Adreak just had an article, 7 Memorable Moments in Product Placement History that got me thinking, is product placement worth it?
I am not going to go through the entire list, even though it did have me laughing at some funny scenes from Wayne’s World and Talladega Nights, but I do want to discuss whether product placement still has value. Do brands benefit from having their products in shows and movies? Does product placement have an effect on consumer’s spending habits? There must be some type of return or companies wouldn’t continue to shell out large sums of money to get their products in these shows or movies and even video games now, I am just having trouble seeing it. Are consumers even paying attention to these products when they show up, do they care about what type of car the characters are driving or what type of beer they order in a scene? It seems that, as an audience, we are so used to product placement that we don’t pay any attention to it. Not to mention the second screen element of smart phones and tablets being used while watching. There isn’t a novelty to seeing products anymore; we expect that to happen. It actually stands out more when they use fake products. So if there is nothing special about seeing the products being uses, why do companies continue to pay big money for their product to be there, sometimes for a split second?
The answer must be… they still see a return. Obviously I do not have access to all the data companies are looking at, but they must have figures that show an ROI when they have products in movies or shows. One of the most notable product placements is Reese’s Pieces being used in ET. Reese’s saw an increase in sales of 65% after their product was in the movie. This doesn’t always happen, but even if companies get just a portion of that percent it could pay for itself; and you just might get lucky like Reese’s did and get a huge return from it.
I don’t see product placement going away any time soon and we may not pay attention to it like we used to, but as long as companies see a benefit and believe it has value, you will continue to see name brand products showing up in television shows and movies.
Bonus: For more on this I have to recommend The Greatest Movie Ever Sold, a 2011 documentary film about product placement, marketing and advertising in movies and TV shows, directed by Morgan Spurlock.
Also, one of my favorite product placement scenes: Wayne’s World
Author: Gary Balakoff