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Product Placement Moves Online

What kind of car did Will Smith crash?

October 3, 2007

Although product placement has been around for a long time, it is taking on greater importance in the marketing mix as studio executives ponder their options in a shifting media landscape.

Online properties are finding ways to leverage intense consumer interest in product placements. As mentioned previously, sites such as SeenON! and StarStyle offer visitors information about the apparel, accessories, furniture and gadgets that appear in the latest movies and on television shows.

Support for these sites comes from sponsors that include online movie rental service Netflix and brands whose products are featured on screen.

PQ Media projects that worldwide product placement spending on films and TV shows will reach $4.38 billion in 2007, up more than 30% from the 2006 figure of $3.36 billion.

When the exposure value of non-paid product placement is factored in, these figures more than double to $9.33 billion in 2007 and $7.76 billion in 2006.

The majority of product placement spending in films and TV shows occurs in the United States, according to PQ Media.

While the amount spent on placements is a telling indicator of the strength of this advertising channel, Nielsen Media Research quantified the effectiveness of product placement branding in the US.

The market researcher found that between October 2005 and June 2006, 58% of respondents recognized a brand after viewing a product placement in conjunction with a commercial, versus 47% recognition among those who saw only the commercial.

Learn how movie marketers make their pitches to consumers. Please read eMarketer's Digital Movie Marketing: Engaging the Online Audience report.

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