OF PRODUCT PLACEMENT ENDORSEMENTS:
Only form of advertising that has a diminishing cost due to its longevity-
theatres, television, cable, videos and/or syndication. However, the total
number of audience impressions multiplies.
Average 30-second spot costs $50,000-$400,000+ production,whereas, product
placement costs a fraction of that.
Awareness for new products/brands/services.
Alternative uses/situations for a product/service.
Captive audience because there is no channel surfing like during a commercial.
Product Placement is an effective strategy to gain exposure and promote
products to the general public.
When the long-term nature of Product Placement is acknowledged, it can
strengthen brand name recognition and serve as long-term reminder advertising.
Product Placement should be viewed as part of a total marketing plan in
which it complements other techniques in the promotional mix.
Product Placement is a form of advertising that catches viewers while
their defenses are down therefore they are not as critical to the advertisement.
When Product Placement is encountered in a particular television show
or film it implies that the character / stars working on the show endorse
that particular product, whether they mention it by name or physically
interact with it in some manner. The placement links the stars to the
products. An implied or perceived endorsement is perhaps one of the most
important vehicles by which corporations can hope to transfer a message
to the audience through a placement. Product Placement may be one of the
only avenues some companies have to get their product / service in the
hands of a big name actor or actress.
APPRECIATION OF REALISM:
Due to Television shows and Films perceived realism, products seen in
these mediums have higher credibility than that of paid advertisements.
Placing brand name products / services within a TV show or film gives
them an intensified since of realism. Product Placement strengthens the
program's union / link to real life. Product Placement also adds realism
and authenticity to scenery.
COST REDUCTION TO CORPORATE MARKETERS AND STUDIOS / PRODUCTION COMPANIES:
In regards to the Studios and Production Companies, it offsets production
costs. Products and / or services are provided free of charge to the Studios
and Production Companies. The Departments of props, set decorations, wardrobe
and transportation can save a sizeable amount of money by using Product
Placement agencies. If there were no placement agencies, these departments
would be forced to buy or rent these items.