Back 3 minute read

Hidden In Plain Sight: Examples Of Product Placement Marketing

Hidden In Plain Sight: Examples Of Product Placement Marketing 3
minute
read

Subtly integrated into the narrative, product placement has made its mark as a potent force in the realm of advertising. This approach has gained traction due to its discrete and engaging nature, allowing brands to embed their products within media content seamlessly.

Once reliant on traditional methods, the marketing landscape has pivoted towards more ingenious tactics, with product placement being a key strategy. 37% of marketers indicated that they allocated a greater portion of their financial resources specifically towards incorporating products or services within programmes in 2021, in contrast to the preceding year. 40% even expressed intentions to augment such investments during 2022, according to the Video Advertising Convergence Report.

So, what exactly is product placement?

What Is Product Placement In Marketing

Product placement refers to the marketing strategy of positioning brands, products, or even services within entertainment content. Rather than creating separate advertisements, they are seamlessly woven into narratives, making them an integral part of the viewing experience.

Product placement marketing serves as a silent salesman, reaching out to potential customers. It is often seen as a more subtle and natural form to introduce or showcase a product without disrupting the audience’s experience, compared to traditional commercials or print ads.

evolution of product placement marketing

Evolution Of Product Placement In Marketing

Product placement marketing has come a long way, from the subtlety of a branded item in a movie scene to the conspicuous display of logos in music videos. Before we delve into the details of product placement, it is essential to understand what it means and how it has evolved over the years.

From strategically positioned Reese’s Pieces in Spielberg’s classic “E.T. the Extra-Terrestrial” to the ubiquitous Apple products gracing our favourite series, product placement marketing is an ingenious advertising strategy that has captured imaginations and consumer wallets alike.

The roots of product placement can be traced back to the late 19th century, with pioneers like the Lumière brothers subtly integrating Lever Brothers’ Sunlight Soap, a type of laundry soap, into their films. This strategic placement allowed the Sunlight Soap brand to gain exposure and create a positive association with cleanliness and hygiene in viewers’ minds. The Lumière brothers’ pioneering efforts laid the foundation for future product placement practices in the film industry.

However, it wasn’t until the mid-20th century that product placement began to influence consumer behaviour significantly. Since then, it has evolved with media advancements, finding a seamless home in today’s digital entertainment landscape. The United States remains the epicentre of the product placement market, accounting for 56% of global expenditure 2022, according to Statista. In that year, product placement revenue in the US grew by 15%, surpassing the global average and reaching nearly $14.8 billion.

These statistics illuminate the profound impact and effectiveness of product placement marketing, demonstrating why it has become an indispensable tool for brands seeking to engage consumers and drive sales.

advantages of product placement marketing

Benefits Of Product Placement In Marketing

Product placement presents many advantages to advertisers, making it a popular strategy in modern marketing.

1. Enhanced brand recognition

One of the main benefits of product placement is the exposure the brand or product gets by being featured in a high-profile piece of media, such as a popular movie, TV show, or video game. If the product is used by a beloved character or seen in a positive context, it can lead to positive associations with the brand. This can help to shape the perception of the brand and enhance its image in the eyes of the consumer.

For example, M&Ms implemented a virtual product placement strategy in five episodes of Bosch and Making the Cut on Prime Video, showcasing their well-liked Fudge Brownie variant through packaging integration. A brand lift analysis conducted by Kantar indicated that these placements successfully generated 6.9% increase in brand favourability

Product placement can also help a brand to reach different audiences that it may not reach with traditional advertising methods. This could include international audiences or specific demographic groups.

2. Increase in sales

The increase in brand recognition can also lead to a rise in sales. When viewers see their favourite characters using a product, it often sparks their interest and influences their buying decisions.

For example, Coffee Mate’s virtual product placement in three episodes of Leverage: Redemption on Freevee yielded positive results. A post-campaign brand lift study by Kantar revealed an increase of 11.9% purchase intent amongst the audience.

3. Counter ad-avoidance

Lastly, traditional advertising methods can sometimes be viewed as intrusive or disruptive. However, product placement seamlessly integrates the promotion into the entertainment content, providing a less disruptive and more subtle form of marketing.

Product Placement Marketing Examples

Product placement  has become a powerful marketing strategy utilised by brands across various forms of media. By seamlessly integrating products into the content, these placements leave a lasting impact on viewers and contribute to brand recognition and recall.

Let’s explore some real-life examples of successful product placement campaigns. Can you spot these famous brands on the screen?

1. Reese’s Pieces in “E.T. the Extra-Terrestrial”

One of the most iconic product placements in film history is the appearance of Reese’s Pieces in the blockbuster movie “E.T. the Extra-Terrestrial.” Including them in the storyline significantly boosted sales for the brand by up to 65%, according to Forbes. This successful partnership between the movie and the candy brand solidified the impact of product placement marketing on consumer behaviour.

2. Coca-Cola in American Idol

Besides movies, product placement can be used in reality TV shows as well. The long-running singing competition show “American Idol” has consistently integrated Coca-Cola products into its episodes. From prominently displaying Coca-Cola cups on the judges’ table to featuring Coca-Cola-branded studio setups and product placements during commercial breaks, the show effectively connects the brand with the excitement and energy of the competition, reinforcing Coca-Cola’s position as a refreshing and enjoyable beverage choice.

This example clearly highlights the power of product placement marketing in creating meaningful connections between brands and audiences. By strategically incorporating their products into compelling narratives and popular media, Coca-Cola successfully influenced consumer perceptions and behaviour, leading to increased brand exposure and ultimately driving sales.

3. Aston Martin in James Bond films

Similarly, the James Bond franchise has a long-standing relationship with the luxury car brand Aston Martin. The films feature Aston Martin vehicles, such as the iconic DB5, as the preferred mode of transportation for the famous spy. This strategic product placement marketing example simply reinforced Aston Martin’s image as a sophisticated and elegant brand due to its strong association with the thrilling and adventurous world of James Bond.

product placement marketing’s future

The Future Of Product Placement Marketing

The future of product placement  holds tremendous potential for brands and advertisers. As technology advances and consumer behaviour evolves, new marketing avenues are opening up to create even more impactful and immersive product placement experiences.

1. Streaming Platforms

As more consumers shift towards streaming platforms like Netflix, Amazon Prime, Disney+, these platforms could offer new opportunities for product placement. Streaming platforms also collect an enormous amount of user data, which can be analysed to understand viewing habits, preferences, and demographics. This in turn can help marketers to create more targeted and effective product placements.

2. Expanding possibilities with technology

As technology continues to evolve, the possibilities for product placement marketing are also growing.

New platforms like short-form video platforms like TikTok are emerging, offering fresh opportunities for product placement. Similarly, the rise of podcasting offers new opportunities for audio-based product placements. In fact, a survey conducted by Marketing Week in 2022 revealed that advertisers planned to allocate increased budgets to newer channels such as online video, social media stories, video streaming, and the metaverse, with average growth rates exceeding 60%.

In the digital age, product placement marketing has also evolved into a more advanced form: virtual product placement. This emerging trend allows brands to integrate their products into content even after it has been produced, offering a new level of flexibility and adaptability. Utilising advanced technologies such as CGI and digital effects, this strategy allows brands to strategically place their products within scenes or environments without physical presence.

3. The role of audience data in shaping the future

The future of product placement marketing also lies in the hands of data. As advertisers become more adept at understanding their audiences through data, they can better tailor their product placement strategies to appeal to specific demographics, making their advertising efforts more effective and efficient.

Learn more about other novel marketing strategies from our other articles, including embracing cross-cultural marketing and recognising the importance of culture, tips on using slang to connect with Gen Zs in your marketing copy, as well as using SMS marketing to send promotions, discounts, and other vital information to target audiences.

Soar With Product Placement Marketing

Product placement has proven its worth as a potent advertising strategy, and its significance will only grow as it adapts to new trends and technologies. From enhancing brand recognition to increasing sales, product placement benefits brands willing to invest in it.

While product placement’s bright future shines, it is only one aspect of an effective digital marketing strategy. If you’re keen to explore the options available to propel your brand’s online presence, consider checking out First Page’s range of digital marketing services. The blend of time-tested methods and innovative techniques is what your brand needs to stand out in the digital realm.

Suggested Articles