Hudson & Hudson (2006)
Hudson & Hudson (2006)
To cite this article: Simon Hudson & David Hudson (2006) Branded Entertainment: A New Advertising Technique or Product
Placement in Disguise?, Journal of Marketing Management, 22:5-6, 489-504, DOI: 10.1362/026725706777978703
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Journal of Marketing Management, 2006, 22, 489-504
1
Correspondence: Dr Simon Hudson, Associate Professor, Haskayne School of
Business, University of Calgary, 2500 University Drive NW, Calgary, Alberta,
Canada, T2N 1N4, Tel: +1 (403) 220 8738, Fax: +1 (403) 282 0095, E-mail:
[email protected]
2
Dr David Hudson, Principal Lecturer, Department of Marketing, Leicester
Business School, De Montfort University, Bosworth House, The Gateway, Leicester,
England LE1 9BH, Tel: +44 (116) 257 7224, Fax: +44 (116) 251 7548, E-mail:
[email protected]
Introduction
brand integration with the storyline or plot. The key influences on the
effectiveness of product placement and branded entertainment are then
highlighted and discussed. The important management issues related to
branded entertainment are considered, issues related to measurement,
control, and ethics. The effectiveness of branded entertainment is a prime site
for theoretical development and the conceptual model presented in the
article identifies many research opportunities. The article therefore concludes
with recommendations for further research.
The origins of product placement can be traced back to the start of motion
pictures itself in the 1890s where Lever Brothers secured the placement of
their branded soaps in some of the earliest films made. Certainly from the
1930s onwards film producers and brand owners actively engaged in
product placement deals. Buick, for example, had a 10 picture deal with
Warner Brothers in the 1930s and US tobacco companies often paid movie
stars to endorse their brands. The advent of television in the 1950s gave
brand owners another avenue for product placement deals. Early TV
programs were often sponsored by and named after brands, like The Colgate
Comedy Hour and Kraft Television Theatre, and within these programmes
presenters would often promote the virtues of the brands. From the early
1930s until the 1980s, barter-style arrangements were in operation, whereby
the brand owner would provide free props to the production set and often
lend advertising support to promoting the film. However, the nature of these
arrangements changed in the mid-1980s with the establishment of specialist
product placement agencies, who negotiated agreements between suppliers
Branded Entertainment 491
and movie makers. The former would benefit from brand exposure and the
latter would obtain much needed financial support and gain a level of
authenticity in the production.
The more recent ‘wave’ of product placement began in 1982, when Reese’s
Pieces were used to lure a lumbering little alien out of hiding in the film E.T.
The placement proved profitable for the candy’s manufacturers, Hershey,
who saw a 65% rise in sales following the film’s release. Ever since, the
placement of products in movies and television has become an important
element of consumer marketing programs and has seen considerable growth
in the last 10 years (Kaikati and Kaikati 2004). Spending on this type of
marketing reached a record $4.25 billion in 2005, an increase of 22.8% from
the $3.46 billion spent in 2004 (PQ Media 2005). This growth has been
influenced by the growth of the entertainment industry. Traditionally,
advertising was placed adjacent to entertainment in order to capitalise on the
audiences the entertainment attracted. However, over the last few decades,
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BRANDED
ADVERTISING ENTERTAINMENT
ENTERTAINMENT
Definitions of product placement, like its practice, have changed over the
years. An early definition that is often used is the one by Balasubramanian
(1991), who defined it as the planned entries of products into movies or
television shows that may influence viewers’ product beliefs and/or
behaviours favourably. Since then there have been a number of definitions
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to penetrate certain countries like China, India, the Philippines, and Africa.
These changes in agency structures and the services they offer have come
at a time when some of the worlds leading advertisers are questioning the
future of the traditional advertising model. In the last few years some of the
world’s leading brand advertisers, such as Procter & Gamble and Coca-Cola
have called on agency and media owners to think differently about how
brands might connect with consumers in the future. Steven Heyer, Coca-
Cola’s president and chief operating officer, said in 2003 that he was moving
away from advertising spots and traditional product placement towards
“ideas that bring entertainment value to our brands, and ideas that integrate our
brands into entertainment” (Aitchison 2004).
Media Used
The product placement phenomenon is penetrating every form of media.
Friedman (1991), for example, has documented the wide use of brand names
to create humour in popular writings such as novels, plays, songs, and mass-
circulation newspapers and magazines. Marketers are also using the Internet
to place products. Many websites have branded computer games, cartoons,
and free graphics or offer branded animations available to download.
Similarly, BMW has expanded the boundaries of advertising formats on the
web where their short films featuring BMW automobiles are the attraction,
not an advertising distraction (Urbach et al. 2004). Movies are now littered
with product placement. Will Smith’s recent film Hitch contained no fewer
than 52 featured brands including Altoids, Fritos, Citibank and Yoga
magazine. But nowhere has this practice become more prevalent or
controversial than on television. A recent ANA survey revealed that 85% of
marketers who participated in branded entertainment used commercial TV
programming. Magazines (34%), movies (31%) and video games (24%) are
the other main types of media marketers are using for branded entertainment
projects (ANA 2005).
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KEY INFLUENCES ON
BRAND SUPPORTING CONSUMER ATTITUDES PLACEMENT
EFFECTIVENESS OF MEDIA USED REGULATIONS
CHARACTERISTICS PROMOTIONAL ACTIVITY TO BRAND PLACEMENT CHARACTERISTICS
PLACEMENT
NO BRAND
HIGH LEVEL OF
INTEGRATION
BRAND INTEGRATION
VISUAL-ONLY
OR VERBAL-ONLY BRAND IS WOVEN
PASSIVE PLACEMENT INTO THE STORYLINE
Branded Entertainment
Brand Characteristics
Some brands lend themselves more to placement than others. In a survey
of marketers’ attitudes toward branded entertainment half of the
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respondents who did not participate said it was because their brands did not
lend themselves to meaningful integration (ANA 2004). Many traditional
business-to-business marketers express little interest in brand placement in
TV or films, whereas fast-moving-consumer-good manufacturers like Coca-
Cola, Pepsi, Procter & Gamble, Nike Inc. and Motorola Inc. are much more
active. It has also been suggested that brand placement only works for
established brand names that are easily identifiable (Ephron 2003). However,
some research suggests that novel or atypical brands will get more notice
from viewers (Karrh 1998), a theory supported by the number of new brands
like ‘Junior Mints’ and ‘Snickers’ launched as a result of placements in the TV
sitcom Seinfeld. Other research suggests that ethically-charged products, such
as alcohol, cigarettes, and guns, are perceived by consumers as less
acceptable than others (Gupta and Gould 1997).
Placement Characteristics
Some researchers have examined the different types of brand placements
and how audiences process them. They agree on a hierarchy of memory
effects according to placement modality of a visual-verbal combination,
followed by a verbal only and then visual-only placements (Russell 2002;
Karrh et al. 2003). When and how products are woven into the story line can
be more important for effectiveness than the number of viewers (Friedman
2003). Research suggests that memory of the placement is likely to be higher
if the placement is meaningful and that there is a connection with the plot
(Russell 2002). Many product placement professionals believe that the best
placements are subtle ones, and the seamlessness of the product placement is
an important factor in judging its success (Cowlett 2000). Other researchers
have found that recall and recognition are better for prominently placed
products rather than those simply appearing in the background (Gupta and
Lord 1998). For television, the link between sponsor and program is very
important for brand recall. The stronger the link, the greater the impact will
be on the sponsor’s image and the attitudes towards the sponsor itself
(Tiwsakul et al. 2005; d’Astous and Ségun 1999). In addition, how a product
is used and by whom is important (Morton and Friedman 2002). Characters
on the screen that share brand use with viewers can contribute to the
relationship between audiences and characters (DeLorme et al. 1994), and
product placement’s association with celebrity can increase its credibility
(Morton and Friedman 2002).
498 Simon Hudson and David Hudson
Regulations
Although brand placement is prevalent in the US, stricter regulations
make it less common in other parts of the world. All broadcasters in the
European Union are forced to adhere to the European Commission’s TV
Without Frontiers Legislation. This is only the minimum requirement –
nations can also impose additional restrictions. In France, for example, brand
placement on television is illegal. In the UK, producers and broadcasters
cannot take inducements as regulators attempt to enforce clear distinctions
between programming and advertising. And in Italy, laws that ban
‘surreptitious advertising’ look unkindly on product placement. In Asia
however, less rigid regulations have allowed branded entertainment to
develop rapidly, with India, China, New Zealand, Australia, and the
Philippines leading the pack. There is the possibility that regulations will
effect the future growth of branded entertainment. However, such laws are
more likely to be relaxed than get stricter.
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Measurement
The measurement of brand placement has been the subject of much
discussion. Just like advertising, the effectiveness of brand placement as a
communications strategy must be gauged against the specific objectives of
decision-makers (d’Astous and Chartier 2000). Academics suggest that
message impact should be assessed at recall, persuasion, and behavioural
levels (Balasubramanian 1994). Amongst brand placement practitioners,
measuring placement’s effectiveness is still a rough-and-ready art, but
unaided recall and brand recognition are the two most popular means of
assessing placements (Karrh et al. 2003). Nielson Media Research has recently
established a product placement measurement service and tracking system.
In its first full season, the system ranked Coca-Cola as the champion of
product inclusions, with products or mentions appearing 2,260 times,
followed by Nike apparel products which appeared 1,048 times (Atkinson
2004). Two New York-based companies, Intermedia Advertising Group and
Itvx, have also developed product placement measuring tools to measure
recall and strategic fit.
However, there are still some critics that question the high investment that
branded entertainment requires. Certainly, entertainment costs are
escalating. Even the cheapest channel on multi-channel TV demands a
programming budget of $30,000 an hour (Reid, 2004). BMW recently
discontinued its branded entertainment efforts due to rising costs and a lack
of effective measurement (Halliday and Graser 2005). As Russell and Belch
(2005) surmise, as the product placement industry matures and attracts ever
Branded Entertainment 499
Control
Marketers have far less control over most brand placement efforts than
they have with traditional advertising (Kaikati and Kaikati 2004).
Advertisers’ representatives, accustomed to buying time in specific slots and
filling them with commercials over which they had complete control, are
now faced with dealing directly with Hollywood’s creative talent. Control
over content is not something Hollywood will surrender lightly, even if it is
able to. If the plot takes a wrong turn, or the subject matter is inappropriate,
the brand exposure can backfire. Reebok, for example, filed a breach of
contract suit in 1996 against TriStar Pictures in connection with the movie
Jerry Maguire. Under an agreement, Reebok asked for a full-length TV
commercial for the brand to be part of the movie. The commercial was
eventually cut from the final film, but a scene in which a character shouted
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Ethical Issues
Finally, brand managers have to consider emerging ethical and legal
issues (Karrh et al. 2001). Research has confirmed that consumers are
concerned about the ‘subliminal’ effects of brand placement (Tiwsakul et al.
2005). Others fear that brand placement’s influence on the content of movies
and television will seep into news magazines, where editorial content is seen
by many as inviolate. Critics also claim that the trend of embedding products
into songs is an invasion of music lovers’ privacy, and some have expressed
concerns over the loss of artistic freedom resulting from the increased use of
brands in video games (Nelson 2002). Concern has been cited for product
placements of ethically charged products (Gupta and Lord 1998) (guns,
alcohol and tobacco for example), and others question the use of brand
placement in children’s programming (Avery and Ferraro 2000).
500 Simon Hudson and David Hudson
Future Research
The effectiveness of branded entertainment is a prime site for theoretical
development, and the conceptual model presented in this article identifies
many research opportunities. Both qualitative and quantitative studies have
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a role to play in such research. To begin with, much empirical research in this
area fails to distinguish between the various brand placement techniques,
such as those proposed by d’Astous and Ségun (1999). Previous studies have
generally ignored how the characteristics of brand placements impact
differently on consumer reactions and memory. Such research would be of
great benefit to a firm wishing to invest in branded entertainment when
deciding how its product or brand is going to be presented. There is also a
general failure to differentiate between media vehicles. Future research
should explore and compare consumers’ reactions to product placement
across different types of media. For example, how consumers will react to the
increased use of branded entertainment in magazines is unknown (Fine
2004).
Another area that should be investigated is consumers’ degree of
acceptance and attitude toward branded entertainment in different product
categories. Such research should be conducted using larger, more diverse
samples (rather than just students) and could measure important variables
such as the impact of prior familiarity with the brand or the effectiveness of
supporting promotional activity. The interest in the implementation of
globally integrated marketing communications strategy has raised the issue
of how consumers in different cultures perceive, and form attitudes towards,
branded entertainment. More cross-cultural research is needed therefore to
generate deeper knowledge of the diverse factors that might impact the
effectiveness of branded entertainment.
Ethical issues related to product placement and branded entertainment
also warrant further investigation. Some researchers have suggested that
product placements are often more effective than traditional advertising
techniques because they are deceptive.
Branded Entertainment 501
Nebenzahl and Jaffe (1998) propose that product placement is the least
ethical of all forms of advertising since it is both high on source concealment
and obtrusiveness. Future research should include the influence of branded
entertainment on vulnerable groups, as well as consumer responses to the
placement of ethically charged products. In particular there have been calls
for more research that focuses on the influence of product placement on
children (Tiwsakul et al., 2005).
Finally, as mentioned previously, there is a need to determine whether
consumer response to branded placements will change over time. As
branded entertainment becomes an increasingly pervasive form of marketing
communication, it may lose its novelty and become subject to the clutter that
has characterised advertising over the last few decades. It will require the
monitoring of the effectiveness of the strategy over time to determine
whether and how such developments come to affect viewer attention, recall
and attitude. As one critic has observed, “the infuriating paradox of product
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placement is that if you notice it, it is bad. But if you don’t notice it, it is worthless.
It is such a narrow line that either the viewer or the advertiser feels betrayed”
(Ephron 2003, p. 20).
References
pp. 29-47.
Branded Content Marketing Association (BCMA) (2005), at
http://www.thebcma.info (accessed 1 July 2005).
Cowlett, Mary (2000), “Make it Into the Movies,” Marketing, 17 August, pp.
29.
DeLorme, Denise E., Reid, Leonard N., and Zimmer, Mary R. (1994), “Brands
in Films: Young Moviegoers’ Experiences and Interpretations,” paper
presented at the 1994 Conference of the American Academy of
Advertising, Tuscon, Arizona.
Ephron, Erwin (2003), “The Paradox of Product Placement,” Mediaweek, Vol.
13, No. 22, pp. 20.
Elliott, Stuart (2006), “Advertisers Now Want To Be Directors, Too,” New
York Times, 17 April, at:
http://www.iht.com/articles/2006/04/17/business/brand.php
(accessed 19 April 2006).
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