PRODUCT PLACEMENT

RUSSELL S. WINERSTERN SCHOOL OF BUSINESS

WHAT IS PRODUCT PLACEMENT?

PUTTING BRAND NAME ITEMS AS PROPS WITHIN THE CONTEXT OF A MOVIE, TV SHOW, MUSIC VIDEO, VIDEO GAME, ETC.

HISTORY FIRST SUPPOSEDLY OCCURRED IN THE

EARLY 1950S WHEN GORDON’S GIN PAID TO HAVE KATHERINE HEPBURN IN THE “AFRICAN QUEEN” THROW ITS PRODUCT OVERBOARD

P&G’S SOAP OPERAS STARTED IN THE 1950S

PICKED UP STEAM IN “E.T.” WITH REESE’S PIECES

MORE RECENTLY… “RISKY BUSINESS”: RAY-BAN

SUNGLASSES “YOU’VE GOT MAIL”: AOL, APPLE,

IBM, STARBUCKS “CAST AWAY”: FEDEX, WILSON “JERRY MAGUIRE”: REEBOK

“NIKE TRAINING CAMP” ON COLLEGE SPORTS TV (CABLE)

FINALE OF “FRASIER”: MILANOS COOKIES (PEPPERIDGE FARM)

STARTING TO APPEAR ON CHINESE TV SHOWS

THE DEALS IT SIMPLY HAPPENS

IT’S ARRANGED AND THE PRODUCT SERVES AS COMPENSATION

IT’S ARRANGED AND THERE IS FINANCIAL COMPENSATION (FOR THE MOVIE PRODUCERS)

WHY THE UPSURGE?

RISING PRICES OF TRADITIONAL MEDIA

LOSS OF CONTROL BY ADVERTISERS NEW PHILOSOPHY OF MARKETING

BLURRING DISTINCTION BETWEEN ADVERTISING AND ENTERTAINMENT

CREATING GRASSROOTS TRENDS (“BUZZ” MARKETING)

CASE: INTRODUCTION OF THE BMW Z3 (1995)

BMW/MGM DEAL ON “GOLDENEYE”

NOVEMBER, 1995: CENTRAL PARK LAUNCH EVENT TONIGHT SHOW APPEARANCE RADIO DJ PROGRAM FILM PREMIERE

MARCH, 1996: FIRST CARS AVAILABLE AT THE DEALERS

GOALS OF THE LAUNCH PROGRAM

BUILD EXCITEMENT REJUVENATE BMW BRAND TRANSFORM BMW IDENTITY EXPAND BRAND FRANCHISE TO

YOUNGER BUYERS REVITALIZE DEALERS

OUTCOME

GOLDENEYE RAKED IN $335 MILLION WORLDWIDE

TRAFFIC TO THE BMW WEB SITE TRIPLED AD RECALL (TV, PRINT: 40% OF BUDGET

ON “TRADITIONAL” MEDIA) WAS 44% 9,000 Z3S WERE PRE-BOOKED BY

12/31/95 VS. 5,000 PROJECTED DEALERSHIP TRAFFIC INCREASED

HOW DO WE EVALUATE IT?

MOVE AWAY FROM BRAND ATTRIBUTES TO BRAND “PERSONALITY” OR FROM “ULTIMATE DRIVING MACHINE” INTO “SEXY, WEALTHY, EXCITING”

CAN WE MONETIZE PLACEMENTS?

WHAT ARE THE RISKS?

LOSS OF CONTROL DIFFICULT TO MEASURE IMPACT UNCERTAINTY IN HOW MEDIA

VEHICLE WILL BE RECEIVED NEGATIVE PUBLIC REACTION TO

SUCH MARKETING EFFORTS

SUMMARY MARKETERS ARE LOOKING FOR

NEW WAYS TO COMMUNICATE WITH CUSTOMERS

MORE MONEY INVESTED IN “NON-TRADITIONAL” MEDIA (SEE ALSO WWW.BMWFILMS.COM)

… BUT, NON-TRADITIONAL MEDIA NOT GOING AWAY ANY TIME SOON