Product placement is typically used to enhance brand awareness, recall and ideally drive sales. Studies indicate it can play a subtle and implicit role and have a positive impact on brand perceptions and recall, particularly when used in conjunction with TV advertising. Product placement can be passive whereby the product appears in the program or film or it can be active where the brand becomes part of the storyline. As digital technology advances it will enable individual product placement to target by demographic or buying habits.

Definition

Product placement is a subtle form of advertising used to promote branded products or services in a non-traditional way. In contrast to explicit TV advertising, product placements usually appear in movies, TV shows, a game, and increasingly, in online content. A company typically pay a fee to the media company to have their product mentioned, discussed, used or significantly featured in a film or show. The goal is to generate positive feelings towards the advertised brand.

Key insights

1. Effective product placement needs brand integration in the storyline