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FedEx
was the real star of the Tom Hanks movie Cast
Away and
also has a 'special appearance' in the Julia Roberts
and Richard Gere starrer Runaway
Bride.
Will
Smith and Tommy Lee Jones sport matching Ray Bans
sunglasses in Men
In Black.
Pierce
Brosnan vroomed around in swanky BMWs in Bond movies
like Golden
Eye and
Tomorrow
Never Dies.
On
the small screen, the ABC Television Network and MindShare
North America along with Unilever readied a drama
series called The
Days.
HBO's
Entourage
drives
away with Ashton Martins.
McDonald's
played host to the second runner up of American
Idol Jasmin
Trias and sponsored her tours.
A
never seen and heard before incident took place last
year when 276 Pontiacs were given to the audience
members of The
Oprah Winfrey Show.
A
show called Pepsi
Musica airs
on the TeleFutura channel and is a rage among the
US Hispanics.
To
cut a long story short, marketing and programming
are moving ever closer towards a future where brands
need to entertain. As people's attention span levels
drop day after day, brands and media owners are looking
at various ways of engaging consumers without really
interrupting them. Another burgeoning area of concern
for marketers is that a large number of people are
prepared to pay to avoid watching 'ads' in the future.
However,
a ray of hope for advertisers is that consumers are
willing to accept advertising in a different format,
i.e. branded content, as long as it is entertaining
and relevant to them, as per the findings of a survey
by Contentworx in the US.
In
the light of these revelations, the branded entertainment
phenomenon is growing. What's more, marketers are
scrambling to effectively engage consumers worldwide
via advertiser funded content and / or branded entertainment.
The
global paid product placement spending soared 42.2
per cent to $2.21 billion in 2005 with double-digit
growth expected to continue in 2006 and beyond, according
to the findings of a recent survey conducted by PQ
Media.
What's
more, global paid product placement spending in television,
films and other media is expected to climb another
38.8 per cent to $3.07 billion in 2006. This will
be fuelled by the shift in the world's leading markets
toward a paid placement structure from a barter and
added-value model.
The
US is the largest market for product placement at
$1.50 billion in 2005 (up 48.7 per cent from 2004)
and faces no restrictions whatsoever. However, the
law prevents any kind of product placement on television
in the European Union.
This may change though since some changes have been
proposed to the European Parliament and the EU Council
of Ministers for approval that retain the basic principles
in the directive but seek to allow indirect advertising
through product placement - where broadcasters can
charge for featuring a branded product in a programme.
Nevertheless,
it will be another year or so until the issues between
consumer advocate groups like The European Consumers'
Organization and the EU Commission are sorted out
in the UK as far as product placement is concerned.
While The European Consumers' Organization want a
total ban on product placement, the EU Commission
is of the opinion that the ban be applied only to
children's shows and news programs.
As
far as the biggest markets after the US are concerned
in branded entertainment; Brazil ($285.3 million in
2005) and Australia ($104.3 million in 2005) stand
second and third due to lax restrictions. France ranks
fourth due to placements in its sizeable film output,
and Japan stands at the fifth spot.
According
to the PQ Media report, majority of spending in the
US and other markets is derived from five key product
categories:
-
Transportation and parts
- Apparel
and accessories
- Food
and beverage
- Travel
and leisure
- Media
and entertainment
Last
year the high point in branded entertainment was on
The Oprah Winfrey Show. Leo Burnett's client
Pontiac wanted to draw attention to its brand-new
sport sedan, and Oprah wanted to celebrate the start
of her 19th season. The result was Pontiac G6s for
276 surprised audience members on The Oprah Winfrey
Show. The client spent $ 7.7 million on the giveaways,
which was equivalent to close to $ 40 - 50 million
of spends had they taken solace in traditional media.
The result was the immense coverage the brand got
in the print, television and internet media. The web
searches for Pontiac went up by 1000 per cent post
this and the event set a new bar for product placements.
In
2004, the ABC Television Network and MindShare in
the US inked a unique programming deal and involved
Unilever in the project too. They ordered six episodes
of The Days from a drama script by John Scott Shepherd.
Tollin/Robbins Productions developed the pilot and
produced the series with MindShare.
This
relationship stemmed from the programming partnership
between the network and MindShare. The Days centered
on the lives of two-career couple with three kids,
filtered through the insights and wit of the cynical
14 year-old son. The first episode culminates in surprising
events that affect the entire family and set the series
on course at a breakneck pace -- just like real life.
MindShare
secured advertising commitments from Unilever, who
was a partner in the project, and also another unnamed
MindShare client. MindShare clients who signed on
had limited advertising exclusivity in certain categories.
MTV
in the US got together with Unilever and Publicis'
agency Bartle Bogle Hegarty for a new show - The
Gamekillers. This was a scripted reality show
and the first major marketing push behind the Axe
Dry antiperspirant stick. The show did not directly
feature the product but the show's characters, visual
look and typography were tied to the brand when they
appeared in an ad campaign that broke after the show
made its debut in February this year. The show made
a brand statement without mentioning the brand and
while Unilever covered production costs, MTV brought
air time and marketing support to the show.
The
television show featuring business tycoon Donald Trump
The Apprentice is yet another example of branded
entertainment. Burger King, Mattel, Gillette, Intel
and Nescafé are just some of the brands that
have made their presence felt in the show. According
to reports, each brand shells out close to $3-5 million
per episode.
In
one of the episodes, Donald's would-be apprentices,
were asked to design a new toy for Mattel. In another,
they had to launch a new flavor of Crest toothpaste.
On
the other hand, Zeal Television, an independent entertainment
production and format licensing company that has operations
in London, Miami and Dubai has rolled out branded
content with brands like Pepsi (The Pepsi Chart
Show and Pepsi Musica) and Nissan (El
Reto Final: The Nissan Re-Match). The 60-minute
show Pepsi Musica airs on Telefutura and delivers
an aggregate 5.0 rating points, making the show the
unrivalled market leader among US Hispanics. On the
other hand, the reality show El Reto Final: The
Nissan Re-Match was developed in response to the
advertiser's needs for a soccer related property with
promotional extensions and franchising possibilities.
On
the films front, the Tom Hanks starrer Cast Away
is well-known for its prominent product placement
marketing. Two brands that benefited from the movie
were FedEx and Wilson Sporting Goods. One of the notable
"characters" in the movie is Wilson, a volleyball
that Hanks finds in one of the FedEx boxes while deserted
on an island.
The
examples out there are manifold and increasing by
the day. The single reason being - the media environment
is getting cluttered and brands have to work that
much harder to get consumers' attention. Branded entertainment,
if done right, seems to be the answer to every marketers'
questions and worries.
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