if he chose to drive, he might as well drive an Aston Martin Vanquish? That if he wore shoes, they might as well be Church? That if he travelled, he might as well carry a Samsonite suitcase? That if he drank vodka, it might as well be called Smirnoff or Finlandia? That if he looked at his watch, it might as well be a Rolex, or perhaps an Omega? However unique he may be, perhaps even that remarkable character James Bond needs brands, to recreate a link to reality. We shall, however, be analysing many other examples beyond the case of 007: despite being so often cited, the British secret agent is not always the most representative example.

All alert marketers are now on deck, trying to make out as best and as quickly as they can the contours of this new shoreline. Variety magazine recently compared product placement to cocaine for television networks, the infatuation is so strong. But as soon as the demand to seize all available opportunities becomes urgent, prices rise rapidly and steeply. Yes, the possible media become more numerous and diverse every day. Nonetheless, the ‘good’ platforms for the development of a pertinent and performing branded entertainment policy are not exactly legion. Despite the very high prices, in 2005, for the successful series Desperate Housewives, the three or four supplemental product placement opportunities available saw applications from 250 potential advertisers. What yesterday was a simple agreement, even just an ordinary handshake, today appears increasingly as a complex communication process that must be established, if a precise goal is to be attained.