Presentation on theme: "Product Placement on Television"— Presentation transcript:
1 Product Placement on Television Film “Behind the Screens” focuses on product placement in movies;So this presentation will focus on product placement in television.In either case, why are we concerned about this? What’s the issue?Same as in buzz (stealth) marketing: if we’re being marketed to, we should be aware of that factSimilar in nature to issue with subliminal marketing (which we don’t cover in this class, but could)Many don’t think it worksStill, it’s been outlawed
2 Commercial Alert’s Request to the FTC and FCC for Guidelines to Require Disclosure of TV Product PlacementSpecifically, we’ll look at…
3 “…keep the commercial culture within its proper sphere, and prevent it from exploiting children and subverting the higher values of family, community, environmental integrity and democracy.”Commercial Alert is a non-profit organizations whose mission is to:
4 “Put simply, TV networks and stations are shifting advertising from commercial breaks to programming itself. They are inserting branded products directly into programs, in exchange for substantial fees or other consideration.”September, 2003 filed petitions with both FTC and FCC for regulationOf product placement.Claim is that…
5 Remote controls and TiVo enable viewers to avoid ads A substantial majority of viewers arefed up with advertising generally and on television in particularLooking for ways to avoid adsAdvertisers find embedded ads effective because viewers are caught off guardWhy? According to the CA petition…#3 but most importantly…Use American Dreams example here?Kraft cheese slicesoreos
6 Some programs so packed with placements they resemble infomercials But lack disclosure requirements of infomercialsParticularly problematic where children are involvedChildren more vulnerable to this influenceAre they “program length commercials”?So, what’s the problem?#1: For example, American Idol (referred to as “the highest-rated infomercial in television history”)
7 Product integration“a presence woven into the plotline—often across multiple episodes—accompanied at the very least by a supporting medial buy and, at best, by an integrated marketing and public relations campaign replete with a sweepstakes overlay and other consumer touchpoints”CA’s petition identified several different types of placement.The most common is what’s referred to as:
8 Examples CBS: Survivor Fox: American Idol GM, Reebok, TargetFox: American IdolFord, Coca ColaABC: Who Wants to be a MillionaireAT&TExamples from CA’s petition, not necessarily the most recent:Survivor 2005—Pringles (with trivia from previous shows on the chips)!American Idol —Coca Cola Red Room; Fords are built into some of the spotsMillionaire —”Let’s go to our friends at AT&T” for the “call a friend” lifeline
9 Extreme Makeover Home Edition The Apprentice Oprah Winfrey CSI MiamiExtreme Makeover Home EditionThe ApprenticeOprah WinfreyMore recent examples:GM donated Hummers for CSI MiamiSears paid $1 million for commercials plus verbal and visual referencesApprentice: Entire episodes revolve around a single productOprah’s give-away in 2004 of 276 cars (every person in audience) cost GM $8 millionbut you can’t fast forward through that!
10 Product placement is growing Nielsen Media Research and Advertising age track placementsApproaching $1 billion in revenueSurvey by Association of National Advertisers indicated 63% took part in “branded entertainment”Networks planning shows that eliminate traditional commercials altogetherAccording to CA’s petition:Spike TV planning reality show called “invasion Iowa” in which guy wanders around an Iowa town trying to get people interested in products whose corporate owners have paid to be included.
11 Product placement works Reece’s Pieces/ET65%RayBan/Risky BusinessTripled in one month“Successful product placements are more effective than ads at generating recall, promoting brand awareness and ultimately, increasing sales at a fraction of the cost of traditional advertising.”#1: The granddaddy of product placement:#3: One agency’s website says:
12 “When somebody is jumping up and down because they have a beer as a reward, and they make it seem like it’s the greatest liquid they ever drank in their lives and they’re real people—that probably is more effective than having some model saying ‘Hey, drink Budweiser.’ It can be very effective.”Les Moonves, CBS President, talking about Survivor:Jumping up and down for Pringles is a bit less believable
13 Smoking-related health problems gambling Evidence suggests product placement may be implicated in epidemic of marketing-related diseases in childrenObesityType-2 diabetesAlcoholismSmoking-related health problemsgamblingThere is, however, a darker side to all this, according to CA’s petition:Note the concept of “marketing-related diseases”We saw this earlier talking about advertising to childrenWhat are they, according to CA?
14 “Is it totally coincidental that the products associated with the epidemic of marketing-related diseases are the very ones that the marketing industry has been pushing through stealth ads—junk food, soda pop, beer, alcohol, and gambling?”The petition asks:
15 Examples Soda Fast Food Coke in American Idol and Young Americans Pepsi in Pepsi Smash and The RunnerFast FoodMcDonald’s in Beg, Borrow and Deal, Nashville Star, Big Brother and BaywatchThese are the examples from the petition; you can add lots more current examples:You can add Oreos in American Dreams
16 Beer Tobacco Gambling Anheuser-Busch in Survivor I and II Rolling Rock, Labatt Blue and Dos Equis in The Best Damn Sports Show PeriodTobaccoGamblingCasinos in Fear Factor and Las Vegas20% of adolescents have gambling problemAs we saw in an earlier class, beer is often placed in shows popular with teens:We’ll look at tobacco next classGambling is becoming a serious problem for adolescents:
17 CA’s request to the FTC“Investigate current TV advertising practices regarding product placement and other embedded ads, and take the steps necessary to restore some honesty and fair dealing to the presentation of these ads, by requiring concurrent disclosure that the ads are, in fact, ads.”So, what did CA ask the FTC to do?Didn’t define “concurrent disclosure” in the FTC petition, but did so in the FCC petition
18 CA’s request to the FCC“Product placements should be identified when they occur. This should be in addition to disclosure at the outset of a program. Disclosure should be large enough, and kept on the screen long enough, so that it can be read and understood.”More specific than the FTC petition:
19 Concurrent disclosure should read ‘Advertisement’ when the product placement is on the TV screen Disclosure at the outset of the program should be in plain English, such as‘This program contains paid advertising for…’
20 Freedom to Advertise Coalition Interrupting television programs with ‘pop up’ disclosures is ‘impractical and border on the ludicrous’Pose a threat to artistic freedomNoted that FTC rejected similar proposal in 1992 from Center for the Study of Commercialism regarding placement in moviesHow do you suppose the industry responded?Objections range from practical to legal to philosophical:
21 FTC’s responsePrincipal reason for identifying an advertisement is that consumers give more credence to objective claims from third parties than from advertiser itselfCited case involving infomercial for BluBlocker sunglassesrepresented as investigative reportimplied reporting objective product dataFTC responded on February 10, 2005Still no word from the FCC
22 CA’s complaint does not suggest product placement results in consumers giving more credence to objective claims about product attributesIn product placement few objective claims appear to be made about performance or attributesThus no rationale for requiring disclosure that advertiser paid for placement#2: in fact….