So You Want to be in Pictures - Product placement: Impact, types and how-to

Product Placement: Impact, Types and How-To
So You Want to be in Pictures

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Source MPAA
International US/Canada
2014 2015 2016 2017 2018
All Films (US $ billions)
$10.4
$26.0
$11.1
$27.2
$11.4
$27.3
$11.1
$29.2
$11.9
$29.2
IMPACT
A Growing
Global Box
Office
© 2018 - www.castalongshadow.com

IMPACT - Unparalleled Reach
Cinemas
1.32 Billion
Theme Parks Sports
2017-18 Season
Source: Wikipedia
2018
Source: TEA AECOM
2018 Theme Index
2018
Source: MPAA
421 Million 131 Million

Product placement’s influence on
consumer behavior well-documented.
The Worth of Product Placement in
Successful Films: An Event Study
Analysis. Journal of Marketing
Can disclosure lead consumers to resist
cover persuasion? The important 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
IMPACT – Increased brand affinity, sales

IMPACT – Movie Lifecycle
DVD & Blu-ray
The Movie
Downloads
Pay-per-
view, Netflix,
HBO and
beyond
Audience expands past the theatre.

IMPACT – Studio support
57%
Studios
spend as much
as
57%* of
their budget on
marketing
*Source Reuters/Media Valuation Partners

Direct Placement
Typically the most impactful
placements.
Rates vary dramatically with no
industry standards. Negotiating
placements best handled by
someone with industry
experience.
Bartered
Placements
Paid
Placement
Unpaid
Placements
Placement is exchanged
for promotional support
Most common. Also known as in-
kind placement. Requires a direct
relationship with filmmakers.
Promotional support
strengthens the perceived
connection between the brand
and the film
The more projects placed, the
greater likelihood of securing
‘hero’ placements.
Types
Works best for commonly used
products such as electronics,
automobiles and beverages
Movie promotional
departments not always able
to impact placement
Paid placements usually allow
for activation and promotion of
the placement

IMPACT - Low CPMs decrease over time
Calculating ROI for paid placements
Additional distribution that lowers CPM includes movie rentals/downloads, hotel and airline viewing,
premium channel distribution (i.e. HBO, Showtime, etc), cable channel distribution
Total Theatrical Post theatrical
Ave. ticket #oftickets Placement only viewership Total Total
Box officesales price* sold fee CPI multiliple** viewership CPI
$100,000,000 $9.27 10,787,487 $25,000 $2.32 4 43,149,946 $0.58
$250,000,000 $9.27 26,968,716 $25,000 $0.93 4 107,874,865 $0.23
$500,000,000 $9.27 53,937,433 $25,000 $0.46 4 215,749,730 $0.12
$750,000,000 $9.27 80,906,149 $25,000 $0.31 4 323,624,595 $0.08
*Average US ticket price for 2018 per boxofficemojo.com
**Estimated multiple of people who see a movie after theatrical release per Variety

Key Points…
It’s a long term
strategy with a
better ROI than
advertising
It’s a relationship business
with few industry standards.
Knowledge is key to success.
It’s an organic process with
many decision makers
Lead times are long
and often 9 to 18
months
Investment

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

How to Activate with Promotion
Retail Activation Social media
Publicity and PR
Activate
Advertising

Retail Activation
Tactics include:
- Signage and point of sale materials
- Contests and sweepstakes
- Special offers

Activate with Promotion
Publicity and PR
Working with the media
dramatically leverages
placements. An Entertainment
Tonight interview with Taylor
Lautner during the filming of the
movie Tracers produced millions
of free impressions for the Royal
Purple brand.

Social Media
Promotional partnerships
increase social media
interaction using
sweepstakes and
custom content.

Advertising

Speak with
others who
are doing it
Get started!
Ask tough
questions of
candidate
agencies
Entertainment
Resources &
Marketing
Association
wwww.erma.org
Consider
using an
agency
Product
Placement
Credible product placement and
entertainment marketing
companies are members of the
Entertainment Resources &
Marketing Association (ERMA).
Ask candidate agencies the tough
questions:
• Request documentation of
performance
• Ask their strengths and
weaknesses
• Ask specifically with whom they
have the best working
relationships inside the industry
• Require a performance
guarantee

So You Want to be in Pictures - Product placement: Impact, types and how-to

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So You Want to be in Pictures - Product placement: Impact, types and how-to