"Building & Protecting Brands Through Entertainment Marketing"

Friday, October 29, 2010

Is Product Placement Good For All Brands? By Ian McQueen

All publicity is good publicity... Right?! That's a topic that we could argue for years and present strong reasons on both sides of the coin. What about product placement? Is it "win, win" for all brands?

The answer is a resounding no! Now, you may be thinking, why would your company turn down exposure to millions of potential consumers for a reasonable investment? Let's say you have a new product that you just launched in Florida. You are 2-3 years away from even thinking about implementing national distribution.  A great opportunity comes along to have you brand featured on a television show that is distributed nationally, with viewership exceeding 13 million people per week. The cost is more than reasonable, and the opportunity will allow for your product to appear in multiple episodes throughout the season. This should be a no brainer, you think?!

Well, not so fast. Even if the investment is reasonable, your money will be better spent focusing on opportunities in the market where your product is available. Creating a national buzz when the product is only available in one state is not the most effective way to spend your marketing dollars. You may be thinking "We sell our product online as well." That's great, but there are still millions of consumers who prefer malls and shopping centers. If you tease them with your product on national TV and they are unable to find it at retail, you could take a few steps back from your projected 2-3 year national launch.

With all that being said, my greatest product placement success story was for a small sportswear company that only had California distribution (mostly in San Diego) when we put a product placement program in place. With significant exposure on Yo! MTV Raps, The Fresh Prince of Bel Air and The Arsenio Hall Show, this upstart brand leveraged the buzz and millions of consumer impressions into a national product distribution deal at retail. Not too long after the retail explosion, Above the Rim Hoopwear was acquired by Reebok in a multi-million dollar deal.

So the answer is still no, product placement is not "win, win" for every brand. Consult with an entertainment marketing expert before making any major commitments and investments.

2 comments:

Rex Riepe said...

Nice! I agree for the most part, but I also think the expanding opportunities in product placement allow more and more room for the little guy.

The scenario where a product is only available in one state could be an ideal opportunity for product placement, if they found the right place.

For example, lots of smaller indie flicks are tied to a single location (Think "Garden State"). Placements in such films can offer great exposure for smaller brands, while lending authenticity to the film itself.

And that's even for brands that aren't looking to explode on to the national market, like in your example. Although I'm sure most brands wouldn't mind that (Great placement!).

ISM Entertainment said...

Hi Rex,

You bring a good point, I think key is as you stated is "finding the right place." Indie flicks are a great example, and in that case the brand is true to the location vs. trying to promote nationally.

Thanks for the feedback!

Ian