1. PRODUCT PLACEMENT RUSSELL S. WINER STERN SCHOOL OF BUSINESS

2. WHAT IS PRODUCT PLACEMENT? PUTTING BRAND NAME ITEMS AS PROPS WITHIN THE CONTEXT OF A MOVIE, TV SHOW, MUSIC VIDEO, VIDEO GAME, ETC.

3. HISTORY FIRST SUPPOSEDLY OCCURRED IN THE EARLY 1950S WHEN GORDON’S GIN PAID TO HAVE KATHERINE HEPBURN IN THE “AFRICAN QUEEN” THROW ITS PRODUCT OVERBOARD P&G’S SOAP OPERAS STARTED IN THE 1950S PICKED UP STEAM IN “E.T.” WITH REESE’S PIECES

4. MORE RECENTLY… “RISKY BUSINESS”: RAY-BAN SUNGLASSES “YOU’VE GOT MAIL”: AOL, APPLE, IBM, STARBUCKS “CAST AWAY”: FEDEX, WILSON “JERRY MAGUIRE”: REEBOK

5. “NIKE TRAINING CAMP” ON COLLEGE SPORTS TV (CABLE) FINALE OF “FRASIER”: MILANOS COOKIES (PEPPERIDGE FARM) STARTING TO APPEAR ON CHINESE TV SHOWS

8. THE DEALS IT SIMPLY HAPPENS IT’S ARRANGED AND THE PRODUCT SERVES AS COMPENSATION IT’S ARRANGED AND THERE IS FINANCIAL COMPENSATION (FOR THE MOVIE PRODUCERS)

9. WHY THE UPSURGE? RISING PRICES OF TRADITIONAL MEDIA LOSS OF CONTROL BY ADVERTISERS NEW PHILOSOPHY OF MARKETING BLURRING DISTINCTION BETWEEN ADVERTISING AND ENTERTAINMENT CREATING GRASSROOTS TRENDS (“BUZZ” MARKETING)

10. CASE: INTRODUCTION OF THE BMW Z3 (1995)

11. BMW/MGM DEAL ON “GOLDENEYE” NOVEMBER, 1995: CENTRAL PARK LAUNCH EVENT TONIGHT SHOW APPEARANCE RADIO DJ PROGRAM FILM PREMIERE MARCH, 1996: FIRST CARS AVAILABLE AT THE DEALERS

12. GOALS OF THE LAUNCH PROGRAM BUILD EXCITEMENT REJUVENATE BMW BRAND TRANSFORM BMW IDENTITY EXPAND BRAND FRANCHISE TO YOUNGER BUYERS REVITALIZE DEALERS

13. OUTCOME GOLDENEYE RAKED IN $335 MILLION WORLDWIDE TRAFFIC TO THE BMW WEB SITE TRIPLED AD RECALL (TV, PRINT: 40% OF BUDGET ON “TRADITIONAL” MEDIA) WAS 44% 9,000 Z3S WERE PRE-BOOKED BY 12/31/95 VS. 5,000 PROJECTED DEALERSHIP TRAFFIC INCREASED

14. HOW DO WE EVALUATE IT? MOVE AWAY FROM BRAND ATTRIBUTES TO BRAND “PERSONALITY” OR FROM “ULTIMATE DRIVING MACHINE” INTO “SEXY, WEALTHY, EXCITING” CAN WE MONETIZE PLACEMENTS?

16. WHAT ARE THE RISKS? LOSS OF CONTROL DIFFICULT TO MEASURE IMPACT UNCERTAINTY IN HOW MEDIA VEHICLE WILL BE RECEIVED NEGATIVE PUBLIC REACTION TO SUCH MARKETING EFFORTS

17. SUMMARY MARKETERS ARE LOOKING FOR NEW WAYS TO COMMUNICATE WITH CUSTOMERS MORE MONEY INVESTED IN “NON- TRADITIONAL” MEDIA (SEE ALSO WWW.BMWFILMS.COM) WWW.BMWFILMS.COM … BUT, NON-TRADITIONAL MEDIA NOT GOING AWAY ANY TIME SOON