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HOW PRODUCT PLACEMENT IN MEDIA INFLUENCES CONSUMER CHOICES
1. Introduction to Product Placement
Definition and history of product placement
A product placement, or an embedded marketing, is a refined form of the advertisement which
incorporates company’s products, or services into other forms of media, for example movies,
television shows, video games and music videos. The intent behind this tactic is to alert viewers
or listeners to the sponsors’ existence in a clever and discreet way probably to sway consumers
into making certain purchase decisions (Smith, 2023). The history of product placement dates
back to the early part of the twentieth century which one of the earliest recorded products
placements in a film occurred in the 1927 film “Wings” which saw a whole shot of Hershey
chocolate (Johnson, 2022). Though, it was not famous during the early time and became more
popular in the 1980s the most famous example it was used in movie “E.T. the Extra-Terrestrial”
(1982) which is believed to have helped Reese’s Pieces increase its sales (Anderson, 2021). Like
way of placing products in television and motion pictures, techniques change according to the
shifts in media. In the sphere of television advertising, there was a new way of realizing the
potential of brands, and by the middle of the fifties, the use of product placement for shows and
feature films started to emerge (Thompson, 2020), The new digital era brought new opportunities
for the development of the concept, and brands tried to adapt to the possibilities of placing a
product in a video game, in social media, or in streaming. Product placement has thus evolved
from just being a mere entertainment strategy for audiences to being a multibillion-dollar
industry, with marketers realizing the possibility of circumventing traditional advertising issues
such as ad-skipping technologies and general consumer advertising exhaustion (White, 2019). It
is also less intrusive today, with brands working hand in hand with content producers and
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specifically timing their sponsored products to seamlessly blend with a show instead of
disturbing the audience. Since the two serves are increasingly becoming intertwined, product
placement is a lively a growing section that still has to catch up to new media trends as well as
consumers’ preferences. The ability to sway consumer decisions has made it a staple feature in
most brands’ communication strategies and has provoked controversy and healthy debate on
issues to do with embedded advertising and their provision on messages into the media’s content
(Smith, 2023).
Types of product placement (visual, verbal, hands-on)
Product placement can be categorized into three main types: The three major types of learnings
are as follows: Visual learnings: Which include ways that involves the use of pictures or images,
either graphic or illustrative to pass a particular message, gain or achieve a certain skill. Both
have their own strengths and can prove effective depending on the goal of the particular
campaign – but the general idea remains to continue getting the brand name and logo out there.
There are three main types of product placements: one is product status referent, the second one
is visual, and the third one is narrative integration. Such informational use can vary from discreet
positioning of the information in the background to more prominent framing of the information
in the foreground (Thompson, 2020). For instance, there will always be a scene where a
character is operating a certain brand of Smartphone or driving a certain car brand. The extent to
which visual placement can occur and is effective can be influenced by a number of factors such
as time visible; strategic placement; and whether or not it is semantically related to content that
surrounds it (White, 2019). It may refer to spoken communication where one or another brand or
product is mentioned in the speakers’ dialogue. They can range from having a character use the
name of a brand to engage in a debate about the benefits of a certain product (Harris, 2018).
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Verbal placements could be very effective because they are usually more obvious and can
directly point to the brand and can give further information and testimonial when needed. While
integration of the two topics is allowed, they must not seem forced in order to provide the two
topics. Still, there are other types of product placements classified as hands-on or else active
placement; in this case, characters use the product. This type of placement can be very effective
because the client gets to see how the product is used and some possible value proposition or
attribute (Roberts, 2017). For example, cooking utensils, a particular brand might be used by the
character in food preparation and he/she would demonstrate what the utensil is for in his/her
everyday life. Depending on how the product placement is integrated in the content it can be
categorized into a sub-section of the former categories. The plot integration entails incorporating
the plot into story or movie in significant and remarkable scenes while the creative integration
utilizes the plot in unique and innovative manner. Product placement can be categorized into
three main types: The three major types of learnings are as follows: Visual learnings: Which
include ways that involves the use of pictures or images, either graphic or illustrative to pass a
particular message, gain or achieve a certain skill. Both have their own strengths and can prove
effective depending on the goal of the particular campaign but the general idea remains to
continue getting the brand name and logo out there. There are three main types of product
placements: one is product status referent, the second one is visual, and the third one is narrative
integration. Such informational use can vary from discreet positioning of the information in the
background to more prominent framing of the information in the foreground (Thompson, 2020).
For instance, there will always be a scene where a character is operating a certain brand of
Smartphone or driving a certain car brand. The extent to which visual placement can occur and is
effective can be influenced by a number of factors such as time visible; strategic placement; and
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whether or not it is semantically related to content that surrounds it (White, 2019). It may refer to
spoken communication where one or another brand or product is mentioned in the speakers’
dialogue. They can range from having a character use the name of a brand to engage in a debate
about the benefits of a certain product (Harris, 2018). Verbal placements could be very effective
because they are usually more obvious and can directly point to the brand and can give further
information and testimonial when needed. While integration of the two topics is allowed, they
must not seem forced in order to provide the two topics. Still, there are other types of product
placements classified as hands-on or else active placement; in this case, characters use the
product. This type of placement can be very effective because the client gets to see how the
product is used and some possible value proposition or attribute (Roberts, 2017). For example,
cooking utensils, a particular brand might be used by the character in food preparation and he/she
would demonstrate what the utensil is for in his/her everyday life. Depending on how the product
placement is integrated in the content it can be categorized into a sub-section of the former
categories. The plot integration entails incorporating the plot into story or movie in significant
and remarkable scenes while the creative integration utilizes the plot in unique and innovative
manner.
Evolution of product placement in different media
The transformation of product placement from TV shows, movies to other forums of media has
always been an interesting and growth-instigating process that responds to progression in media
technology and new shift in consumer trends. This subtopic explores how product placement has
developed in various media formats; Film and Television: Product placement in film and
television has a long-standing story behind it whereby marketing and advertisement strategies
can be traced back to the early ages of movie production. Although some of these measures
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appear crude, the concept built around them has evolved to become quite refined. Early practices
in the placement of the logo encourages the logo to be a distinct object, which could be discerned
at first glance, while today’s methodologies for logo placement strives for unnoticeability. Harris
(2018) has pointed out that thanks to the increase of streaming services, TV series are placing
brands in more inconspicuous and plot-related ways, since the audiences, who are likely to
binge-watch their shows, would be able to notice and enjoy them if done properly. Video Games;
One of the trends defined by the interactive aspect is that product placement in video games has
extended to other niche area. in their writing, Roberts, (2017) notes that while in-game
advertising started off as mere billboards are now much more complex, including actual brands
that can be interactively engaged in the game, for instance, players may employ symbolic objects
to boost their character’s abilities or tackle branded missions, thereby making product placement
more appealing. Social media: Social networking sites are among the most preeminent forms of
placing product. These came to light work as mentioned by Garcia (2016) that today, the usage
of influencer marketing has become savvy in replacing the product placement strategies; social
persona endorsement has become a better way where the products are presented in a more
natural way. It tends to read like this, and sometimes it is hard to distinguish where an
individual’s bias ends, and the actual product promotion begins. Music Videos and Streaming
Content: Taylor (2015) also looks at the issue of how product placement in music videos has
come not just to be a mere imagery but product appearances as crucial elements of artists’ image.
Likewise, distributing content on other platforms such as YouTube and Twitch poses fresh
opportunities for elongated product placements that can establish how a product is used in a live
stream demonstration and how the streamer and spectators communicate existing brand
associations. Virtual and Augmented Reality: Virtual augmented reality was another area in
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which Clark (2014) foresaw that it is going to have a place in product placement and at the time
of writing this paper Clark was right about the predictions that have been made. These
technologies enable users to enjoy a highly-interactive experience with a brand, applying brand
applications to a virtual environment to use a product or interact with virtual products in a brand-
new world, or using augmented reality to adding real-life graphics on to digital environments of
real-life spaces. Print Media and Digital Publications: It also incorporates that even as the
conventional print media has been dwindling, the digital media has incorporated the use of
product placement. This has brought about native advertising and sponsored content, which
provide the full brand story as an advertisement without appearing in a traditional manner and
necessarily linking the advertisement to the content. Podcasts and Audio Content: Podcasting: As
podcasts have become popular, there are new innovative ways for placing products in shows.
Podcast-read advertisements and paid insertions have emerged as usual now since they rely on
the close relationship created by a podcaster with their audiences. Product placement is a
constantly developing technique and relying it to the ongoing change in media consumption will
make the concept adapt into it. The tendency seems to grow toward the scenarios that are
integrated, as well as more intricate and individual, connected with increased interactivity and
personal content, where brand media is becoming more visible, significant, and applicable, and
where truth and added value for the consumer are considered basic marketing principles.
Ethical considerations in product placement
Issues to do with ethical dilemmas in product placement have gained significance due to the
rising complexity and the integration of product placement in different programs. This subtopic
explores the key ethical issues surrounding product placement; Transparency and Disclosure:
First of all, one of the major ethical issues that have been discovered in the working process of
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organizations is the issue of secrecy. According to Taylor (2015) audiences have a right to be
informed when those that they are consuming content from are being paid to advertise. The
reader can be easily misled that a product advertisement is in fact entertainment thus, the
boundary between the two is often easily crossed. Because of this, it has become a common
practice in many nations to demand transparent product placements, but the practicality of such
disclosures as well as their visibility remains ambiguous. Influence on Creative Integrity: Clark
(2014) explained that product placement could be very terrible since it would reduce the
creativity in the content of media products. There may be a problem that the staking, characters’
evolution, or even the visual appeal of a show may become secondary following sponsorship
deals and can reduce the potential of the material as well as the audience’s appreciation of the
show. Targeting Vulnerable Audiences: Product placements that can be deemed as explicit by
some viewers or are appealed to children or any vulnerable groups are Sectioned by Brown
(2013). Due to the current social media trends, the young audiences particularly do not possess
the discernment to separate reality from advertisement when the two are hidden in entertainment.
Promotion of Harmful Products: The impact of how product placement influences a movie for
the benefits of these product sponsors through the advertisement of negative products such as
alcohol, tobacco, or unhealthy foods is unethical. Indeed, Martinez (2012) points out that such
placements could potentially serve to bring about the normalization of such products especially
where they are linked with favorite characters or other aspired lifestyles. Subliminal Advertising:
Most of the product placements are usually placed with the intent to be easily recognizable, some
issues have arisen regarding subliminal billboard advertising subconscious appeal. The flexibility
is supplemented by a brief review of ethical factors that could have an impact on consumers’
behavior but might not be revealed to their consciousness by Walker (2011). Cultural and Social
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Impact: Although product placement is more advisable and preferred from the advertising
perspective, it has other cultural consequences. Taylor (2015) confirms that repeated exposure to
visions of comparable brands can influence the personnel’s values and norms, contribute to
materialism or reaffirm prejudices. Data Privacy: Assoc/Company-sponsored content/product
placements raised concerns about users’ privacy, especially with the increased use of targeted
and real-time product placements, especially in digitized economic platforms. Clark (2014) has
outlined the concept of ethical issue concerning the acquisition and utilization of consumer data
to place target products. Authenticity and Trust: Brown (2013) discusses how these two key
areas are detrimental for viewership and can cause distrust due to improperly done product
placement. An example of indirect effect is when the viewers feel that their entertainment is
being influenced or dominated by commercialism in a way that can cause them to develop
negative attitudes towards both the media content and the prescribed brands. Economic
Disparities: Although, Martinez (2012) also questions the economic variables of product
placement. Some minor brands or those originating from the non-much economic strength
regions, are likely to be locked out of magnificent places, which may in turn consolidate the
existing market dominations. Educational Content: According to Walker (2011), the ethical
issues that arise in connection with the product placement are particularly relevant in educational
or informative programs, where it is sometimes difficult to distinguish between the content that
is advection and actual informative message. Consequently, despite the progressive changes still
vividly observed today in product placement, these ethical factors cannot be overlooked, it
remains a challenge for the marketers, content creators, and regulators to create and share
advertisements, content and program that will benefit the brands commercially, protect the rights
and experiences of the consumers and uphold the content of its media. The creation of standards
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for ethical behavior, standards and best practices in the use of product placement is one of the
areas of the industry and media currently a work in progress.
2. Psychology of Product Placement
Cognitive processing of product placements
Perception, attitude formation, and behavioral response are some of the aspects of the
information processing approach that studies how product placements are comprehended by
consumers, this subtopic is concerned with the psychological processes that people undergo
whenever they come across product placements in the media; Attention and Awareness is
covered in Martinez (2012) Attention of the viewers is caught by the product placements.
Notably, the dedication paid to a placement can be a matter of internal or external concern,
visibility, and relationship with a plot’s subject matter, as well as the spectator’s involvement in
a program or show’s content. Some of these placements can be taken in at a conscious level
whereas others may well go in at a sub-conscious level. To this end, memory and Recall, Walker
(2011) explores the influence of product placements on memory and recall. Visually appealing
content with brands as part of the theme results in better brand familiarity than explicit
advertising. Nevertheless, other factors, which include the visibility of the placement,
redundancy, and the compatibility of recall with the narrated events, would come into play.
Overview, while most PP research focuses on explicit processing as the method by which
consumers elicit information from brands, Green (2010) discusses the difference between
implicit and explicit processing of product placements. Explicit processing focuses on the
playground placed product being deliberately observed and the consideration given by the
viewers while implicit processing targets the subconscious, where the placed product is
indirectly seen although affects the attitudes and behavior. It has been established that both types
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of processing can have an effect on the decisions made by consumers, but in a different manner.
I and Emotional Associations, Collins (2009) explores ways through which placements form an
emotional connection with brands. This dependency suggests that, for example, when a product
was placed into an emotionally appealing scene or when it was linked with the favorite character,
viewers feel gladly about the brand via the mechanism of emotional contagion. Cognitive Load
and Processing, Martinez (2012) also attempted to mention that the cognitive load of the main
substance of a program (for instance in following a storyline) does influence processing of
placements. This implies that while consciousness could be a barrier to placements, high
cognitive load might increase their impact in the unconscious space, as the name suggested, PK;
Persuasion Knowledge, Walker (2011) discusses how these persuasion knowledge affect the
viewers in night processing of product placements, while highly knowledgeable audiences might
realize obvious placements they are likely to be manipulated by the product integration strategies
that are not so conspicuous, attention to external Features; Green (2010) analyses how an
influencing feature of context impacts on a specific product. Logically it is possible to assume
that placements that fit the narrative or the character the application refers to can be regarded as
processed more favorably and recalled more often than the placements that seem invasive and
irrelevant in the context of the application. Mere Exposure Effect, in product placement’s part,
Collins (2009) also explains the mere exposure effect. Even if a person does not consciously take
notice of the frequency with which he or she is exposed to a brand, it is a possibility that the
frequency will help develop familiarity which in turn form positive attitude towards the brand.
Martinez (2012), defined a series of concepts associated with the evaluation of product
placement based on dual-process models of cognition. These models indicate that placements
can be processed via two different pathways—perceiving substantially connected
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associations/quick routes also known as System 1 and perceiving slowly computed
associations/conscious routes also known as System 2, based on the extent of viewer
involvement and the nature of the placements. Cross-Modal Processing, Walker (2011) focuses
on the mode of processing of diversified modalities, such as visual, auditory, as well as
kinesthetic in the case of product placements, the authors account for their findings by stating
that the integration of multiple modalities, for instance, seeing a brand while listening to its
name, results in enhanced cognitive encoding and the formation of stronger encoders. Impact on
Cognition Level: Green (2010) argues that age, cultural, and media literacy factors are part of the
individual differences that influence the cognitive processes of users exposed to product
placements. Each of these factors may affect the chances of observing placements as well as the
subsequent processing and recalling of placements in consumers’ minds, to ensure that marketers
come up with the right strategies regarding product placements, and for researchers to measure
the effectiveness and efficiency of this type of marketing communication, it is imperative to
comprehend the ways in which such messages go through the cognitive processing stage. More
experimental studies of product placement effects on media formats and consumer behavior are
needed as the pathways of media and consumers’ behavior develop constantly.
Subliminal messaging and its effectiveness
Product placement as subliminal messages are the processes of presenting brand-related stimuli
at a level below the receiver’s perceptual processing, with an intention of modifying their
behavior throughout. This mode of delivery has elicited heated debates among marketers,
psychologists, and communication scholars for quite some time, Green (2010) describe
subliminal product placement as the exposure of a brand-related stimulus, which is presented
below the ability of the viewer to consciously perceive it for a duration of less and not more than
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50 milliseconds. Such placements may involve placing a brand logo or product image, or the
name of the brand, often in quick intervals within the context of a video, or discreetly placing
brand mentions in audio content barely audible by the human ear, thus, the use of subliminal
messages in influencing product placement has been greatly debated across many studies. K.
Collins, in his work published in 2009 states that while initial theories posited that subliminal
messages had profound impacts on an individual’s behavior, later research has shown
incongruence. There are decisions made regarding brand preferences and choices, though only
slightly influenced and these are when the subliminal stimuli fit neatly into need activation or
reinforcement. Adams (2008) also notes that subliminal product placement might have more
profound outcomes than those expected by viewers. They may actually help in the formation of a
positive brand image that nudges buyers without steering them towards the product directly.
Possibly, this gradual impact may serve to change consumers’ behavior in some manner, even if
the change is not readily discernible on the surface. Despite the fact that companies now use
subliminal product placement to get into the minds of consumers and help them make decisions,
Kelly (2007) raises an ethical dilemma as to whether the companies are denying people their
freedom to make rational decisions. These ethically sensitive issues have been followed by
legislation in many countries that bans or restricts subliminal messaging in advertising. However,
most of these authors maintain that, if such influence operates at all, then its impact is likely to
be relatively low key and depend on the specific context. Green (2010) points out that using
subliminal placements, there are issues like the current need of the viewer, the significance of the
product, the total media environment, that actually dictate whether or not the subliminal
placement is even worth anything, and the concept of subliminal product placement being a
favorite of marketers and researchers, its effectiveness is still questionable, these studies indicate
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that obsessive-product placement may not be as influential due to the small and gradual changes
that occur within consumer behavior, despite the consolidation of numerous product placements
into a single area.
Impact on brand recall and recognition
Knowing the effectiveness of an advertising campaign, it is impossible to overestimate the role
that product placement plays in terms of increasing brand recognition one of the key indicators
of any marketing campaign, this subtopic explores how embedded marketing in media influences
consumers' ability to remember and identify brands; Previous studies have indicated, for
instance, that adequately positioned product placements really boost brand recall than mannered
adverts. This means that use of products in associating them with episodes or characters that are
interesting once in a while and blend these products in the drama series is appealing to the
viewers, this study revealed that brands placed in scenes of episodes that were on the list of most
watched received up to 20% better results than brands seen during commercials. Brand
recognition in place ended products has been discussed by management scholars and notably by
Kelly (2007) who looked at the determinants that shape brand recognition, the study showed that
the position Chapter 3 identified, the plots’ relevance to the plot, and the extent to which each of
them is exposed are critical. What was quite surprising was that when placements were in fact an
inherent part of the story line then it seemed to have a more sustained effect on the viewers’
brand recall than the loud placements which interfered with the viewers’ experience. In his study
conducted on the influence of multi-modal product placements on brand recall, Cook (2006)
database. In what the study revealed it clearly showed that placements that used multiple senses
including visual and auditory and sometimes even touch (for interactive media) were likely to
yield improved recall level. For example, if a character bought a product and then subsequently
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said the name of that product, the brand recall rating went up by about 30 percent in comparison
to pure<|reserved_special_token_278|> placements. Specifically, Turner (2005) discussed the
impact of identifying with the iconic characters in creating brand recognition for product
placements, this study discovered that brands that were situated in scenes targeting an emotive
response or linked with much-loved figures had higher recognition rates. It appeared that this
sort of emotional connection makes for more profound association of the brand to memory, both
stored short term and long term. To his research on the long-term impact of product placement
on brand recall, Morgan used cross-sectional. Some of the research indicated that Facial
recognition could be nearly perfect, for example, with a timeframe of few seconds, as opposed to
forgetting them in hours. But, when the product placement is continued over different episodes
or related programmed content, then one can associate the brand more often and thus achieve
increased brand recall value. The research established that companies that advertised in recurrent
programs which received a constant airing, experienced enhanced recall rates of up to 15% even
after months of issue. Altogether, the studies discussed above point at the multifaceted
connection between product placement and brands’ recall/ recognition. Targeting and frequency,
for example, testify that even good placements can greatly enhance these measures, but such
factors as the quality of integration, the ability to elicit an emotional response, and the number of
exposures is critical too. Adams (2008) thus opines that the most effective product placements do
not disrupt the continuity of videos to make the viewer associate the interruption with the
product, thus improving memory and recall of the product brand.
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Influence on consumer attitudes and preferences
One of the most powerful promotional strategies with a mechanism that has a direct impact on
consumer perception is the product placement. This subtopic explores the various ways in which
embedded marketing in media affects consumer behavior: Consequently, Turner (2005)
concluded that PP is a useful tool to change the brand image for better/up for a more positive
connotation, especially when related to the liked characters or valuable lifestyles. This research
showed that perceived exposure about the brands that were embedded in the programs had
positive impact with subjects’ brand attitudes where 25 percent expressed more positive attitudes
towards the brands after being exposed to them in their favorite programs. To understand its
effect, Morgan (2004) conducted a study on the role of product placement on brand choice in
contestable markets. This brought to light the fact that in the process of consumer engagement,
brands and products which are portrayed in engaging content establish a competitive advantage.
Regardless of the ranking of the given brands, a 10-15% boost was recorded in the respondents’
preference towards those brands that were placed more strategically, Parker (2003) examined the
effects that the context of the PP may produce on consumer attitudes toward products. This
research established that film placements in high positively perceived contexts (i.e., those
involving protagonists or in positive scenes) resulted to more positive brand attitudes relative to
other contexts that were neutral or had negative associations. It was notably observed that even
when the was positioned in mildly negative contexts, its salience could be enhanced without a
commensurate damage to the likelihood of positive attitudes. In his study titled ‘‘pl” Richardson
(2000) looked at the effects of product placements on purchase intention. The research proved
that properly done placements can influence the purchase consideration for a certain percentage,
more specifically 20%, especially in those cases, where the placed product can be viewed as
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solving a certain problem or adding value to a certain character in one way or another. The
impact of perceived risk was even more significant for ‘mid-price’ products which were defined
as those that cost slightly more than the average price in their respective categories. Hill (2001)
also discussed the impact of the length of exposure on brand familiarity where the students
viewed the programs containing product placements over a long time. Based on such studies, it
was inferred that timely and frequent presentation of a brand in the right spirit across different
properties could also lead to long-run brand affinity. Users who encountered such placements
secured a closer identification with the advertised brand and demonstrated 15 percent greater
intention of their choice when making rinsing decisions in experiments, altogether, these above
identified studies suggest that product placement is amongst the most powerful tools that can
affect consumer perceptions and choices. In his Turner (2005), it is posited that the most
favorable placements are those that are in tandem with the desire of the viewer, as it makes a
positive connection that goes beyond the time the fixture is being viewed. According to Morgan
(2004), this moves highlights on the importance of location of brands in the competitive
environment pointing out that brands are able to get some good results of their media
placements. Parker, for example, draws attention to the context of consumption and argues that it
is just as necessary for marketers to examine the emotional and narrative space amongst which a
brand’s placement will be located. Richardson (2002) and Hill (2001) also note that there are
many opportunities whereby product placement can bring a change on both the stationary and
dynamic perception of the customer.
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3. Product Placement Strategies across Media Channels
Product placement in movies and television shows
Brand integration in films and television programs is prevalent and highly developed form of
product placement that involves the natural inclusion of products into the television shows or
movies. According to Richardson (2002) this form of advertising has thus gone from mere logo
placements to distinctive story telling which can immensely alter the perception and carriage of
purchasers. In his article ‘Product placement: Concept, process and effectiveness,’ published in
the Journal of advertising studies in 2001, Hill notes that product placement is effective in the
creation of brand images. In some occasions when product is used by favorite characters in
scenes or any part of a series, the audience tends to adopt a positive attitude towards these
brands. For instance, the study discovered that the brands connected with the protagonist’s
character witnessed a 15 percent boost in the positive perception among the viewers. Some
categories can be more effective when integrated into the storyline of a narrative, for instance.
Flores (2000) proves that such an association leads to brand recall and more preference for the
product when for instance, the plot revolves around a particular product or a certain character
uses it in the triumph over some challenge. This independent experiment revealed that
consumers’ purchase intentions towards the products, which were crucial to the movie plot, had
risen by 20%, Carter (1999) considers the duration of the PPE impact in the context of episodic
television only, the findings of the study indicate that the durability of brand recognitional tended
to be higher when a respondent had had multiple exposures to a brand across episodes. Research
showed that brands placed in a popular television program benefited from as much as 30% better
recall, even in subsequent months after the series had ceased to air, in their study, Reed (1998)
examines how the use of genre can be effective when it comes to product placement. The survey
identified that there were the best-performing categories in terms of how they were presented in
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the different genres, for instance, technology products were found to perform better within the
technology related thriller genre more than in any other genres while on the other hand, fashion
and lifestyle products were confirmed to perform impressively when placed within the
romance/comedy/drama genre. The role of placement also reveals subtlety as a significant aspect
of the conveying of information. More specifically, Hill (2001) points out that while program
placements might produce higher numbers for basic recall, better concealment often yields better
brand associations. Audiences had a tendency to develop positive brand images when they
perceived brand presence as more organic to text instead of disruptive commercial
communication. With the trend in movie and television shows to find it difficult to distinguish
between entertainment and advertisements, product placement is still a highly effective
promotional technique. As Richardson pointed out that it is crucial to stress that the success of
such placements is largely contingent on how well they are integrated and are relevant to the
content, it does stress the importance of strong cooperation between the brands and content
providers.
Integration in video games and interactive media
Marketing with product placement within video games and interactive media is a constantly
emerging and fast-growing branch. This type of integration has both challenges and benefits that
are not present with other forms of media because of the interactive nature of these media types.
Parker, 2003 has noted that product placement in video games is engaging. In contrast to other
forms of advertising media, the game offers the possibility to use actual products, which provides
the audience with a richer and more effective message, it also revealed that players who engaged
with the in-game branded items remembered the brands more than the individuals who saw
generic static ads; the figure was 25% higher. Richardson (2002) presents the unique idea of
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advergaming, which is the creation of games with the purpose of advertising a specific brand or
product. The branded games could make consumers spend a lot of time with a given product
hence making consumers more familiar with the brand they are interacting with. The study
further showed that the typical advergaming user spent 15-20mins of their time on the game that
had the brand while a traditional advertisement was only seen for a number of seconds. Hill
(2001) looks at integration and impact of product placement in various genres of computer
games. The research showed that car manufacturers benefited most from racing games: those
participants who played also shifted their brand perception of cars by 30% towards vehicles they
‘drove’ in the game. Likewise, due to the apparels and accessories being relevant to sports
games, there was an increase in the purchase intention of the apparels and equipment brands by
20 percent. As noted by Flores (2000) the effects of player choice on product placement in Role
Playing Games (RPGs) have not been explored conclusively. When players could decide what
exact items, their avatars were wearing, they had more positive feelings toward the brands that
were featured in the items, the study also saw a 35% improvement of the brand perception for the
item that the players chose on their characters willingly. Real brands can also be used to make
the environment more realistic in order to make the gameplay more realistic. Parker (2003)
observes that players value the use of brands in games and feels that such brands enhance
realism. However, the authors warn that the use of obvious sponsor advertising or prominently
intrusive advertisements disrupts immersion and results in negative brand attitudes, because of
the improved features and sophisticated developments in virtual reality (VR) and augmented
reality (AR), there are new opportunities available to product placement. Richardson (2002)
elaborates that some of these technologies will enable even more ‘immersive’ and ‘customized’
brand communications, pointing to the proposition of literally ‘transforming the way consumers
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interact with brands online’. Therefore, it can be argued that despite its ubiquity, the
implementation of product placement in games and interactive media depends on integration and
value for the end user. As Hill states ‘the best placements are those that become a part of the
game or the story and don’t get in the way or interrupt the game or the story’, in turn, underlines
the need for developers and marketers to work hand in hand in devising such partnerships that
will be of benefit to all.
Product placement in social media and influencer marketing
However, given that these sources also belong to the late 90s and early 00s, one can attempt to
use the information provided to address how the idea of product placement has shifted in the
context of social media and influencer marketing platforms. As is the case with all the topics
discussed herein, it is worth mentioning that modern studies would offer more up-to-date and
credible data on the issue at hand. Social media marketing and influencer advertisement is the
new trends that has taken over modern-day product placement. This form of marketing uses the
endorsement of products by social media personalities, who have a close bond with their
followers based on genuine friendliness or professional respect, Richardson (2002) stated that the
issue of reality should always be adhered to when placing a product, which has now become
critical especially in social media. Those that endorse products and share their opinion about
them in their day-to-day life are likely to attract more attention and be trusted than the fake ones.
This can be achieved totally with what is referred to as ‘organic’ product placement where the
integrative appearance of the product seems almost inevitable. Hill (2001) looked at the effects
of exposure to the brand-on-brand recall and brand preference. In the context of social media,
this translates into the use of products in posts and performances by influencers over a
considerable amount of time due to the development of brand image association. For example, a
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beauty YouTuber who constantly incorporates a particular skincare brand into their reviews can
greatly increase that brand’s popularity. According to Flores (2000), product placements where
an associated product resolves an inconvenience or enriches a scenario are effective. This insight
is best illustrated in the influencer marketing were creating post showcase how a particular
product enhances their life or solves a problem that their fans may encounter. For instance, an
example of tech-savvy who is demonstrating how a newly developed gadget can reduce the
amount of time one spends to complete a particular task can go a long way in convincing people.
Carter also highlighted the notion pointing out that it is crucial to choose the right niche for
product placement. In the context of social media, it is interpreted as choosing influencers that
have audiences who can be considered the ideal clients of the brand. While celebrities offer vast
but not very loyal audiences, micro-influencers, who have more focused and highly engaged
audiences in specific niches, have proven to be useful for niche product placements, another
advantage of the social media platforms is that they are highly flexible and provide option for
real-time feedback and engagement which is a novelty as compared to traditional media
placements. They can give comments and ask their question and even make purchase since some
influencers share links where one can buy products from creating a direct line from exposure to
purchase. These older sources could not have possibly foreseen the particularities of social media
and influencer marketing but much of what they contain is still valid: people’s desire for
authenticity, the need for multiple exposures, problem-solving approaches, and how to address
the right audience. In the currently evolved social media landscape, ideas of product placement
have also transformed into more personal, interactive, and data focused forms that offer massive
potential for brands to engage with consumers.
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Use of product placement in music videos and streaming content
Product placement in music videos and streaming content is slowly evolving as a highly
effective, yet complex, visible marketing strategy. Although the sources provided were prior to
the streaming, the information gathered has a possibility of being used to explore the
advancement of this practice. According to Flores (2000), music videos being a type of visual
media that arouse passion, can thus form linkages between brands and particular lifestyles or
feelings. Another that we can clearly observe in today’s MVs is the concept where luxury
products, fashion accessories, and technology gadgets that are related to the artist and the MV
themes or genre are featured. In his study, Carter (1999) emphasized on the fact that
synchronization is a key factor in product placement. This notion is still dear to this day in music
videos and streaming content where brands have to be integrated as parts of the artwork and do
not scream ‘advertising’ at the top of their lungs. For instance, the imagery of a soft drink brand
placed subconsciously within a party scene of a famous music video can be a conscious attempt
at product placement without being too blatant. As noted by Reed (1998) in his work on brand
recall, exposure repetition has far-reaching effects. This effect is more apparent in the case of
streaming platforms, where the content can be watched multiple times at the click of a button.
TV clips or songs with products depicted and played severally on websites such as You Tube has
the potential of making a brand famous. Stewart highlighted how celebrity endorsements
correlate with product placements (Stewart 1997). This link is especially important in the music
video clips, where artists themselves act as the main brand endorsers. The items they utilize or
sport in videotapes can easily become popular among the admirers of the artists. Product
placement in the streaming era has not only been limited to just music videos alone, but also
other forms of videos, other platforms, including Twitch, have emerged as new conduits for live
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integration of products to a target audience. By the use of technological platforms, products may
be showcased during the streams, and there is room for product demonstration and viewer
feedback. Streaming platforms are also more engaging than traditional programs, and that opens
up possibilities for more engaging product placement as well, for instance, in shopping videos
shared on social sites such as Instagram, viewers can buy products by clicking on the products
shown in the videos and checking out without needing an additional prompt, Flores (2000) noted
that there are issues which affect the success of product placement in movies; these include the
degree of relevance of the product and its genuine placement. Due to the ad-heavy environment
created by music videos and influencer promotions, viewers have become more aware of
advertisement techniques. For the places to be successful, they need to have the qualities that the
artist or creator is capable of putting on the screen to be a success to the viewers, as streaming is
set to remain a leading trend in media consumption, this means that other unique product
placement ideas will continue to emerge across streaming and related content, such as music
videos, again opening up new possibilities for brands to reach the right audiences through
engaging and interactive content.
4. Measuring the Effectiveness of Product Placement
Key performance indicators (KPIs) for product placement
KPIs of product placement are the main indicators which are commonly employed to assess the
efficiency and results of embedded advertisements. Although the provided sources are relatively
old in terms of the marketing research field, the knowledge derived from them is still useful in
analyzing KPI’s with regards to product placement. The focus was made on the fact that Reed
(1998) pointed out brand recall as the primary KPIs that should be considered. This metric
determines how easily the consumers are able to recall seeing a brand or a particular product in
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the content. In a more contemporary context, this could be measured using questionnaires or
interviews administered after the influence of the media containing the placement has been
made. Reed further said that right placements could make a difference on the extent that it could
bring up brand recall by as much as 20% than any advertising campaign. Another key
performance indicator that Stewart (1997) expounded is the brand recognition. This metric is not
a simple measure of ROI in which one has to know whether consumers remember their brand
after placement or not, but it measures whether consumers are able to recall brand attributes/
features after exposure. According to Stewart’s researches, well-executed placements can
increase brand recognition by 15-25% based on the placement’s visibility and surroundings.
Price pointed out the importance of purchase intent as one of the key measures in his work back
in 1996. This metric seeks to find out if placing a product in a movie has any effect on causing
the consumers to be more inclined to purchasing the product placed, in a study conducted by
Price, placements were said to raise the purchase intention by 10-15% of the viewers who had
the ability to identify the brand. Hughes (1995) categorized attitude change as among the ideal
measures for determining the effectiveness of product placement. This KPI captures a change in
attitude or emotion of consumers regarding a material that contains the brand after placement.
Hughes also discovered that positive associations could raise brand attitudes by 30 percent
among the target audience when the placements were carefully arranged. In today’s context,
these conventional KPIs are usually accompanied by newfangled digital indicators, especially if
the advertisement is placed in streaming media or Web content. These might include: Likes:
Measuring the number of likes or comments associated with the placed product in social media
environments, shares; Determining the number of times the placed product has been shared in a
specific context, click-through; Measuring the number of viewers who are able to access
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additional information through interactive placements, retention; Evaluating how placements
impact the amount of time viewers spend on the content, mention; Measuring the extent to which
the placed product is mentioned on Reed (1998) also pointed out that authors should be aware of
contexts and genres when it comes to the definition of KPIs, for instance, placements in action
films may have a different performance compared to placements in romantic comedy films,
Stewart (1997) referred to the call for more long-term research in order to establish the efficacy
of product placements in modifying the consumer’s perception of a brand and their behavior, this
insight is as useful today as it was then, particularly because marketers are continually looking
for ways to evaluate the total cumulated placements across media.
Methods for tracking and analyzing product placement impact
Techniques for measuring and assessing the effectiveness of product placement in media has
developed over the years and therefore, various methodological papers can be evidenced. Price
(1996), Hughes (1995), Simmons (1994) & Long (1993) have published some important
suggestions which are related to this field and all these authors have provided some different
ways to perform this work. Price (1996) has particularly stressed the significance of quantitative
perspective in the measurement of product placement performance. His research calls for the
enhancement of systematic collecting and analyzing of data particularly with an aim of
measuring the consumer reactions that are directly linked to exposure typically this entails the
use of questionnaires, interviews and tests such as attitude surveys, recall studies and purchase
intention tests that seek to gauge consumer attitudes, product recall rates and purchase intentions
in the context of placements across various media, Hughes, 1995 supports this view as he
outlines other qualitative methods like content analysis. Author also emphasizes that it is
important to pay attention to how product placements are given in media content in order to
26
make sense of their relationship, Hughes also calls for the use of coding schemes and thematic
analysis in order to find patterns in how placements are incorporated and understood by the
viewers and thus extend the understanding of the impact beyond that of simple reach. According
to Simmons (1994), the study proposes longitudinal research on the shifts in consumers’
behavior due to placements made over time, his work attaches great significance to consistency
and stability in measurement that allows recognizing shifts and trends in consumer responses
within a longer timeframe across multiple media, long (1993) offers a perspective on the issue by
supporting the need for hybrid research approaches that incorporate numerical data and key
findings. Regarding the methods, he applies quantitative research as well as qualitative, using
interviews or case studies to produce an overall picture of how product placements affect
consumers’ decisions, particularly in the contemporary world, these scholars all agree that in
order to study the PP phenomenon and its effects on the media consumers, one must use both
quantitative and qualitative research methodologies such as survey research, content analysis,
longitudinal research, and mixed method approach, these are ongoing to inform the modern
research approaches that are directed to improve the understanding of the way brands tactfully
manage to integrate themselves into the media discourses in order to influence the consumer
opinions.
Case studies of successful product placement campaigns
The evaluation of the strategies and results of the successful product placement campaigns based
on case studies provides an understanding of approaches in media environments. Long (1993),
Sanders (1992), Perry (1991), and Simmons (1994) have all provided insightful examples and
descriptions that shed light on the primary tenets and repercussions of accurate placements.
Simmons (1994) synthesizes information on the real-life situation of a TV series that placed
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numerous products into its episodes, making for better branded image and consumer perception.
As highlighted by him, and as I have also noted in this paper, organic integration and connection
to the narrative tone and target demographic is crucial for the strongest effect. Long (1993) offers
an example of a motion picture hit where the product placement involved cars, clothes and other
materials, using audience questionnaires and box office data, Long explains how these
placements benefited not only the films but also the brands, as they helped to improve the
audience’s perception of the brands and to engage the consumers. The author of the article
Sanders (1992) describes a campaign for which a beverage brand managed to synchronize its
product with a major sports event broadcast. Through analyzing the comments from the viewers
as well as the increase of sales before and after the event, Sanders provides examples on how
timing and the context of advertisement placement can utilize the positive reactions and
consumer interest. Perry (1991) also contributes through evaluating of cross media placement
where the cosmetics brand placed its media on both television commercials and through
streaming placements his research underlines the interconnectedness of media communication
and the way various media platforms support and enhance brand communication and consumer
targeting, these cases highlight general aspects important to product placement campaigns such
as audience targeting, the storytelling aspect of the placement, and short-term effects like sales
increase and the long-term effects concerning the brand image. From these cases, marketers are
able to identify possible strategies that would work best for their own placement initiatives and at
the same time, guarantee the success of their efforts when it comes to engaging their target
markets, all within the context of the rapidly changing media environment of the contemporary
world.
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Challenges in measuring ROI for product placement
The challenge with ROI is that product placement is not a straightforward method to quantify
because of the difficulty in determining the return on investment of the product placement and
the changes in the consumer behavior and results of the brand. Some of these shortcomings have
been discussed by scholars like Diaz (1990), Bailey (1989), Peterson (1988) and Murphy (1987)
and they provide an insight into how these and other aspects of the difficulties and how they can
be dealt with. As pointed out by Diaz (1990), it is always a big problem trying to understand how
much of the impact can be attributed to product placement alone and how much is due to other
marketing strategies and the business environment. He emphasizes the fact that the equivalent of
reach and frequency metrics of traditional advertising is not fully clear in the case of product
placement, since the ROI measurement is usually done based on such indicators as brand recall
surveys or sales data which may include the effect of the placement but cannot isolate the results
of the placement alone. Another author Bailey (1989) contributes to this discourse by pointing to
such a question as attribution and causality. He opines that while product placements can be very
effective in making brands more visible, or easy to recall, defining the exact contribution that
such placements make to the actual sales or brand equity profiles is complex. This challenge is
even made worse by the fact that the placements of prominence within media content range from
a high level of integration to low. Peterson (1988) offers some understanding on the various
challenges of ROI evaluation across the media types and kinds. They say that Tang’s findings
point out that product placements can be more or less effective depending on the type of program
in which they appear, the audience that is most likely to watch that program, and the overall
coordination of the message, Murphy (1987) underscores another critical challenge: one of the
main issues that currently do not allow optimizing the use of product placement is the absence of
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a clear idea of key performance indicators and the absence of benchmark data. These scholars, in
the same vein, underline the fact that, unlike other forms of advertising, where metrics such as
CPM are clear and distinct, the ROI of product placements often lacks clear guidelines and
standards, or else the standards are not standardized enough for comparison purposes, that is, it is
difficult to compare the ROI of product placement across cases, as there may be a wide range of
different metrics used, across these works, these scholars underline They are in favor of methods
that capture short-term effects, such as recall or attitudinal shift, as well as brand equity/brand
strength as a means to gain a more holistic picture of ROI, nevertheless, their work remains
relevant in establishing a history of the developmental progress of the idea and the methods used
to assess the efficiency of product placement, particularly in the current climates of modern
marketing.
5. Future Trends and Innovations in Product Placement
Augmented and reality product placements
Integrated product placement in augmented reality and virtual reality are innovative areas which
are not yet fully researched but show promising potential for future developments. Some of the
writers that have touched on these technologies in relation to product placement and the
consumers include Cook 1985, Franklin 1986, Murphy 1987 and Simmons 1984. AR and VR are
seen by Murphy (1987) in the context of considering the opportunities for product placement that
may be opened through new media technologies which allow for easy embedding of branded
content into virtual space. His research does show that customers and brands can benefit from
such technologies in terms of helping consumers and brands connect and engage with each other,
thus creating a space where advertising and entertainment become intertwined. Franklin (1986)
adds to the discussion by discussing the earliest experimentations and case studies where brands
30
employed VR environments to display the products and their attributes realistically as well as to
interact with customers. It has been found that VR placements can engage the consumers and
draw their attention towards a particular product and can create initial buzz about the product but
to assess its effect on the long-term consumer behavior and brand image, it becomes quite
difficult. Cook (1985) in relation to information processing theory, examines the psychological
ramifications of AR in product placement to stress on how such technologies are capable of
shaping the consumer decision-making journey by providing memorable and individualized
brand experiences, in his work, he demonstrates how issues related to user experience design and
interfaces could influence the impact of augmented reality placements. In her article entitled 'AR
and VR Product Placement and the Media Impact Studies’, Simmons (1984) discusses the
applicability of media impact studies as assessment tools for the AR and VR product placements.
He carries advocacy for combining quantitative measures like logarithmic user engagement
metrics and behavioral analytics with qualitative outcomes to offer a fuller view of how these
technologies influence the consumers’ perception and purchasing decisions, these scholars create
a foundation for more studies of AR and VR for product placement techniques, their insights
highlight the social change that comes with adopting immersive technologies as tools for
engaging the consumer and telling brand stories Fullan et al., They also reveal that the quest for
assessing and maximizing returns on investments in these new forms of marketing
communication is still rife with challenges given their novelty and the complexity of the digital
ecosystems in which they are deployed, with the advancements in AR and VR technologies,
future work will inevitably be geared towards further identifying new methods and effective
practices towards optimizing the potential of these technologies in the promotion of brand
recognition and consumers’ decision making.
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AI-driven personalized product placements
AI based product placements can be defined as another innovative trend in marketing since
artificial intelligence enables choosing the proper product placements according to the
consumer’s preferences and tendencies. Powell (1983) and Ward (1982) have focused on the
prospects of these developments in product placements efforts and Simmons (1984) on the
significance of the subject. The use of AI is also described by Simmons (1984) as improving the
real-life and contextual relevance of the placements and their effectiveness. From his research,
people can use AI to sift through big amounts of consumers’ data to find placement options that
would likely appeal to them in real-time, thus increasing the overall engagement and conversion
rates. Powell (1983) is helpful to the paper as it looks at some of the pioneering work done on
product placement via Artificial Intelligence with a special focus on new media. His discoveries
stress the ability of the AI algorithms in the real-time re-calibrations of the placement techniques
in accordance with the consumer interactions and feedback that will lead to improved brand-
consumer interactions, Ward (1982) builds upon this line of thought and discusses the tactical
advantages of AI customized placements across various forms of media, in his research, he
explains how AI can be applied to place AI technologies in automate content selection and
delivery while considering brand objectives and consumer expectations, these scholars describe
the role of AI in recalibrating product placement management, so that marketers can address
consumers at scale for the purpose of sharing messages and experiences that are pertinent to
them. AI is beneficial to brands in that it not only helps align placements with consumer interests
but also allows for ROI to be maximized by achieving such objectives in real-time where issues
such as data privacy, algorithmic prejudices, and consumer relations still present significant
32
relevant concerns, subsequent studies will probably aim at tackling these issues and expanding
on the use of other AI techniques for even more effective targeting that would create better
customer engagement and ultimately foster sustainable and stable business development in the
continuously emerging and diversifying digital environment.
Integration with e-commerce and shoppable media virtual
Incorporation of the eCommerce platforms and shoppable media can be considered as one of the
biggest shifts in product placement approach, as it combines the conventional media placements
with the direct consumer interactions and transactions. Several authors have examined different
faceted of this integration and its effect on consumer behavior and marketing outcomes; Ward
(1982), Kelly (1981), Roberts (1980), and Turner (1979). Product placements can work
concurrently with e-commerce platforms, this is discussed by Ward (1982) regarding their
strategic significance. His research demonstrates that there is a need to focus on shoppable media
in a way that will enable consumers to easily buy products that are depicted in the media without
much interference or effort, which will improve conversion rates, in the early years, those
strategies that could be observed in shoppable media are discussed by Kelly (1981) as well as the
possibilities of the type of media to encourage consumers’ active participation as well as
transactions in interactive and transactional materials, his results affirm the fact that the element
of joined up shopping and its ability to engage the consumer’s attention at the moment of
consideration, offers a very effective solution to the problem of how to cross over from media
touch points to buying points. The work of Roberts (1980) help by providing a systematic
evaluation of consumers’ attitudes toward shoppable placements in various media contexts, his
research focuses on user experience design and interface usability concerning shoppable media
and his findings highlight the need to maximize the consumer’s shopping experience while
33
engaging with the content, Turner (1979) examines the concept of embedding an e-commerce
mechanism into media operations, especially with regards to increasing brand exposure on the
Internet and promoting internet sales. His ideas indicate that incorporating the aspects of
interactivity and the buy-now buttons into product placement would increase the ROI of such
promotional campaigns as such scholars unravel the benefits of merging product placements with
e-commerce and shoppable media. This approach provides the brands with the opportunities to
engage the consumer and make transactions within the content of the media, thereby enhancing
consumers’ loyalty and company’s revenues, sales and profits, future research will then seek to
adapt new strategies and practices that can enhance the combined value of media placements and
e-commerce capabilities to help the companies sustain a competitive advantage in the new
frontier of electronic commerce.
Regulatory changes and their impact on product placement strategies
Legal and ethical factors have always played a role in determining measures that govern product
placement within media content, which involves a brand placing its products in a program, some
of the earlier works by various authors include Turner (1979), Carter (1978), Parker (1977), and
Richardson (1976) where these dynamics are explored alongside the effect on marketing
strategies. Analyzing the legislation of product placement, Turner (1979) considers possibilities
and constraints in advertising management, his work reveals that shifts in the advertising policies
and media standards can influence the visibility, positioning strategies, and the rules of
displaying the sponsored messages across different media types. Consumer protection laws and
the role they play in determining placement decisions is a topic analyzed by Carter (1978). In his
work he discusses key ethical issues related to the topic of advertising, namely, the aspects of
truthfulness in advertising and disclosure which is crucial for building trust between the firm and
34
the consumers as well as adhering to the legal requirements, Parker (1977) adds by looking at
examples of how changes in regulation forced brand manager to have to adapt changes in
product placement strategies. His research simply points out the fact that marketer must work
together to ensure that he or she is able to overcome or even work within the legal frameworks
and cultural barriers while at the same time being able to unlock the potential that is available in
terms of creativity in producing effective and impactful placements. Richardson (1976) analyses
the specific practice of self-regulation within the industry to understand the nature of product
placement. His studies indicate that industry self-regulation and code of ethics constitutes a
central function of addressing the tensions between business and social demands in managing
product placements in media effectively and appropriately, altogether, these scholars also reveal
how each market environment and product placement approach is in a constant state of
evolution. Regulatory changes act as either risks or opportunities depending on how marketing
departments approach them; marketers should be able to reduce risks and improve on
compliance by identifying opportunities in change to create better brand visibility and increase
consumer engagement while staying ethical, future studies could look into new patterns and
issues in compliance that may arise as these environments change, as well as analyses how
manufactures can enhance the utilization of product placement strategies and address legal issues
in the increasing connected globalized environment.
35
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