What we’re focusing on in this post is the fact the study makes reference to a few observations in an attempt to level the balance, by offering up a brief selection of reasons why product placement advertising may have its downsides.

One of these reasons is lack of control over how products are integrated into a scene. Daugherty and Gangadharbatla (2005) said that products may end up being used unethically or could be ignored, misused or criticised. “Advertisers must exert greater control over product or brand appearances to ensure their prominence,” says the study.

A second reason cited as a downside to product placement advertising is that marketers have little or no influence over how successful the campaign will be. “It is difficult to predict where to place brands for maximum positive exposure,” the study suggests.

“Marketers are increasingly pressured to be accountable for expenditures and results. Thus, while the use of product placement is growing and the positive effects of product placement have been established, it is important for the marketer to measure whether and to what degree the firm’s investment is worthwhile. However, there is little evidence on whether or to what extent these investments pay off,” says the study.

Fair points – but Arguments Fail when Product Placement is Digital

These could be considered fair points with regard to static product placement, where brands are integrated into storylines and scenes at script or director level. However, with digital product placement – where brands are placed retrospectively into a scene by digital means – the arguments fail.

By using digital product placement technology with integrated measurement and analysis tools, brands can take full control of their placements, and enjoy premium exposure.

ZoneSense is MirriAd’s unique system that seamlessly places branded imagery into existing content. And since November 2011, placements are accurately measurable thanks to the integration of a new analytics service. Information on exposure duration, position, integration level and orientation to the camera is all made automatically available, allowing the brand and content owner to be familiar with all aspects of a campaign: on demand and in advance, thus mitigating a brand’s investment risk. 

So the proof of the campaign performance – before and after – is in the analytics. And the control is in the hands of the brand. Downsides: consider yourselves challenged!

Oliver Noble’s video, ‘A Brief History of Conspicuous Product Placement in Movies’ runs a timeline on embedded advertising from its debut in a silent movie through to 47-brand-placing Transformers, and makes an interesting, if not slightly cynical, coffee-break watch. 

Fatty Arbuckle film first to use paid-for Product Placement 

The video reveals that the first documented, paid-for product placement advertisement appeared in a silent movie starring Fatty Arbuckle back in 1919. And that Hershey’s Chocolate used product placement in 1927 in ‘Wings’ – the first ever film to win an Academy Award for best picture. Even the Marx Brothers got involved in 1932 picture ‘Horse Feathers’ where Life Saver’s Candy made a timely appearance. 

And who could forget E.T.’s craving for Hershey’s Reece’s Pieces in Steven Spielberg’s 1982 blockbuster? Their £1million investment reportedly boosted sales by 65%, a memory Mars – who were given first refusal, and took it – would no doubt rather forget. 

The Future Backs Brands 

Mac and Me, The Wizard and Back to the Future in the late 1980s are considered by Noble as some of the first movies to have gone too far with product placement and cites, as does the rest of the world, Adam Sandler as the Oscar-winner when it comes to embedded advertising. 

Into the 21^st Century, and Noble’s video explains we’re seeing more brands than ever per movie; in 2005 a total of 35 brands were placed in The Island, from Cadillac to Xbox. And in 2009, this record was blown out of the water when a staggering 47 brand owners took advantage of the opportunity to feature in Transformers: Revenge of the Fallen.

“Creating a Positive Emotional Association with the Viewer” 

Noble may be slightly cynical in his coverage of a subject that clearly has its audience divided, but it is an interesting piece to watch nevertheless. Other spectators reporting their views on his video have voted in favour of product placement advertising, with one saying, “Watching a movie’s hero quench his thirst with a Dr. Pepper not only promotes brand recognition but it manipulatively tries to create a positive emotional association with the viewer.” (Political Remix Video.) 

Britney Spears’ video for hit ‘Hold it Against Me’ featured Plenty of Fish, Make Up For Ever and Sony. Lady Gaga’s video for ‘Telephone’ presented viewers with Virgin Mobile, Polaroid and of course, Diet Coke – aka the eccentric pop star’s ‘hair roller’.

Deborah Posner is an advertising instructor at The Art Institute of Fort Lauderdale. She says that since music audiences have migrated from TV to internet, advertisers have been able to glean more out of the available marketing space in music videos.

Permanent Advertising: Embedded Marketing Never Disappears

Because products placed in a music video never disappear, as long as the video exists, so does the advertising campaign. “[This permanence] is unlike most other ads which may be played before or after a video, or displayed alongside it only for a certain number of times or views. True embedded marketing does not disappear,” says Posner.

Music videos are particularly influential amongst a younger audience and so brands longing to woo the 18-35 year old demographic are taking full advantage. Posner says product placement promotes consumer identification, interaction and conversation around a brand.

Here is a selection of recent music videos using product placement advertising, including the infamous Gaga ‘hair roller’, courtesy of Diet Coke.

Seetharaman says that emerging concepts like product placement, viral internet campaigns, crowd sourcing and guerilla promotions will dominate in 2012 and beyond, saying: “Traditional expensive advertising is no longer effective given all the clutter, as well as the emergence of technologies, like digital video recorders, that block the ads from even being viewed, much less absorbed, by consumers”.

Transformers 3: A Product Placement Record, even by Hollywood Standards

On product placement in movies, Seetharaman said: “The movie Transformers 3 created a record, even by Hollywood standards, in terms of the number of brands that were ‘product placed’ within the movie. This will catch on in the future, although the concept of product placements goes back to the times of the Marx Brothers.”

The reason for the reemergence of product placement, says Seetharaman, is down to the lack of opportunity nowadays to reach a captive audience. With product placement, consumers have no choice but to take in the brand being advertised – they can’t simply switch over or fast forward. “In fact, product placements are also on the rise in sitcoms, video games, and other media for the same reason,” he says.

Here’s a round-up of the top 100 products placed in Transformers 3: