TV Product Placement
Product Integration in TV Shows and Other Media is Growing Rapidly
Critics call product placement stealth and subliminal advertising, but Tivo, reality shows and Ben Silverman are helping it to grow by millions of dollars per year.
The business of weaving products and services into the scenes and scripts of movies and television shows is variously called product placement, product integration or "stealth advertising," depending upon what segment of the television, movie or advertising industry is speaking.
There is controversy over how and when product placement started, as well as how effective and ethical it is. But there is general agreement that it is growing by millions of dollars annually.
In a November 2005 white paper on product placements, The Writers Guild of America referred to the practice as "stealth advertising" and said it "raises serious ethical questions." It added that "the public has a right to be informed that they are viewing de facto subliminal advertising—and creative artists have a right to exercise their creative voices when required to participate in such advertising."
Supporters Say Product Placement Is Highly Effective Marketing
The placement business simply involves inserting a product or service into the script or scene of a television show or other media, usually for a price negotiated with the network, producer or script writer. Promoters claim this is a highly effective method of marketing the product or service at a fraction of usual advertising costs.
Eclipse Worldwide, a product placement firm, already claims to have placed products that have produced the equivalent of over $1 billion in advertising. That measurement might lift some cynical eyebrows in the marketing industry and is not backed with any figures on how much the companies actually paid for those placements.
But no one seems to doubt that the innocent-appearing product exposure in a show has considerable marketing value.
Three Types of Product Placement Listed
On its website, Monkey Junction Entertainment, a firm that specializes in product placements, lists three types of product placements:
- The simple placement of the product in a TV or movie scene.
- Mention of the product or service by one of the show’s actors or actresses.
- Use of the product or service by one of the show’s actors or actresses.
The price and value of the placement are negotiated on such factors as the visibility of the product, the length of time it is visible and the cost and popularity of the show and the actors involved.
Tivo Stimulated Growth of Product Placements
Several factors were increasing growth of the business early in 2008:
1. The growing use of Tivo and other digital recording units drove many companies from commercials to product placements. Viewers can easily skip the commercials but can not skip placements within the programs.
2. The rise of reality shows such as American Gladiators and American Idol encouraged the growth of product placements. As Stuart Elliot wrote in the New York Times on January 23, 2008, it is easier to integrate products and services into reality shows because their casts are more open to the placements than professional actors and writers.
On its website, Eclipse mentions one reason actors may not be fond of the placements: "Iconic actors are seen by millions using your products without paying those exorbitant endorsement fees." Also, viewers are more likely to accept those placements in reality show situations than in a scripted show where the placement is bound to seem more contrived.
3. The writers strike in 2007 and 2008 increased the number of reality shows and consequently the opportunities for product and service placements.
Ben Silverman Brings More Product Placement Support to NBC
4. Ben Silverman, a well known advocate of product placements, was appointed co-chairman of NBC Entertainment in early 2008. Mediaweek said on January 28, 2008, that some agency execs considered Silverman "possibly the most advertiser-friendly exec to become head of programming at a broadcast network."
Rino Scanzoni, chief investment offier at GroupM, added that Silverman "wants to make money. He’s my kind of guy."
