Sunday, July 12, 2009

Case Study ~ Product Placement




SENNHEISER HEADPHONES
:30 Placement Integration Case Study
THE DEPARTED/Warner Bros.
Cast: Matt Damon, Leonardo DiCaprio, Jack Nicholson, Vera Farmiga
Filmmaker-Martin Scorsese, Producer-Brad Pitt
BOX OFFICE WORLDWIDE: $277 MILLION
Equivalent Media Value and Reach
Film Theatrical Exposure Reach/viewers Equivalent Media Value
THE DEPARTED :30 34,000,000*A $500,000 *C
Film’s additional reach: 50x 350,000,000*B $ 25,000,000
Based upon:
*A. $8.00 ticket average
*B. Cable,TV,DVD: 7 million viewers per outlet
*C. :30 spot valued at $500,000

THE DEPARTED/Warner Bros.
SENNHEISER SENNHEISER HEADPHONES
:30 Placement Case Study
The Placement:
Sennheiser headphones worn by Matt
Damon’s wife, Vera Farmiga in THE
DEPARTED as she listened to a tape of
Matt Damon speaking to the mob boss
implicating himself. A List Entertainment
secured this placement through their long
term relationships in Hollywood and with
Warner Bros. The client did not pay an
additional integration fee to the producers.
Placement Value:
Product placement is inherently valuable. However, the power of a placement program grows
exponentially when products are integrated into scripts, a PR buzz is created, channel and
customer bases get excited, or programs are developed to sell product.
Results:
The approximate viewers in the first run at the theatres of 34 million translates to 384 million as
the film cycles through the distribution outlets. This type of visibility builds the brand’s
awareness and cache at a fraction of the cost of :30 spot a print ad. Sennheiser is associated with
and in a major studio release with one of Hollywood’s most prestigous stars. The film won 4
Academy Awards creating unprecedented exposure for Sennheiser. Audiences will see this
placement for the extended run of the film’s release in the theatres, cable, TV and DVD.
Traditionally film placements have a shelf life 7- 10 years.
Placement in a Prime-Time TV Production
Cost of Placement $11,000
Bonus over $100 million box office $ 5,500
Total cost of Placement $16,500
Box office worldwide 277,000,000
# Viewers Theatrical Release 34,000,000
#Times show runs in 1st year 50
# Yearly viewers 384,000,000
Cost/exposure $.0033

PRINT ADVERTISEMENT IN A MAJOR MAGAZINE
Cost of Ad $60,000
Reach of magazine 500,000
# That flip your page 150,000
# That read ad 15,000
# Times ad runs 1
Cost/Exposure $4.00

Thursday, June 18, 2009

Commercial-less!

June 7, 2009
Television: The Emmys
Commercials You Can’t Zap
By ALESSANDRA STANLEY

THERE is an Emmy award for development, productization and commercialization of interactive video-on-demand (VOD) two-way infrastructure and signaling. (Last year the winner was ... Time Warner Cable.) So it seems odd, even negligent, of the Academy of Television Arts & Sciences not to recognize outstanding achievement in product placement.

(Your sponsor name here.)

The academy may wish to preserve a distinction, however blurry, between creative content and sponsorship, but that principle melted long ago. Television programming and advertising copy can hardly be considered enemies anymore. They are more like the Sabines and the Romans after the eighth century B.C. — deeply intertwined and mutually accommodating.

But some shows place advertisers’ products better than others, and it seems only natural that the television industry should pay homage to the more artful practitioners.

Subway, a sponsor of NBC’s “Chuck,” a spy spoof set largely in a mall, is unlikely to win any prizes for subliminal hints. It recently had Morgan, Chuck’s geeky sidekick and co-worker at the Buy More, offer his crabby boss Big Mike a “chicken teriyaki foot-long” sandwich, well wrapped in Subway logos. “Ah, the taste of the Orient and Burbank,” Big Mike says dreamily. To the show’s credit, the plug sends a mixed message: Big Mike is corpulent, an ambiguous spokesman for Subway, a company that positions itself as fast food for the weight-conscious.

Fans of the show might consider giving Subway a public service award: its sponsorship dollars are a major reason NBC didn’t cancel the show. Despite mediocre ratings, there will be at least 13 more episodes. The show’s viewership, while small, is apparently a good fit for the product.

This kind of synergy is quite retro, a revival of the corporate patronage that shaped the early days of television. “General Electric Theater” brought momentous things to light, including the conservative appeal of its host, Ronald Reagan; “Texaco Star Theater” featured a chorus line of gas-station attendants singing the company jingle to introduce its host, Milton Berle. Nowadays, of course, the dancing servicemen would more likely be worked into the show, filling up the tank of Molly’s new Mercedes on “The Unit.”

Product placement will only grow, as audiences continue to zap through the 30-second commercials that have sustained the TV industry for half a century or more. It is already so ubiquitous and varied that there probably should be several categories. NBC’s “30 Rock” would certainly win for best comic sendup of product placement. The show forged the technique of biting the ad that feeds it: in the first season the writers wove in jokes about having to do product placements for Snapple into its show within a show while doing product placement for Snapple on the show.

This season “30 Rock” went even further, breaking the fourth wall to address sponsors directly. In one scene the network honcho Jack Donaghy extols the many virtues of his Verizon wireless service. Liz Lemon brightly replies, “Well sure, that Verizon wireless service is just unbeatable.” Liz turns to the camera and says, more sourly, “Can we have our money now?”

Dramas like “24” on Fox cannot afford comical asides, so there should be an award for best dramatic integration of a product. “24” could qualify in the category of most dramatic dramatic integration. On the season finale it wasn’t Jack Bauer’s presence of mind that restored justice to the world. It was Cisco Systems’ three-way video conference that empowered the attorney general — and other justice officials — to question the acting chief of staff about her role in the murder of the traitor Jonas Hodges. And it was all on a secure network that could not be hacked by fiendish enemies of the state

Judges should keep in mind that sometimes a product is just a product, and that brand names are invoked as much for authenticity as salesmanship. Ours is a label-conscious culture, and not just with class signifiers like Veuve Clicquot or Mountain Dew. Americans ask for a Kleenex as readily as a tissue, a Coke as often as a soft drink. For many women Spanx has become the preferred short hand term for thigh-crushing, gut-flattening foundation garments. And many contemporary novelists use brand names to identify and place fictional characters: Bret Easton Ellis built a literary career on labels like Charivari and Concord quartz watches.

The Vitamin Water White Party that began this season of “Gossip Girl” on the CW network was a twofer, a plug for Vitamin Water that doubled as a satire of designer-obsessed Hamptons society.

Some viewers questioned the way the 13th season of “The Bachelor” on ABC worked the Goodyear Blimp into the action. Jason took Melissa for a swoony sunset blimp ride that looked mostly like a romantic ad for the tire manufacturer. Maybe, but then again, there aren’t many other names associated with a blimp except perhaps Hindenburg. (Jason and his bachelorettes’ visit to the set of ABC’s ailing daytime soap “General Hospital,” was a far more flagrant example of cross-promotion, the television equivalent of a blood transfusion.)

Reality competitions like “American Idol” have an easier time working products onto the show, even if it just means having the judges drink from Coca-Cola cups. A feel-good, tear-jerking series like “The Biggest Loser” on NBC doesn’t kid around: Jillian, tells her portly pupils to stay hydrated — and use a Brita water filter and pitcher. “The Amazing Race” on CBS is a self-serious competition with appropriate tie-ins like Travelocity. CBS’s extreme camping show, “Survivor,” can afford to be more playful. The sunburned, scrawny winners of a recent challenge in Tocantins, in the Brazilian highlands, were rewarded with a trip to the “Charmin CafĂ©.” That consisted of generic coffee, juice and a working toilet well stocked with Charmin toilet paper. The camera panned to linger lovingly on a stack of rolls.

The next big thing is likely to be TV in Context. This initiative, from Turner Entertainment Networks, connects scenes from series or movies with regular commercials, as General Motors did when it bought a spot on TNT during a break in “The Bourne Supremacy.” Right after a high-speed crash-filled car chase, an ad for OnStar, a service sold in G.M. cars, asked, “Are you counting on your cellphone to be your lifeline in a crash?”

Not all tie-ins are as smooth. On “My Boys,” on TBS, Mike and Kenny, who run a sports memorabilia shop, go to a bar after work and start arguing about business. When a friends asks why they can’t settle their argument at work, Kenny explains they have no time to talk because Mike spends all day singing the jingles stuck in his head. Mike immediately begins intoning, “Nationwide is on your side.” The show cuts to a commercial, and it is for Nationwide insurance.

A rockier plug — an all-time favorite, preserved on the Web site bestweekever.tv — is a snatch of dialogue on a recent episode of the ABC daytime soap “All My Children.”

On it the gallant, white-haired Adam Chandler is advising a young mother. “What I would like you to do is make a list of your favorite dishes and give it to Lucretia,” Adam says in the gingerly tones of a man walking barefoot on gravel. “Because Colby, he, uh, well, Colby convinced her to make all of my dishes with Prego Heart” — beat — “Smart” — beat — “sauces.” He pauses, and adds faintly, “That should be nutritious for you and the baby.”

Perhaps there should also be an award for out-of-context product placement.

Transformers 2

Kmart, BK, Mars Partner With 'Transformers' -- and Each Other
Relationships Include Coupons in Kids Meals, Candy Giveaways
by Claude Brodesser-Akner and Natalie Zmuda
Published: June 17, 2009

LOS ANGELES (AdAge.com) -- For years, Hollywood studios have gleaned millions in soft marketing dollars from brands seeking a lift from summer blockbusters. And Paramount Pictures, with its June 24 release, "Transformers: Revenge of the Fallen," is no exception. A thicket of brands are aligned with the sequel to "Transformers," including Kmart, Burger King and Mars Snackfoods.

Kmart is among the brands aligned with the 'Transformers' sequel.

But those venerated entertainment-marketing partnerships, much like Transformers, have become "more than meets the eye."
In the past year, Kmart has pushed forward with a comprehensive entertainment strategy, relying on a small in-house program-development team that has beefed up the retailer's movie partnerships, making Kmart an official promotional partner rather than simply a licensed merchandiser. Now that entertainment group is taking the retailer's promotional efforts a step farther, crafting reciprocal partnerships with Burger King and Mars.
Remarkable partnership
The Burger King partnership is the most remarkable, as it is not a Kmart vendor. Participating Burger King restaurants will distribute Kmart coupons for "Transformers" toys and footwear in its BK Kids Meals. The retailer will also be featured in the fast feeder's "BK Adventures" newsletter and e-mail newsletter.
Shannelle Armstrong, director of public relations for Sears Holdings, said Kmart had developed a relationship with Burger King through the brands' promotion of Universal's "The Incredible Hulk" last summer, so it seemed obvious to team up on the "Transformers."
"We decided it would be a great partnership," Ms. Armstrong said. "It wasn't mandated by anyone to do it. Brands are just becoming much more sophisticated."
Indeed, like any good matchmaker, Paramount has been careful not to force any couplings between its partners, instead simply making introductions where it sees common interests.
"Knowing the scope of each partner-tie-in program, we are able to identify 'plus up' opportunities for the brands to work together for additional value," said Leeanne Stables, exec VP of worldwide marketing partnerships at Paramount. She added, "Having top-shelf partners makes these pairing opportunities easy, as the companies value that association with other mega-brands."
Ms. Stables cautioned that such reciprocal marketing arrangements between brands must always come as a second or third step, after a partner has committed to a film and has its own marketing program; such a deal is never a precondition to serving as a promotional partner.
Seeking value-minded consumers
The sour economy plays a supporting role in Kmart's partnership with Burger King. The International Council of Shopping Centers expects June sales at retail stores open at least a year to show declines of between 3% and 4% this month. But Sears Holdings, the parent company of Kmart, surprised analysts and shareholders last month by posting a first-quarter profit despite a dismal retail environment, as shoppers increasingly turned to discount stores. At a time when many retailers posted double-digit drops, sales at Kmart stores in the first quarter of 2009 were off only 2.1% from a year ago.
Kmart's Ms. Armstrong said the partnership with Burger King gives the retailer access to the fast-food chain's customer base. "Burger King has a great value menu. They offer a value proposition to their customers, and Kmart does as well," she said. "If there's an opportunity to share our messaging with existing customers or touch new customers with this partnership, it's a win for our brand."
Kmart is also collaborating with other "Transformers" co-sponsors, including Hasbro -- the toymaker behind the Transformers -- and Mars. There will be "Transformers" destination boutiques within Kmart stores beginning June 22. And Mars will be creating themed window displays and hosting in-store events at two New York store locations. Movie tickets, Mars and Kmart gift cards, and Mars samples will be given away at the events.
Extra promotion for movie
Kmart is doing a significant media buy related to the movie as well. There will be TV spots and circular ads, as well as a Kmart-created comic book distributed in theaters.
All this extra interest in "Transformers" is welcome at Paramount, whose automotive partner, General Motors, was forced by its bankruptcy to provide less support to the sequel than the original. But despite the loss of some of GM's horsepower, "our overall partner campaign on this film even exceeds the program we had the original 'Transformers' movie," Ms. Stables said. She added, "We're in the enviable position of having top brands eager to be involved based on the success of the first film."
Kmart's Ms. Armstrong said she expects the retailer to pursue other, similar partnerships, noting that it's a competitive advantage in the retail space.

Tattoos

Anna Morgan signs product placement deal with gaming company
June 10, 2009 PPN Staff
Anna Morgan, an adult entertainment star, has signed a product placement deal with mymmoshop.com.


The Russian agreed to tattoo the logo of the online gaming firm across her bosom for $500,000.
The company said that the deal will give them unique exposure—across websites, magazines, and TV screens throughout the world.


“Anna can appear in 50 to 100 films per year, so this gives us a lot of exposure for years to come,” the companysaid in a statement.


The arrangement will be formalized next week in a tattoo parlor in Santa Monica.

Microsoft

Microsoft Bing Product Placement
June 05, 2009 PPN Staff
Microsoft’s foray into the search engine market is Bing, a new search engine that is set to compete against Google. To boost exposure, Bing is said to have secured product placements in the Jimmy Fallon, MTV, and Hulu.

In a recent interview, Yusuf Mehdi—senior vice president of online services for Microsoft in Redmond—spoke about Bing.

“It’s a very tall marketing challenge and a very tall product challenge,” acknowledged Mehdi. “It’s going to take multiple steps to get where we want to go,” he added, “and this is the first step.”

Mehdi says that they are aiming to win a fan base and to start growing a market share. He says that most search engines have lost market share in the last five years, except for Google.

“The key will be whether we deliver a product and connect with people emotionally in the advertising,” emphasized Mehdi. In order to do that, he says the company has to do something “surprising.”

According to some statistics, Bing has had early success. In terms of web traffic referrals, Bing is outperforming the regular Microsoft Live/ MSN organic search functions. The site has been an active referrer. But compared to the bigger search engines, Bing still has much room to grow.

Transformers

Transformer Movie Incorporates The Strongest Product Placement In Film History
July 16, 2007 OJ Fagbire
Although product placement in major movies is nothing new to consumers, the Transformer movie is set to unleash unprecedented product placement in the form of GM cars.
The movie, produced by Steven Spielberg, is based on the very popular line of toys sold in the 1980s. Fans of the transformer action figures, comics and cartoons have long awaited the release of this major film.
Auto manufacture GM hopes to cash in on the popularity of the film since four models of the company's vehicles have starring roles in the film. Each model "transforms" into a battle-raging robot that fights the bad guys (not GM models) in order to save mankind from the destruction of their planet.
GM associates are excited about the possibility the movie poses for their company.
"We try to find properties where the cars are the stars, and literally our cars are the stars of this movie." Said Dino Bernacchi, associate director at GM.
"You don't get any more heroic than the roles that our four vehicles play."
The four models featured in the movie include a Chevrolet Camero, currently our of production but "revving" up to be re-released next year, a Hummer H2, a GMC Topkick pick=up truck and a economical Pontiac Solstice convertible, all conveniently playing good guy roles.
Senior vice-president LeeAnne Stables announced to the Reporter, "I think this is a once in motion picture history-type opportunity for an automotive company where you have a film that actually incorporates multiple cars that are actually characters in the film."
Reports state that GM did not have to pay for the right to star in the film, but instead helped the production company offset marketing costs by featuring movie clips in several ads for GM cars.
The director of Transformers, Michael bay, in turn directed five commercials for the car company.
Park Choong-whan is a professor of marketing at the University of Southern California. Park says that the GM-Transformer partnership is "probably the most aggressive form of product placement strategy."
However, Park warns, that doesn't necessary mean it will work, "People may discount the true effect that may be possible from this tie-in because they already know about it," he continues, "There's a kind of boomerang effect…If prior attitudes of the people toward General Motors are negative, then it many not have a strong impact at all."

Subway

Subway will continue to deliver sandwiches for NBC’s Chuck
May 22, 2009 PPN Staff
NBC has signed a deal to secure Subway’s continued support for “Chuck”—a comedy spy series that was reportedly on the network’s chopping board.
The sandwich maker had already aroused attention for its presence in the WB-produced show. In one episode, several character enjoyed Subway sandwiches during a bachelor party. In another episode, Morgan (a character in the show) mentions Subway’s marketing slogan as part of the dialogue.
“This is far beyond just a logo placement or a product placement. It's more about the messaging,” mentioned Tony Pace, chief marketing officer of the Subway Franchisee Advertising Fund Trust, during an interview with Ad Age.
The show has averaged a 2.8 rating during its second season, which is not really that high. However, it has an extreme fan base and Subway’s interest, along with studio lobbying, will keep the show going.


“We had a number of our shows in the same position, and we were really looking to see how the fans were reacting, knowing the show was on the bubble and how our advertisers viewed the program,” said Ben Silverman, co-chairman of NBC Entertainment and Universal Media Studios in a recent media conference call.


Silverman says that Chuck will return next year and while the studio only ordered 13 episodes, there’s a chance that NBC might ask for more next summer.


Source: AdAge.com