ENTERTAINMENT MARKETING Brian Gillespie May 19, 2010

Entertainment Marketing  Product Placement  Film Merchandising  Branded Entertainment

What is Product Placement?  The insertion of branded products or services into mass media content with the intent of influencing consumer attitude or behavior     Why product placement?  Oversaturation of traditional advertising outlets  Reach a captive and involved audience

Product Placement History  Lumiere films in the 1890s   E.T.   Today it is a $3.36B dollar industry  Product channels  TV  Film  Books  Video Games  Music and Music Videos

What do we know?  Placements have direct effects on different consumer attributes  Brand recognition (cognition)  Brand attitudes (affect)  Consumer choice (conation)

Type of placements  Placement (subtle vs. blatant) on recognition and attitudes (Law and Braun 2000)  Blatant placements are more recognizable than subtle placements  Modality (auditory vs. visual) and plot connection (low plot connection vs. high plot connection) on recognition and attitude (Russell 2002)  High plot connection-auditory and low plot connection- visual placements increase attitudes

Frequency of Placements  Type of placement (subtle vs. blatant) and repetition of placement (low repetition vs. moderate repetition) on attitude (Homer 2009)

Character and Product Interactions  Attitudes toward the character vs. attitudes toward the product when the character interacts with the product (Russell and Stern 2006)

Viewer Program Liking  Program liking (low vs. high), prime (not present vs. present), and prominence (subtle vs. blatant) for recognition and attitudes (Cowley and Barron 2008)  Those who like a movie dislike placements more  Distracting from the show  Viewers feel betrayed

Ego Depletion  A state of mental fatigue created from the depletion of a single limited self-regulatory resource, brought on by continued self-regulation  Works like a muscle  Daily tasks are ego-depleting  The majority of television is watched at night during primetime television hours, when people are most likely depleted

Theoretical Model Exposure to PP Outcome Brand Recognition Brand Attitudes Ego-depletion

Results Three Way Interaction Placement, Attitudes and Recognition, and Ego-Depletion Condition LPC HPC Not Placed

Product Placement In Literature  Impact of negatively framed placements in literature  Half of you were told it was a Visio television, half were given no television brand  The television did not work  Brand attitudes toward Visio and Panasonic televisions were measured and subjected to a one- way ANOVA

Results  The effect of the negative placement on brand attitudes toward Visio was significant at p =.08 (one way)  In other words, the likelihood that there was a significant difference in brand attitudes between conditions is 92% Brand Attitudes

Susceptibility to Product Placement  Scale development of seven different dimensions  Predisposition to product placements  The seven scales were used to create a predictive model for susceptibility to persuasion  Product placement skepticism path  Product placement avoidance path

Susceptibility to Product Placement Model

Film Merchandising  Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity  Film merchandising refers to the commodities or products based on movie themes, characters and or images that are designed, manufactured and marketed for direct sale 

Film Merchandising History  First major film merchandising success   Traditionally, film merchandising has been used to target kids through toys  Increasing number of toys aimed at adults  Clothing lines are becoming popular  Today licensed products for entertainment merchandise generate $16 billion a year

Merchandise First  Toy lines that inspired films and television shows  G.I. Joe Hasbro toy Inspired animated television show and live-action movie  Transformers Approximately $600 million in merchandise sales after Transformers 2: Revenge of the Fallen

Branded Entertainment  The creation of original media content, specifically designed to promote a brand or product  Commonly found online  Attempts to create a pull strategy drawing customers to the product through offered entertainment