Product placement vs. sponsoring

Product placement is often confused with sponsoring. However, the European Audiovisual Media Services Directive [1] state that the main difference between sponsorship and product placement is that in product placement the reference to a product is built into the action of a program. Sponsor references may be shown during a program but are not part of the plot.

Examples of product placement

 

Click 'read more' to see more examples of product placement in movies and TV series.

The product placement logo

The 'PP' icon (logo differs per country) is used for programmes which have product placement within them. According to the European Audiovisual Media Services Directive, television companies are required to inform their audience when they are exposed to brands in a particular program, movie or series. This by showing the product placement logo in front and end of it is broadcasted.

Effects of product placement

Product placement can be forbidden in case it does not meet the requirements. Then it is forbidden because of its negative and unconscious effect on consumers.


 

When is product placement forbidden?

Before 2007, there were no legal guidelines for product placement. Therefore, the European Union established guidelines for audiovisual media services. According to this European Directive [4], product placement is defined as: “Any form of audiovisual commercial communication consisting of the inclusion of, or reference to a product, a service or the trade mark within the framework of a program, in return for payment or for similar compensation”.

Types of product placement

 

According to Smith (1985), brands are featured in four primary ways. First, the product can be seen on the background or it is actually being used. For instance, when actor Tom Hanks drinks from a bottle of Dr. Pepper in the movie Forrest Gump. Secondly, a corporate logo, trademark or other identifying characteristic of the brand is shown. For example, using an Aston Martin car in all the James Bond movies. Next, when an advertisement, like a billboard or a television commercial is placed into a scene in the background. Finally, in a dialogue they can refer to a brand name, without actually saying the name. For example, in Forrest Gump they referred to Apple with “the computing machine with the fruit on it”.  

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].

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