BRANDED ENTERTAINMENT Vicki Enteen

The rapid growth of branded entertainment over the past few years has made it an important part of integrated marketing communications.

Branded entertainment is a form of advertising that blends marketing and entertainment through television, film, print, musical talent, and technology.

The goal of branded entertainment is to use entertainment media to gain consumers attention and exposure to products and/or brands.

PRODUCT PLACEMENT A continuously growing phenomenon Some product placements are free or provided in exchange for trade – estimated at 70% for trade. Placements have moved from traditional media to alternative media.

Among the reasons for its growth: --personal video recorder growth allowing consumers to increasingly avoid commercials --need to integrate elements of entertainment into advertising --consumer changes in lifestyle and media consumption.

NOT A NEW PHENOMENON Product placements have existed for many years, with products integrated into TV soap operas as early as the 1950s.

WHY USE PRODUCT PLACEMENT? Consumers find it less intrusive than ads Less negative reaction than ads Association with a popular program, film, or celebrity can enhance product image Gen X & Y more accepting of placements

WHY USE PRODUCT PLACEMENT? For international brands, many major movies, TV shows, music videos, & video games reach worldwide markets

GETTING FREE PRODUCTS For prop masters, set dressers, and stylists, budget pressures often dictate the need to get free props. As costs of marketing major films skyrockets, studios increasing look for partnerships to share costs.

THREAT OF GOVERNMENT REGULATION In some countries, industry watchdogs are calling for more regulation of placements because they blur the lines between advertising and programming and therefore may be deceptive.

NEW MEDIA FOR PRODUCT PLACEMENTS Music videos (Lady Gaga was the first) Video games Books Live theatre and opera Etc.

BRAND INTEGRATION The brand is deeply integrated into the script of the TV show or movie Thanks to the proliferation of cable media channels and websites The hit movie ET was perhaps the first

MORE THAN JUST A PLACEMENT Successful brand integration programs go beyond showing the product in the film or TV show. For example, in Up in the Air, brands like Hilton Hotels and American Airlines were promotional partners, actively promoting the film.

ADVERTAINMENT Creation of video and/or music content by an advertiser in an attempt to entertain viewers while advertising their product. Can include interviews, music videos, behind-the- scenes footage, live performances, etc.

CONTENT SPONSORSHIP Brands sponsor programs in exchange for product placements, integration and promotions. Some advertisers create spots that reflect the TV shows plotlines. For example, IKEA created an Internet-only TV show about an IKEA employee.

VIDEO ON DEMAND (VOD) VODS are specialized content programs offered through cable TV networks that are developed by advertisers and provided to the cable operators free. Advertisers can buy placements, commercials, and/or virtual signage.

ADVERTORIALS Creation of newspaper and magazine sections that look like editorial features but are actually paid content created for advertisers.

INFOMERCIALS A form of paid television programming in which a particular product is demonstrated, explained and offered for sale to viewers via a toll-free number.

Can cost as much as $3 million, plus up to $500K for time slots on cable and satellite systems, local TV channels. Feature studio audiences and celebrity hosts to simulate a real talk-show format Have gone upmarket recently (e.g., Lexus) Very successful in Asia

TELESHOPPING Infomercial concept extended further by home- shopping channels like QVC & HSN in US, TV Shop & HOT in Europe 24/7 programming for product demonstrations and selling Multibillion-dollar industry worldwide Now expanding via Internet

INTERACTIVE TELEVISION ITV (interactive TV technology) being introduced into more households worldwide. Allows TV viewers to interact with program content More available in Europe than US Remote buttons allow viewer to order products, change camera angles, vote during audience participation shows, order free samples

SPECIAL ADVERTISING SUPPLEMENTS Special sections of newspapers and magazines filled with very specific editorial content that supports ad space for advertisers related to that content.

ON THE RED CARPET Products given to celebrities are a powerful form of product placement (PR). In addition to traditional TV, music and movie stats, other celebrities promoting products have included Pope Benedict XVI (Geox red shoes, Serengeti sunglasses, Mercedes-Benz customized, bullet-proof SUV

ADVANTAGES OF BRANDED ENTERTAINMENT Exposure: reach large audiences, long exposure time, attentive viewers, impossible to eliminate like TV ads Opportunity to target specific audiences Frequency: opportunity for repeated exposures Support for other media: cross-promotion of product and movie tie-in across multiple media venues

Source association: positive associations betweem brand and celebrity can lead to more sales Cost: can range from free to millions of euros/dollars, but CPM can be very low Recall: consumer recall is higher than for TV ads Bypassing regulations: getting around restrictions on products that cant be advertised on TV

Acceptance: Consumers tend to evaluate product placements favorably, although this varies by generation Targeting: Content sponsorships and VOD may effectively reach potential customers with a strong interest in the subject matter

DISADVANTAGES OF BRANDED ENTERTAINMENT High absolute cost: can be high because of increased demand by brands, and rising emphasis on cross-promotion by studios Time of exposure: no guarantee viewers will notice product Limited appeal: no opportunity to discuss product benefits or providing detailed information, limited product demonstration, indirect endorsement

Lack of control: advertiser has no say over when and how often product is shown (e.g., delay in movie opening, cancelled TV series, segments edited out Public reaction: viewer anger over lack of barriers between program content and commercials, intrusive placements leading to negative attitudes toward brand

Competition: increased brand competition for product placements leading to higher costs Negative placements: appearing in movies disliked by viewers or in unfavorable situations Clutter: an overwhelming number of placements and integrations can lead to clutter and loss of effectiveness

ETHICAL ISSUES Consumers are being marketed to subliminally without their consent.

MEASUREMENT IN BRANDED ENTERTAINMENT Research studies and companies trying to monitor and measure impact of branded entertainment, such as: Neilsen Media Research (for network TV) Neilsen IAG Research (market research on viewers opinions) Deutsch/TVX (value of placement compared to value of a commercial) Brand Advosors (for feature films)