Product Placement set to Flood China Movie Market

Mar 13

China’s national ban on commercials during TV dramas drew much attention when it hit the headlines in January this year. And now, perhaps as a result, all eyes seem to be on a relatively new concept in Chinese marketing – product placement.

Mobile security software firm NetQuin is set to feature its products heavily in upcoming gangster film, Du Zhan; a lucrative move in the already-booming mobile internet industry.

The Rise and Rise of Product Placement in China

In China, product placement has only been used frequently since the early 2000s. However, the industry is now expanding at up to 40 per cent every year, banking an estimated $10 million in profit in 2010. Hit Chinese TV series such as Meteor Shower and Unbeatable feature extensive brand placement, the latter showing obvious plugs for anti-dandruff shampoo, Clear. And far from being a hindrance to the popularity of the shows, the clever combinations of star actors, quality production and sophisticated ways of weaving brands in with plot has boosted the popularity of the shows, with Unbeatable 2 garnering an amazing 100 million online hits in two weeks.

‘The Advertisement King’ Breaks Box Offices Nationwide

It’s not just Chinese TV shows cashing in either. Famed Chinese director Feng Xiogang is such a fan of product placement advertising that he won himself the nickname of ‘The Advertisement King’ for his use of it in his films. 2004’s award-winning World Without Thieves covered its entire cost of production with earnings from product placements, while 2008’s If You Are the One and its 2010 sequel featured over 35 brands. The films smashed the box office, proving Chinese audiences are certainly not fazed by embedded advertising and don’t let it stop them enjoying a good film.

Upcoming film, Color Me Love, is set to feature upmarket brands such as Apple, Diesel, Cartier and Versace, showing the potential of product placement to advertise upscale products in China, where over half the country lives in rural areas. The increasingly popular method of advertising Chinese products seems to be just as popular in Hollywood, with hit US film Transformers: Dark of the Moon heavily featuring Chinese brands, such as Lenovo laptops, TCL electronics, Metersbonwe apparel and dairy giant Yili’s Shuhua milk.

Chinese Audiences Receive ‘Good Impressions’

Whilst Chinese audiences are not oblivious to product placement advertising, they’re certainly not put off by it. Creative moves to push brand awareness with product placement advertising are increasingly commented on positively across social media networks, with movie-goers describing ‘good impressions’ of the products. The noticeably positive reaction to the brands has been more than accounted for in sales, with Clear shampoo’s market share rising significantly with the broadcast of TV series, Unbeatable.

Product placement advertising in China has huge commercial potential to promote everyday products as well as new tech or luxury brands. With the new limitations on the airing of commercials, it’s likely that embedded advertising will be an innovative solution: one that will continue to go from strength to strength in Chinese media.

Vespa, Wrigley’s, and National Geographic: Where Product Placement REALLY Started

Feb 25

Many consider product placement in films and TV shows to be a new phenomenon. You may be surprised to learn then that it actually dates back to around the end of the 19^th century.

We mentioned a few posts back that the first paid-for product placement advertising appeared in a 1919 silent film starring Fatty Arbuckle. But the fact is, the starting point pre-dates even this example.

The Earliest Days of Product Placement

In 1896 French film directors the Lumière brothers collaborated with Swiss businessman François-Henri Lavanchy-Clarke on a short film called ‘Défilé du 8eme Bataillon’ (‘Parade of the 8^th Battallion’). Lavanchy-Clarke agreed to publicise and distribute the film in exchange for advertising space. The logo of one of his products, Sunlight Soap, briefly appears in the film on the side of a wheelbarrow; an example of product placement as old as cinema itself.

As cinema progressed, so did brand placement. In 1931, Fritz Lang’s famously dark offering ‘M’ prominently featured an ad for Wrigley’s PK chewing gum. The ad is in shot for around thirty seconds and stands in sharp contrast to the sinister tones of the picture – although it’s certainly not something any viewer could forget!

National Geographic Profits from Brand Placement

Into the 1940s and It’s a Wonderful Life made history with its life-affirming story, now widely considered to be one of the greatest films ever made. Lesser known is its use of product placement. In a scene where the younger version of Jimmy Stewart’s character talks of wanting to become an explorer, he’s seen holding a copy of National Geographic magazine. The magazine did very well from its placement in the heart-warming and memorable film: a truly great moment in product placement history.

‘New Age’ Product Placement

America’s first full-length cinematic foray into Italy came with 1953’s Roman Holiday, starring Audrey Hepburn having a whale of a time on her Piaggio Vespa scooter. The product placement proved very lucrative for the brand, with 100,000 sales for the Vespa scooter resulting.

But it was the highest grossing film of the 1950s – The Greatest Show on Earth – that really held the front page when it came to brand placement. The film was set entirely within the Ringling Bros and Barnum & Bailey Circus. The use of the circus was pivotal to the plot, with numerous instances of the name cropping up during the film. And this some thirty years before E.T. which many refer to as ‘early’ product placement!

Product placement has blurred the lines between story and advertisement in popular films for over a hundred years. From its beginnings in the earliest examples of cinema, all the way through to modern pictures, the story of embedded advertising continues to this day and will be one to watch to see how it develops into the next decade.

Shot of Product Placement for Smirnoff as Brand Partners with Madonna

Feb 19

Smirnoff has joined forces with Madonna in the latest music video product placement deal.

The star’s video for latest single ‘Give Me All Your Luvin’ – the debut single from her forthcoming album ‘MDNA’ – premiered on YouTube in early February. Smirnoff vodka lines up as the drink of choice in the video’s bar scene.

Smirnoff’s Nightlife Exchange Project Dance was a global Facebook competition that set out to seek a dance star to join Madonna on her next tour. US dancer Lil Buck was finally chosen after a dance-off at New York City’s Roseland Ballroom. He joined the pop star’s dance ensemble at the Bridgestone Super Bowl Half-time Show earlier this month.

Simon Burch is the global brand director for The Smirnoff Co. He said: “Partnering with Madonna has been extraordinary and we are thrilled to deepen the partnership supporting the release of MDNA and ‘Give Me All Your Luvin’.”

Brands are increasingly including product placement in music videos in their advertising armoury thanks to the ease of targeting their prime audience.

Streamed TV Proves a Hit – with Traditional Advertising Surely its Casualty

Feb 12

Streamed entertainment is proving to be a popular hit with UK viewers. But what does this mean for advertisers now that more people are skipping the ads? Step in Product Placement: the advertising alternative that won’t become a casualty of the fast-forward button.

ITV Player, BBC iPlayer, 4oD and other TV and film streaming services are, according to KPMG research, becoming more ‘mainstream’ in the UK, with more users willing to pay for them.

The audit and tax advisory giant’s bi-annual Media and Entertainment Barometer, based on a YouGov survey of just over 2,000 Britons aged 16-plus, revealed the popularity of streamed TV, especially amongst the younger generation. 90% of those surveyed in October 2011 were aware of BBC iPlayer; 79% had heard of ITV Player and 65% knew of LoveFilm. 68% actually used the BBC’s streaming service, a rise of 5% in six months, and 36% were regular users of ITV Player, up 4% in six months.

Britons Increasingly Willing to Pay for Streamed Entertainment

The study showed that Britons are increasingly willing to pay for streamed entertainment; 30% will fork out for paid TV content and 64% for films.

David Elms, head of media at KPMG said: “Not only is awareness and usage of streaming high, but willingness to pay for content has increased too.”

So with the rise in popularity of ‘viewer-controlled’ entertainment, brands will surely be seeking an alternative advertising strategy that is safe from the fast-forward button. This is where the benefit of embedded advertising comes into its own: where brands become part of the entertainment, rather than a tea-break phenomenon, or a casualty of the ad-break skipper.