Definition of product placement

Product placement, often called brand placement, is a relative new form of advertising, which advertisers use to generate revenues besides the classic commercials. There can be found different definitions about product placement. For example, Gupta and Gould [1] define it as the incorporation of brands in movies in exchange for money or promotional or other purposes. Furthermore, according to Balasubramanian [2], product placement can be defined as a “paid product message aimed at influencing movie (or television) audiences via the planned and unobtrusive entry of a branded product into a movie (or television program)”. Product placement is also often called ‘entertainment marketing’, because it does not only occur on television and movies, but also in computer games, books, songs and even in theater [6].


It is often assumed that corporations pay fees to put their products or brand into media entertainment. Although this happens occasionally, payments for product placement is the exception rather than the rule. Mostly, there is a trade agreement, where goods are supplied for use on- or off-screen, in exchange for being placed into the medium.

References

[1] Gupta, P. B., and Gould, S. J. (1997). Consumers’ perception of the ethics and acceptability of product placements in movies: Product category and individual differences.Journal of Current Issues and Research in Advertising, 19(1), 37-50.

[2] Balasubramanian, Siva K. (1994), “Beyond Advertising and Publiaty: Hybrid Messages and Public Policy Issues,” Journal of Adverrtising, 23 (December), 29-46.

[3] Hackley, C., Tiwsakul, R.A., and Preuss, L. (2008). An ethical evaluation of product placement: a deceptive practice?, Business Ethics: A European Review, 2008, 110.