Physical vs Digital: Product Placement Moves On

Apr 07

Product placement has given brands the chance to integrate into popular films and TV shows for decades. It’s an innovative and highly successful advertising medium, although traditionally it’s meant agencies liaising with directors and producers to secure adequate representation in broadcasts. A time consuming affair, and one that calls for quite some investment – and patience.

Smaller brand owners have been forced to forgo this method of promoting their products because of the cost and time involved in realising a return. But, thankfully for the advertising underdog, things are changing.

Digital product placement is making an impactful debut. Thanks to new technologies, brands can be placed seamlessly within broadcast content retrospectively – and there are many benefits.

It’s all in the Timing

Through digital insertion, brands can be embedded within existing content, rather than having to be physically included at script or production stage.

It can be anything from three to nine months before a TV programme is aired, and much longer for films.

In terms of products, trends and real-world events, this period of time is very significant and the impact of a particular brand name on its chosen audience may be lessened as a result. Digital insertion makes it possible for advertisers to use timing to great effect when choosing how to promote their products. Lexus – an official partner of the Melbourne Cup Carnival in 2011 – provided an example of this by superimposing an image of its logo on a railing in a scene from Winners & Losers, where the characters were at the races.

An Open Market

As digital insertion can be completed within a matter of days, greater flexibility and choice is given to the advertiser who is free to make last-minute decisions regarding product placement. There is also a reduced need for a particular programme to have only one or two long-term sponsors, as digital product placement can open up any number of revenues for other brands that may not want to commit to a 13-week series. This opens up the market to smaller companies with tighter marketing budgets, who will be able to get involved with a more flexible form of product placement advertising which was not previously accessible.

Making the Impossible Possible

Flexibility is a huge benefit of digital product placement advertising, as networks will now be able to sell in-programme ad placement to several different advertisers based on location. Advanced video technology can be used to seamlessly replace any product being used in a movie or TV show, including items being held or worn, even as the actor is moving. This opens up any number of possibilities for advertisers to market their products to different audiences, and networks will even be able to ‘resell’ product spots in their TV shows to different brands after the show has aired for their online catch-up services.

As the popularity of digital insertion grows, it won’t be long before Hollywood et al produces its films with product placement in mind from the earliest stages. Films will be designed specifically to support digital post-production product placement, by providing the actors with items (such as soft drink cans) in solid colours, making it a simple process to overdub a brand later on.

The possibilities for digital insertion are infinitely more open than with physical product placement, making the technology an exciting new move in embedded advertising.

Study’s Downsides to Product Placement Challenged by Digital Technology

Jan 23

A Journal of Management and Market Research study: Product placement Effectiveness: Revisited and Renewed, makes an interesting and balanced read across the subject of product placement, and throws up some statistics worthy of note which we’ll cover in a future blog.

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!