1. ENTERTAINMENT MARKETING Brian Gillespie May 19, 2010

2. Entertainment Marketing  Product Placement  Film Merchandising  Branded Entertainment

3. What is Product Placement?  The insertion of branded products or services into mass media content with the intent of influencing consumer attitude or behavior  http://www.youtube.com/watch?v=aGlFPIg0H6U http://www.youtube.com/watch?v=aGlFPIg0H6U  http://www.youtube.com/watch?v=R22qigXhFjk http://www.youtube.com/watch?v=R22qigXhFjk  http://www.youtube.com/watch?v=5A0-u85aAYg http://www.youtube.com/watch?v=5A0-u85aAYg  Why product placement?  Oversaturation of traditional advertising outlets  Reach a captive and involved audience

4. Product Placement History  Lumiere films in the 1890s  http://www.youtube.com/watch?v=j4hP2fL8liE http://www.youtube.com/watch?v=j4hP2fL8liE  E.T.  http://www.youtube.com/watch?v=AfAzUAxWELU http://www.youtube.com/watch?v=AfAzUAxWELU  Today it is a $3.36B dollar industry  Product channels  TV  Film  Books  Video Games  Music and Music Videos

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

6. 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

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

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

9. 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

10. 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

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

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

13. 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

14. 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

15. 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

16. Susceptibility to Product Placement Model

17. 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  http://www.youtube.com/watch?v=xvmZ9SPcTzU http://www.youtube.com/watch?v=xvmZ9SPcTzU

18. Film Merchandising History  First major film merchandising success  http://www.youtube.com/watch?v=-GqR1q0vaSs http://www.youtube.com/watch?v=-GqR1q0vaSs  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

19. Merchandise First  Toy lines that inspired films and television shows  G.I. Joe Hasbro toy Inspired animated television show and live-action movie  Transformers http://www.youtube.com/watch?v=yxVdqHn-tOo&feature=related Approximately $600 million in merchandise sales after Transformers 2: Revenge of the Fallen

20. 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 http://www.youtube.com/user/Sienna?v=hiLNG153aRI&feature=pyv&ad=5073201044&kw=swagger%20wagon