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2010-01-17 BACK
Product Placement on the Increase
Product Placement on the Increase This article originally appeared in the Texarkana Gazette on January 17, 2010 Dr. Patricia Humphrey, Associate Professor of Marketing, Texas A&M-Texarkana College of Business Just imagine if you woke up tomorrow morning and there was no more advertising. You could watch your favorite shows, listen to the radio and read your magazines and newspapers without being bombarded by someone trying to sell you something you don't want or need. You could surf the Internet and there wouldn't be any ads or pop-ups. Life is getting better already…..except for one tiny problem; there wouldn't be any television programs, newspapers, radio or magazines without advertising dollars. The advertising model supports most forms of entertainment and the cost to you is just a few minutes of your time spent viewing, listening to or reading an advertisement. The relationship between viewer and advertiser has been forged over the years with advertisers covering the costs of programming and viewers enjoying free content. Overall, it's been a mutually rewarding relationship. However, the relationship is becoming strained, especially in television. Advertisers are still supporting your favorite TV shows through 30 second commercials, but increasingly viewers are fast-forwarding through the commercials using their TiVo or DVR recorders. In response, networks and advertisers are increasing the use of product tie-ins, either through product placements or product integration. You've probably already noticed the increased use of product placement in prime time. Whether it's the red Coco-Cola cups prominently displayed in front of the American Idol judges or two of the characters on Fox's Bones waiting in line to see the movie Avatar, product placement is more prevalent today than it was ten years ago. Product placement has evolved from a strategically placed product sitting on a table to product integration with the product being woven into the storyline. Now, instead of just seeing the product in the foreground, the product is becoming part of the show. The placement often appears seamless in reality shows such as when Jillian shows a contestant on NBC's The Biggest Loser how to store food in Ziploc plastic bags or when ABC's Extreme Makeover: Home Edition uses Sears' branded tools and appliances. However, the waters are a little murkier when products are integrated into television sitcoms and dramas. Most studies show that product placement is most effective when it adds to the development of an established character or the storyline. It may add to the storyline for Agent Gibbs in CBS's NCIS to drive a Dodge Charger and drink Starbuck's coffee, but when the lead character in CBS's Ghost Whisperer is given a new GMC Acadia and her young son exclaims "we can carpool, with my whole soccer team" while the camera pans the back seat just like a commercial, the placement seems contrived and out of place. After critics panned ABC's Desperate Housewives for blatant product placements last season, they tried a slightly different tactic. The show's writers wrote an eight-part faux mini-series highlighting Sprint's Palm Pre full of everything that you've come to expect from the show; betrayal, adultery, and murder. For eight weeks during the fall season, the one minute episodes aired during Desperate Housewives ending with a Mary-Alice like narration that mentioned "The Now Network". Subway's product integration in NBC's critically acclaimed series Chuck is credited for the renewal of its third season. Subway's $5 footlong had been prominently displayed in one of the episodes last season. When NBC threatened to cancel the show, loyal fans started a grassroots campaign aimed at Subway by purchasing $5 footlongs the night the finale aired. Subway rewarded the fans by becoming a major sponsor of the show's third season. Not all product integrations are as successful, though. For product integration to be effective, the product and the show's content must be a natural fit. Case in point: last fall Microsoft announced plans to integrate Windows 7 into a Family Guy variety special with no commercial breaks, ads or network promotion. The variety special was to feature all of Windows 7 unique attributes within the context of the show. However, after viewing an early version of the show, Microsoft executives backed out, realizing they didn't want their product associated too closely with the show's racy content. Product placement is not a new phenomenon. Although some mention the placement of Reese's Pieces in the movie E.T. as the beginning of product placement in movies, the first movie product placement was actually filmed in 1896 in Washing Day in Switzerland where two cases of Lever Brothers Sunlight Soap were strategically placed in front of two women washing clothes. In 1925, product placements in movies inspired a New York Times editorial denouncing the practice as "sneaking onto the screen in dark and devious ways." In the early 50's, products and television shows coexisted, often with the product as part of the show. Following radio's model of using characters as pitchmen, early television shows like Burns and Allen incorporated the sponsor's product into the show. Those who can remember George and Gracie back in the 1950's, may remember Carnation milk took center stage when Gracie served it on a silver platter (you can see the ad on YouTube). Then, as television became more popular, there was resistance on the part of the networks to include product placements within the show itself because the amount of time allotted for commercials was limited by government regulation and product placements reduced the commercial time available for sale. By the mid 1980's, deregulation of the broadcast industry allowed for increased time for commercials and product placements began slowly making their way back into television shows. Critics such as Commercial Alert and the Free Press have blasted the use of product placements and have petitioned the FCC to look into new rules and regulations. They argue that product placements are deceptive because viewers do not always realize they are watching what is tantamount to a paid advertisement disguised as an integral part of the show. They advocate for a disclosure that is similar to the disclosures in political ads instead of the small print used in the rolling credits at the end of a program. In response, the FCC began an investigation into product placement in 2008, but since then the chairman and one of the commissioners have left the FCC leaving the investigation in limbo. Today more than 30% of American households have a DVR and that number is expected to increase to 50% by 2014. This has advertisers worried about who will be left to watch their ads. As advertisers look for new ways to engage viewers, you can expect to see more innovative and creative product placements in your favorite television shows. Patricia Humphrey, D.B.A, is Associate Professor of Marketing in the College of Business, Texas A&M University-Texarkana.
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Product Placement on the Increase
Product Placement on the Increase This article originally appeared in the Texarkana Gazette on January 17, 2010 Dr. Patricia Humphrey, Associate Professor of Marketing, Texas A&M-Texarkana College of Business Just imagine if you woke up tomorrow morning and there was no more advertising. You could watch your favorite shows, listen to the radio and read your magazines and newspapers without being bombarded by someone trying to sell you something you don't want or need. You could surf the Internet and there wouldn't be any ads or pop-ups. Life is getting better already…..except for one tiny problem; there wouldn't be any television programs, newspapers, radio or magazines without advertising dollars. The advertising model supports most forms of entertainment and the cost to you is just a few minutes of your time spent viewing, listening to or reading an advertisement. The relationship between viewer and advertiser has been forged over the years with advertisers covering the costs of programming and viewers enjoying free content. Overall, it's been a mutually rewarding relationship. However, the relationship is becoming strained, especially in television. Advertisers are still supporting your favorite TV shows through 30 second commercials, but increasingly viewers are fast-forwarding through the commercials using their TiVo or DVR recorders. In response, networks and advertisers are increasing the use of product tie-ins, either through product placements or product integration. You've probably already noticed the increased use of product placement in prime time. Whether it's the red Coco-Cola cups prominently displayed in front of the American Idol judges or two of the characters on Fox's Bones waiting in line to see the movie Avatar, product placement is more prevalent today than it was ten years ago. Product placement has evolved from a strategically placed product sitting on a table to product integration with the product being woven into the storyline. Now, instead of just seeing the product in the foreground, the product is becoming part of the show. The placement often appears seamless in reality shows such as when Jillian shows a contestant on NBC's The Biggest Loser how to store food in Ziploc plastic bags or when ABC's Extreme Makeover: Home Edition uses Sears' branded tools and appliances. However, the waters are a little murkier when products are integrated into television sitcoms and dramas. Most studies show that product placement is most effective when it adds to the development of an established character or the storyline. It may add to the storyline for Agent Gibbs in CBS's NCIS to drive a Dodge Charger and drink Starbuck's coffee, but when the lead character in CBS's Ghost Whisperer is given a new GMC Acadia and her young son exclaims "we can carpool, with my whole soccer team" while the camera pans the back seat just like a commercial, the placement seems contrived and out of place. After critics panned ABC's Desperate Housewives for blatant product placements last season, they tried a slightly different tactic. The show's writers wrote an eight-part faux mini-series highlighting Sprint's Palm Pre full of everything that you've come to expect from the show; betrayal, adultery, and murder. For eight weeks during the fall season, the one minute episodes aired during Desperate Housewives ending with a Mary-Alice like narration that mentioned "The Now Network". Subway's product integration in NBC's critically acclaimed series Chuck is credited for the renewal of its third season. Subway's $5 footlong had been prominently displayed in one of the episodes last season. When NBC threatened to cancel the show, loyal fans started a grassroots campaign aimed at Subway by purchasing $5 footlongs the night the finale aired. Subway rewarded the fans by becoming a major sponsor of the show's third season. Not all product integrations are as successful, though. For product integration to be effective, the product and the show's content must be a natural fit. Case in point: last fall Microsoft announced plans to integrate Windows 7 into a Family Guy variety special with no commercial breaks, ads or network promotion. The variety special was to feature all of Windows 7 unique attributes within the context of the show. However, after viewing an early version of the show, Microsoft executives backed out, realizing they didn't want their product associated too closely with the show's racy content. Product placement is not a new phenomenon. Although some mention the placement of Reese's Pieces in the movie E.T. as the beginning of product placement in movies, the first movie product placement was actually filmed in 1896 in Washing Day in Switzerland where two cases of Lever Brothers Sunlight Soap were strategically placed in front of two women washing clothes. In 1925, product placements in movies inspired a New York Times editorial denouncing the practice as "sneaking onto the screen in dark and devious ways." In the early 50's, products and television shows coexisted, often with the product as part of the show. Following radio's model of using characters as pitchmen, early television shows like Burns and Allen incorporated the sponsor's product into the show. Those who can remember George and Gracie back in the 1950's, may remember Carnation milk took center stage when Gracie served it on a silver platter (you can see the ad on YouTube). Then, as television became more popular, there was resistance on the part of the networks to include product placements within the show itself because the amount of time allotted for commercials was limited by government regulation and product placements reduced the commercial time available for sale. By the mid 1980's, deregulation of the broadcast industry allowed for increased time for commercials and product placements began slowly making their way back into television shows. Critics such as Commercial Alert and the Free Press have blasted the use of product placements and have petitioned the FCC to look into new rules and regulations. They argue that product placements are deceptive because viewers do not always realize they are watching what is tantamount to a paid advertisement disguised as an integral part of the show. They advocate for a disclosure that is similar to the disclosures in political ads instead of the small print used in the rolling credits at the end of a program. In response, the FCC began an investigation into product placement in 2008, but since then the chairman and one of the commissioners have left the FCC leaving the investigation in limbo. Today more than 30% of American households have a DVR and that number is expected to increase to 50% by 2014. This has advertisers worried about who will be left to watch their ads. As advertisers look for new ways to engage viewers, you can expect to see more innovative and creative product placements in your favorite television shows. Patricia Humphrey, D.B.A, is Associate Professor of Marketing in the College of Business, Texas A&M University-Texarkana.
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