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Product placement facts for kids

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Product placement, also known as embedded marketing, is a way for companies to show their products or brands in movies, TV shows, video games, or other media. It's a marketing trick where a brand is included in a story with the goal of promoting it. Sometimes, companies lend expensive items like cars to movie sets. In 2021, deals between brands and entertainment projects were worth over US$20 billion!

While stories might include real or made-up brands to make them feel more realistic, product placement is different. It's when a brand or product is intentionally shown in exchange for money or other benefits. These placements can be subtle, like a product sitting in the background, or very obvious, like a character talking about it. When viewers aren't told that a product is being advertised, it's sometimes called hidden advertising.

Common products seen in placements include cars and electronics. Big companies that own many different businesses, like Sony, might use product placement to promote their other brands.

In the 21st century, product placement on TV has grown a lot. This is partly because more people use digital video recorders to skip commercials. Product placement helps brands reach younger audiences. New computer editing tools can even change product placements to fit different viewers or add them to old shows that didn't have them before.

A Look Back: History of Product Placement

Early Examples

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A Bar at the Folies-Bergère by Édouard Manet might be an early example of product placement. The bottles can be identified as Bass beer.

Product placement started a long time ago, in the 1800s. When Jules Verne published his adventure novel Around the World in Eighty Days in 1873, transport companies asked to have their names mentioned in the story because he was so famous. We don't know if Verne was paid for this.

Similarly, a painting by Édouard Manet from 1881–1882 shows a bar with bottles that look like Bass beer. Manet's reasons for including these brands are unknown; maybe it just made the painting feel more real, or perhaps he received some payment.

Research suggests that some of the very first films, made by Auguste and Louis Lumière in 1896, were created at the request of a company that made Sunlight soap. These films showed Sunlight soap, which might be one of the first times a company paid to have its product shown in a movie. This helped cinema become an early way for brands to advertise.

Johanna Schaffgotsch liest Die Woche closeUp
A German countess holds a copy of Die Woche magazine in 1902. This photo appeared in the magazine itself.

Around the same time, magazines with lots of photos found ways to make themselves seem more important. For example, the German magazine Die Woche in 1902 published a photo of a countess in her castle, holding a copy of the magazine.

In the early days of movies (1895–1907), short films were often used to show off products. Some experts say these early films were a lot like today's commercials.

Later, a movie trade journal called Harrison's Reports often complained about brands appearing in films. Its editor, P. S. Harrison, thought this practice was bad for movie theaters. He first criticized it when Red Crown gasoline appeared in The Garage in 1920. He also disliked how the Corona Typewriter company worked with First National Pictures to show Corona typewriters in several films, including The Lost World (1925).

In Movies and TV Shows

Famous Movie Placements

Movies that millions of people are expected to watch are very attractive to marketers. Often, movie producers don't ask for money when consumer brands appear in films. This is because movie sets need props for their scenes, and the person in charge of finding props will contact advertising agencies or product companies directly. Besides items for the screen, the product supplier might also give free products or services to the production team. This can be especially helpful for movies that need old-fashioned items, like a vintage sign or bottle, which are hard to find.

One of the first films to win the Academy Award for Best Picture, Wings (1927), included a mention of Hershey's chocolate. In Fritz Lang's film Woman in the Moon (1929), someone drinks from a glass for Odol, a popular German mouthwash. His film M (1931) shows a banner for Wrigley's PK Chewing Gum for about 20–30 seconds.

In Horse Feathers (1932), a character falls into a river and asks for a "life saver," and Groucho Marx throws her a Life Savers candy. It's a Wonderful Life (1946) shows a young boy who wants to be an explorer holding a copy of National Geographic magazine. In Love Happy (1949), Harpo Marx escapes villains on the old Mobil logo, the "Flying Red Horse." Some critics really disliked this scene. In the 1958 British WWII movie Ice Cold in Alex, the long-awaited cold drink turns out to be a Carlsberg.

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A DMC DeLorean car was used in Back to the Future III.

The James Bond film You Only Live Twice (1967) featured the Toyota 2000GT. Later films like Smokey and the Bandit (1977) and The Cannonball Run (1981) also had noticeable placements. The science fiction film E.T. the Extra-Terrestrial (1982) is famous for its many clear placements, including Reese's Pieces candy, which became part of the story. In the 1985 version of The Return of Godzilla, Dr Pepper was shown often.

Cheerios and Coca-Cola appeared in the musical Evita, and in Superman: The Movie and its sequel Superman II. In Superman II, Superman crashes into a giant Coca-Cola advertisement and saves people on a bus with an ad for Evita, before hitting a delivery truck for a certain brand.

In the 1993 film Demolition Man, the fast food chain Taco Bell is shown as the only restaurant left in 2032. Because Taco Bell wasn't well known outside the U.S., for international releases, it was replaced with Pizza Hut. The dialogue was re-recorded and logos were changed after filming.

In Cast Away, Tom Hanks' character works for FedEx, and a Wilson Sporting Goods volleyball is a key part of the film. The 2013 film The Internship, about two friends looking for jobs at Google, was described by the BBC as "one huge advertisement for Google."

TV Show Examples

In the US, radio shows since the 1930s and TV shows since the 1950s have often been supported by sponsors. Soap operas got their name because companies that made cleaning products, like soap, often sponsored them. Early TV shows like DuMont's Cavalcade of Stars in the 1950s and programs sponsored by companies like Hallmark Cards continued this trend.

The TV series Mister Ed (1961–1966) prominently showed Studebaker cars, as Studebaker Corporation sponsored the show from 1961 to 1963. Similarly, Ford vehicles were displayed on the series Hazel (1961–1966), which Ford sponsored from 1961 to 1965.

In the UK, the commercial TV network ITV used to broadcast "admag" shows, which were entertainment programs with product placement, like Jim's Inn, until the government banned them in 1963.

Different Kinds of Product Placement

Product placements can be either paid or unpaid. Most are unpaid, where the advertiser simply lends or gives the product to the production. This helps reduce the movie's costs, as they don't have to buy or rent the items.

Placements can be basic, where a logo is just visible, or advanced, where characters talk about the product. Sometimes, content creators trade product placements for help funding ads related to a film's release or a show's new season. Another type is an advertisement placement, where an actual ad for the product (like on a billboard) appears in the show.

Brands Becoming Part of the Story

This is called brand integration, where a product or company name becomes so important that it helps tell the story and creates a strong awareness of the brand. This is common in reality shows like The Apprentice, but it also happens in scripted shows. For example, in the film Man's Favorite Sport? (1964), an Abercrombie & Fitch store was a key location. In All My Children, a character got a job at Revlon, and this job became part of her story.

Jurassic Park not only featured Ford cars and other products but also showed its own souvenir store, selling items to fans.

Hiding or Changing Brands

Sometimes, a real brand logo is hidden or replaced with a made-up brand name. This might happen to copy, make fun of, or simply differentiate the product from a real company. It's also used when real companies don't want their brand names used in a story, especially if the product is shown in a negative way.

For example, Danny Boyle, the director of Slumdog Millionaire (2008), said they used "product displacement" because sponsors like Mercedes-Benz didn't want their products shown in poor areas. They digitally removed logos after filming, which cost a lot of money.

In The Blues Brothers (1980), parts of an old mall were rebuilt for a car chase. The signs for real stores like Walgreens were changed to other names, like Toys "R" Us.

The movie Cars (2006) makes fun of NASCAR, a sport known for lots of advertising. The real sponsors were replaced with made-up or parody brands. For instance, Dinoco Oil is a major brand. A character's sponsor, which was a certain drink brand in real life, was changed to avoid advertising that product in a Disney & Pixar movie.

Audio vs Visual

Product placements can be heard only, seen only, or both. In the Russian TV show Dom-2, participants often say things like, "Did you see the new product X by company Y?" and then the camera zooms in on the product, combining sound and sight.

A study in 2002 found that when a product was both seen and heard, people remembered it better than if it was only seen or only heard.

Real Products from Fictional Worlds

This is called "reverse product placement," where real products are created to match those seen in a fictional story, often as a tie-in.

The film Willy Wonka & the Chocolate Factory (1971) led to a real Willy Wonka candy company being started soon after the movie came out.

In 2007, to promote The Simpsons Movie, 7-Eleven temporarily changed twelve of its stores into Kwik-E-Marts, the fictional convenience stores from The Simpsons. These stores sold real-world versions of food and drink brands from the show, including Buzz Cola, Duff brand drinks, and Krusty-O's cereal.

In Music and Comics

Since radio and TV stations have rules from the government, companies sometimes try to get products mentioned in song lyrics or music videos.

In 2010, Lady Gaga's music video for "Telephone" was criticized for showing nine brands in nine minutes, many of which were paid placements. Other music videos in 2010 also showed the PlentyofFish website.

In 2011, Britney Spears's music video for "Hold It Against Me" advertised PlentyofFish and Sony; one review called it "like a long commercial." Jennifer Lopez's music video "Papi", sponsored by Fiat, was even edited into a 30-second ad for the Fiat 500 Cabrio.

Rap and hip hop music are known for having many product placements in lyrics and videos. Rappers often show off luxury brands to highlight their wealthy lifestyle, and companies pay to have their products named in songs. This started in 1986 with Run-DMC's "My Adidas." Certain popular drinks became well-known after being promoted in rap music.

In South Africa, the football comic book Supa Strikas accepts product placement to allow the comic to be given away for free. Brands appear on players' shirts, billboards, and in the story itself. Supa Strikas gets most of its support from Chevron, through its Caltex and Texaco brands.

In Sports

Product placement has been common in sports for a long time.

NFL

While the now-closed NFL Europe allowed many sponsors on team uniforms, the main National Football League (NFL) does not. In the United States, the league doesn't allow sponsor logos painted on the fields, though Gillette Stadium has its own stadium logo on the field. In 2008, the league allowed sponsors on practice jerseys, but not on game uniforms.

Two of the NFL's oldest teams, the Green Bay Packers and the Pittsburgh Steelers, got their names or logos from company sponsors. The Packers were named after the Indian Packing Company. The Steelers adopted their logo in 1962 as a deal with the American Iron and Steel Institute, which owned the Steelmark logo.

Auto Racing

In auto racing, the idea of car manufacturers supporting drivers and teams to get their products seen dates back to the 1950s in NASCAR. A common saying was "Win on Sunday, sell on Monday," meaning racing wins helped sell cars.

In Formula One, many major racing teams were once sponsored by companies that made smoking products. Because of stricter rules about advertising certain products worldwide, many of these sponsorships have either stopped or are shown in a less obvious way when races are held in places with bans on such advertising. Today, similar issues are faced by Stake, a company that offers online games, which sponsors the Sauber Motorsport team. Another platform, Kick, is a co-sponsor, and a different Kick-themed car design is used for races in regions where Stake cannot be advertised.

Notable Placements

Cars, clothes, drinks, home goods, furniture, electronics, computers, restaurants, banks, travel companies, airlines, and websites are just some of the many types of products that use placement.

FedEx provided vehicles, access, and help for the movie Cast Away. The film showed real FedEx locations, and the company's CEO at the time, Frederick W. Smith, even appeared in a scene.

Automobiles

Cars are one of the most common products promoted this way. Often, all the important vehicles in a film or TV series come from one car maker.

The James Bond film series is famous for featuring many different vehicles, especially luxury and sports cars. Aston Martin has been the most linked with the franchise, starting with the Aston Martin DB5 in Goldfinger (1964).

The movie Cars (2006) shows a mix of real and made-up vehicles as characters. While none were directly paid placements, many car makers helped with technical advice and vehicles during production. The Lexus LC 500 was in the 2018 film Black Panther. The Audi R8 was featured in the Iron Man film series, while the Acura NSX Roadster appeared in The Avengers.

Apparel and Accessories

The James Bond series has also featured many accessory and fashion brands, like Rolex and Omega watches, Calvin Klein clothing, and Samsonite luggage.

Designers like Vera Wang, Carolina Herrera, Christian Lacroix, Lanvin, Dior, Oscar De La Renta, Manolo Blahnik, and Vivienne Westwood were all shown in the TV series Sex and the City. Under Armour has appeared in films such as Fast and the Furious, The Martian, 22 Jump Street, and Fantastic Four.

Consumer Electronics and Computers

Apple products often appear in films, music videos, and on television. Apple has said they don't pay for this, but they don't discuss how their products are placed. Some Apple placements happen because their products are so common and seen as cool, rather than from paid promotion. For example, Pixar films often include Apple products as a tribute to company co-founder Steve Jobs. Apple products are also clearly shown in shows made for their streaming service, Apple TV+.

The 2010 Modern Family episode "Game Changer" prominently featured the iPad before it was released. The 2015 episode "Connection Lost" was shown entirely from the view of a MacBook owned by a main character, who used FaceTime and iMessage. The show's creator said they had an ongoing relationship with Apple, but Apple didn't pay for these integrations.

In video games, common placements are for computer parts like processors or graphics cards. For example, in EA's Battlefield 2142, ads for Intel Core 2 processors appear on billboards in the game. EA's The Sims includes in-game ads for Intel and McDonald's.

Food and Beverage

The use of Reese's Pieces as a key part of the film E.T. the Extra-Terrestrial came from a sponsorship deal. Originally, the alien's favorite food was supposed to be M&M's, but Mars Incorporated turned down the offer, thinking the alien might scare children. The Hershey Company took the sponsorship instead, which included rights to promote Reese's Pieces with the film. This deal was a huge success; sales of Reese's Pieces tripled, and some stores had trouble keeping up with demand.

The film Mac and Me was criticized for having many placements for Coca-Cola drinks and McDonald's fast food. Both brands are central to the film's story, and McDonald's mascot Ronald McDonald even appears in a dance scene. Critics also noted that the alien creature's name, "Mac," could be a reference to the Big Mac burger.

The James Bond series has also featured placements for certain drinks, linked to the character's love for special drinks like martinis. However, Skyfall changed this by making a promotional deal with the drink company Heineken.

Airlines

Many airlines have advertised clearly in films, sometimes to promote a new flight route or just to make more people aware of the company. Pan Am advertised in many films, including 2001: A Space Odyssey and James Bond movies. American Airlines was advertised in Home Alone and Home Alone 2. A model of a Virgin Atlantic Boeing 747 was shown in Wayne's World.

American Airlines and Hilton Hotels were featured in the film Up in the Air. Turkish Airlines was featured in Batman v Superman: Dawn of Justice after signing a contract with Warner Bros.

Rules and Fairness

United States

Many US broadcasting rules about showing products on air come from fairness issues in radio in the 1950s. An investigation in 1959 looked into claims that some radio DJs had accepted gifts in return for playing certain songs. This led to rules that say if a radio station broadcasts something for which it received money or other valuable things, it must announce that it was paid for.

In 2005, a US government official, Jonathan Adelstein, said that if TV companies show products without telling the public, "that is payola, and that is the FCC's business."

United Kingdom

PP - Product Placement UK logo
The 'PP' icon, used in the UK to show programs that contain product placement.

In the United Kingdom, showing products in commercial broadcasts was not allowed before 2011. On February 28, 2011, the telecommunications regulator Ofcom made it legal for certain types of programs. A placement must "make sense for the story" and not make the product seem too important. Product placements are not allowed for products that cannot legally be advertised on TV, such as certain adult drinks, baby milk, or unhealthy foods. They are also not allowed during children's shows, news, or religious programs.

Also, broadcasters must show a "PP" icon for at least three seconds at the beginning of the program, after each commercial break, and at the end. The first legal product placement on British TV was for a Nestlé coffee maker during an episode of This Morning. The BBC is not allowed to have product placements in its programs.

Fun and Extreme Examples

Back to the Future Part II included product placement for future versions of Nike shoes, Pepsi-Cola, and USA Today.

Blade Runner had clear placements for many brands. Logos of Atari, Bell, Coca-Cola, Cuisinart, and Pan Am, all big companies at the time, were prominently displayed.

I, Robot featured placements for Converse, Ovaltine, Audi, FedEx, and JVC among others, many appearing within the first ten minutes. In one scene, Will Smith's character gets a compliment on his shoes and replies, "Converse All-Stars, vintage 2004" (the year the film came out). Audi even created a special car for the film, the Audi RSQ.

In December 2003, a series of commercials for Cristal brand drinks were shown at the start of each ad break during Star Wars on a Chilean TV channel. These ads looked like continuations of the scenes before them. The campaign, called The Force is with Cristal Beer, won awards.

The Island features at least 35 different products or brands, including cars, bottled water, shoes, and a web search engine. The director, Michael Bay, said he added the advertisements to make the movie feel more realistic.

Josie and the Pussycats has placements in most of its shots. This was done in a funny way, as the movie's story is about hidden messages in advertising. The film's overall message can even be seen as being against too much consumerism. The filmmakers did not ask for or receive money for these placements.

The 2009 Star Trek film showed young James Kirk driving a Chevrolet Corvette and using a Nokia touch-screen smartphone. Before he drives the car off a cliff, the distinct Nokia ringtone can be heard. This use of modern products was found funny by some, as the scene is set in the year 2255.

"The Package", a 2012 episode of Hawaii Five-0, was heavily criticized for a 50-second scene where a character praised Subway sandwiches.

The 2013 Filipino film My Little Bossings was criticized for its many product placements. Reviewers said the film felt like "one long commercial," with ads for brands endorsed by the actors frequently appearing in the movie without being properly woven into the story.

Why Do Companies Use Product Placement?

Product placement can have both clear and subtle effects. Clear effects are things you notice directly, like remembering a product after seeing it. Subtle effects are changes in behavior, like wanting to buy a product more, even if you don't consciously remember seeing it. Subtle effects are often more important for influencing what people buy.

A 2009 study found that product placement in movies can be financially effective. It looked at how a company's stock price changed after its product was placed in a movie. The study found that, on average, companies saw their stock price increase by 0.89% during the movie's opening.

How it Affects Viewers

  • Remembering Products: People are more likely to remember a product if they see it in a movie or show.
  • Attitude: Product placement can change how people feel about a product or brand.
  • Buying Intention: Many studies have shown that product placement can make people more likely to want to buy a product.
  • Subtle Effects: Product placement can affect people without them even realizing it. For example, it can make people think of a certain brand first when they're considering what to buy. Companies hope to get past people's usual defenses against advertising by using these subtle methods.
  • Negative Effects: Sometimes, product placement can have no effect or even a negative one. This usually happens if the placement is too obvious and viewers feel like they are being manipulated.

What Makes Placement Work Better?

  • Fitting In: The better a product placement fits naturally into the story, the more effective it will be.
  • Audio vs. Visual: When a product is both seen and heard, people tend to remember it best.
  • Character Appeal: People tend to like brands more if they are shown with attractive characters.
  • How Obvious It Is: If product placement is too obvious or repeated too much, it can bother viewers. However, a moderate amount of subtle placement doesn't usually distract people. Products that are part of the story are remembered better than those just in the background.
  • Viewer Interest: If someone is very interested in a show or a product category, they are more likely to notice product placement. This can lead to positive effects, but also sometimes negative reactions if they feel it's too much.

Who is Most Affected?

  • Age: Younger children (ages 6-9) often don't understand that companies pay for products to be in films. After age 10, most children start to understand that a company paid for the product to appear and that the placement is aimed at them. Children over 12 usually fully understand the marketing reasons behind product placement.
  • Gender: If a product is promoted by a person, it can have a stronger effect if the viewer is the same gender.

Ethics

Some people argue that product placement is not ethical because it might influence people without their full awareness. Others believe that even if product placement works subtly, our minds still evaluate it, and it can't make people act against their beliefs. Many people also appreciate that movies look more realistic with real brands and don't feel bothered by the placements.

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