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Product Place-ment

TypesPros and Cons

How-To

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Types of Product Placement

1

Paid

place

ment

2

Barte

red

place

ment Unp

aid

place

ment

© 2016 - www.castalongshadow.-com

3

Unpaid

place

ment


Paid PlacementTypically ensures

the most impactful

placements

Rates vary dramatically and

there are no industry rate standards.

Negotiating paid placments should be handled by a

person with experience in

negotiating paid placements.

Requires a direct

connect to filmakers

Paid Place-ment


Scene from Forrest Gump

Scene from Wayne’s World


Bartered Placements

Scene from Terminator 2


Bartered Place-ment

Bartered placements are not always the

strongest

Movie promotional departments are

not always able to secure or impact

placement

Placement is exchanged for promotional

support and/or production

assets


Unpaid Placements

Scene fromThe Last Stand


Unpaid Place-ment

Typically require a direct

relationship with filmakers

Mostly small wins with an occasional

big win.


Global Box Office – All Films (US$ bil-

lions)

2012

2014

2013

$34.7 $35.9

2015

$36.4 $38.3

Source MPAA



Source MPAAInternational

US/Canada

2011 2012 2013 2014 2015

All Films (US$ bil-lions)

$10.2

$22.4

$10.8

$23.9

$10.9

$25.0

$10.4

$26.0

$11.1

$27.2

Global Box Office



Potential Reach

Cinemas

1.32 Billion

Theme Parks Sports2014-15 Sea-sonSource: Wikipedia

2014Source: TEA AE-

COM 2014 Theme Index

2015Source: MPAA


392 Million 137 Million


People Go To The Movies1.32

billion tickets were sold in the

US/Canada in 2015

More than 2/3rds of the US/Canada population went to a movie in 2015

Average tickets purchased per person 3.8 tickets

152,000 cinema screens worldwide in 2105

Cin-ema

Source MPAA


Pros of Product Placement in FilmA truly captured au-dience

In-theatre viewing captures at-tention in a way that television cannot.

According to TNS Media Intelli-gence, 36% of an hour-long television program are com-mercials compared to 18% in 1981.

Attention81% of Americans almost always or always engage in

another activity while watching TV. The

figure is 88% among 24-29 year olds.


Source: Deloitte Research


Pros of Product Placement in FilmLow CPMs that decrease over time

Calculating initial ROI for paid placementsTotal DVD Ave # of Total Total # Cost

Ave. ticket # of tickets and Blu Ray viewers # of DVD of movie Placement per 1000Theatrical Box Office* price** sold sales *** per DVD**** viewers viewers***** fee viewers

$97,594,140 $7.89 12,369,346 1,172,762 10 11,727,620 24,096,966 $10,000 $0.4150$293,503,354 $7.89 37,199,411 1,997,308 10 19,973,080 57,172,491 $25,000 $0.4373

$1,065,219,746 $7.89 135,008,840 not yet on DVD 10 0 135,008,840 $200,000 $1.4814

* Source: boxoffi cemojo.com

** Source: Hol lywood reporter

***Source: the-numbers .com

****Source: Estimated DVD viewership per DVD according to deadl inehol lywood.com.

Additional distribution that lowers CPM includes movie rentals/downloads, hotel and air-line viewing, premium channel distribution (i.e. HBO, Showtime, etc), cable channel distribution



Placements Keep on Giving

Home Enter-tainment

The Movie

Downloads

The Se-quel .

Your brand becomes part of the life cycle of the movie giving you even more visibility.


The Worth of Product Placement in Successful Films: An Event Study Analysis. Journal of Marketing

Can disclosure lead consumers to resist cover persuasion? The im-portant roles of disclosure timing and type of response. Journal of Consumer Psychology

Product Placement Can Be a Lot more Powerful Than We Realize. Psychology Today

Links to articles/article synopsis are available at wwww.castalongshadow.-com

Increased Brand Cache



Cons of Product Placement

ROI can be dif -ficult to quanti-

fy

It is relationship business (which can be beneficial)

It’s an organic process with many décision makers (It’s not for those

with control issues)

Lead times are of-ten 9 to 24 monthsCons



More Bang for Your Buck

57%

Movie stu-dios spend over 57%* of their budget on marketing

*Source Reuters/Media Valuation Partners


Promotions can be as powerful or have more impact than the placement itself

Branding

Promotional overlays substantively increase recall of placement

Overlays

Leveraging Placements with Pro-motion


Promotional partnerships have been shown to have a quantifiable impact on brand affinity and sales intent.


How to Activate with Promo-tion

Retail Activation Social media

Publicity and PR

Acti-vate


Advertising


How to Activate with Promo-tionRetail Activa-tion


Possible tactics include:- Signage and point of sale mate-rials- Contests and sweepstakes- Special offers


How to Activate with Promo-tionPublicity and PR


Working with the media dramatically leverages placements. An Entertain-ment Tonight interview with Taylor Lautner during the filming of the movie Tracers produced millions of free impressions for the Royal Purple brand.


How to Activate with Promo-tionSocial Media


Promotional partner-ships can increase so-

cial media interaction with consumers via activi-

tiessuch as sweepstakes and custom content.


Speak with

others who are

doing it

So how do I get started?

Ask tough questions

of candidate ageniesEntertainmen

t & Marketing Association

wwww.erma.org

Consider using

an agency

Product Placemen

t

The Entertainment & Marketing Association is a reliable source for agencies.

When candidate agen-cies are identified ask tough questions: • Request documenta-

tion of performance• Ask their strengths and

weaknesses• Ask specifically with

whom they have the best working relation-ships inside the indus-try

• Require a performance guarantee



For more information

Contact Mark McFann [email protected]
