1 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Event Sponsorship, Product Placements, and Branded Entertainment Event Sponsorship, Product Placements, and Branded Entertainment 16 1 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why the Convergence of Madison (NYC) & Vine (LA)? (meaning - advertising and entertainment) Advertising, branding, and entertainment are converging though social networking, videogames, and events. Mass media erosion has fueled the convergence. More IBP options provide more opportunities for brand visibility. A mass exodus from traditional media – Chaos Scenario: o Dollars will leave (have left) traditional media because of audience fragmentation and ad avoidance o Reduced funds from ads will compromise programming o Compromised programming will reduce audience size leading to more ad erosion o Billions of dollars will flow to alternative IBP techniques Events, product placements, and branded entertainment offer exciting ways to build brands in the market. 16 3

3 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Event Sponsorship Involves a marketer providing financial support to help fund an event The appeal of event sponsorship: o Effective media coverage and exposure o Fan loyalty converts to sales through the “affinity” effect o Events can foster brand loyalty o Events attract well-defined audiences 16 5

4 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Managing Event Sponsorship Assess the Benefits Hard to determine, especially if CEO ego is involved Nielsen has developed software for assessment Advertisers seek “media impressions” from brand exposures during the event Leverage the Event Collateral communication that reinforces the event— news coverage, PR, word-of-mouth, etc. Can be used to entertain/reward key customers, motivate sales force and employees Can be used to sell branded premiums 16 8

5 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Product Placements Placing a branded product in the content of an entertainment event/product: Television—over 100,000 placements in 2005 In movies—Under 25 segment most likely to notice and try brands placed in movies In video games—Game placement expenditures could reach $1 billion by 2010 Novel product placements create “buzz” “Authenticity” and “celebrity connection” are keys to success in placement 16 10

6 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Branded Entertainment Developing and supporting a sporting event, TV show, theme park, short film, movie, or video game where the objective is to feature a brand to impress and connect with consumers in a unique and compelling way. The surge of these techniques relates to reaching unreachable segments. There is the risk of oversaturation resulting in consumer annoyance. Marketers and entertainment providers can have trouble working together and agreeing on priorities. Consumer advocacy groups like Consumer Alert argue that product (brand) placements are really just paid advertising and consumers should be informed of such. Attitudes and regulations vary from country to country

7 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Branded entertainment puts the brand in a “natural” setting. © The Procter & Gamble Company. Used by permission.