Executive Summary

EXECUTIVE SUMMARY

The study on “In Film Advertising” has been undertaken as part of a project in lieu of the 5th Semester University exam. It provides an insight into the twin worlds of magic realism – advertising and movies – and seeks to establish a cross-functional link between the two.

The study covers the gamut of product placements across movies, TV, books, etc., their benefits and risks and focuses on the various product placements in movies over the years. It details the process of In Film Advertising and evaluates its ethical aspect product as a commonly used, and increasingly resorted to, means of advertising.

Today advertising plays a very important role in the growth and survival of many businesses in India and all over the world. However growing competition and need for innovation has given rise to a more creative form of advertising- In Film Advertising.

In Film Advertising has been a concept popular in the West for a long time now. However its wide presence in the Indian context is has been relatively new.

The project also seeks to understand product placement in the Indian perspective as this means of IMC (Integrated Marketing Communication) has gained immense popularity in the past decade and is an important source of financing Hindi movies given the much plagued financial condition of Bollywood and also its growing presence in South Indian commercial cinema.

This project also seeks the advantages and disadvantages of In Film Advertising and identifies the impact of the same on the viewer.

1 INTRODUCTION

It’s probably the biggest invasion of our times.

No! We are not referring to the hostile takeover of planet Earth by a race of alien intruders. We are merely referring to the unmistakable presence of advertising in our lives.

With the entry of satellite television into India, we have witnessed a spurt in production and values. Television has never had it so good. With a galaxy of stars descending on it – from Amitabh Bachchan on Kaun Banega Crorepati to Sachin Tendulkar and Aamir Khan endorsing the two colas in the market – TV couldn’t have asked for more! In the last decade or more, competition has spiraled to an extent that forces advertisers to seek new venues to promote their products.

It in the wake of this pressure to try and be innovative, that traditional media like the print media and the electronic media are giving to the entry of advertising into film.

The following pages of this study will illuminate for you that advertising has had a rather protracted presence in films. However, in the past their presence was veiled. Now, their presence is starker than ever before.

Not only are advertisers placing products into celluloid shots, they are also actively producing and distributing films, giving it that spanking new corporate identity. So where does one draw the line between advertising in films and films in advertising? Well, if you were to go by the new Reid and Taylor advertisement, Amitabh Bachchan brings alive the magic of the movies for an apparel.

Advertising adorning a different garb, would you say?

2 HISTORICAL PERSPECTIVE OF ADVERTISING

The history of advertising dates back to civilization itself. Around 1500 B.C shopkeepers in Athens advertised largely in the form of sign boards. With the rise in craft, economy in Europe and Asia advertisements arrived with rapid pace on the business scene. But these advertisements were crude with little or no sense of marketing. As these advertisements aimed, only at dissemination of information, they lacked creativity to attract a specific class of buyers.

Due to appearance of modern market system by the 16th century, buyers and sellers started interacting for exchange of goods on mass scale and this paved the way for advertising becoming a tool of commercial communication. However, in 1712, advertising in England has to suffer due to severe blow from the government by the way of imposing taxes on every published ad. Advertisements then were only track advertisements announcing the arrival of shipment of tea, coffee, cloth etc.

Advertising prospered in the early 19th century when the publisher of a newspaper used to sell advertisement space to procure finance for their survival and growth. The concepts of mass production, mass distribution, standardization of products contributed greatly towards of emergence of consumer markets.

3 World War I witnessed advertising grow as a profession and regarded it as a tool for social engineering. It was supposed to mobilize public opinion in favour of war. Product appeals were emphasized less and greater emphasis was laid on fear, hope emotions, insecurity etc. The advent of radio in 1920 marked remarkable development in the industry.

Post war years witnessed a growth in prosperity of advertising. The growing popularity of Television as an important media of mass communication and re-creation created this situation and provided the much needed momentum to the advertising business. Today advertising is wide spread all across the world with Germany securing the first place followed by USA.

Advertising is now playing a major role in the survival and growth of businesses in India.

The history of advertising can be divided into 3 phases:

∅ Phase I (Prior to 15th Century)

∅ Phase II (From 15th Century to 19th Century)

∅ Phase III (From 20th Century)

PHASE I

4 This period relates to the pre-printing period. Information rather than persuasion was the objective of early advertising. In those days three forms of advertising was used.

A) Trademarks:

The artisans used to inscribe their initial on their wares such as pots, wooden tools etc. The purpose was to give a separate identity to their wares. As a reputation of a particular artisan spread by word of mouth, the buyers began to look for a reputed mark before they made their purchases.

B) Sign:

In those days traders erected commercial signs on prominent rocks along trade lines.

C) Town Carriers :

The town carriers beat a drum or ring a bell to attract the attention of the public before making announcements.

PHASE II

This period characterizes an important milestone in the history of advertising and human civilization. Invention of printing press in 1438 by Johan Gutenburg in Germany totally revolutionized communication methods for the whole world.

5 The three forms of advertising during this period are as follows:

A) Newspapers: The first newspaper ad was in 1525 that appeared in Germany.

B) Magazines: They were first published in early 18th century and they gained recognition as a medium of advertising only after 1870’s.

C) Siquis: Handwritten posters were forerunners of modern outdoor advertising. The word ad was then unknown and then the advertising posters were called “Siquis” meaning “if anyone”.

PHASE III

Two 20th century events added impetus to the growth of advertising, viz. the appearance of Television and the radio on the communication scene. World War-I witnessed the growth of advertising as a profession and regarded it as a tool for social engineering. It was used to mobilize public opinion in favour of the war. Product appeals were emphasized less and greater emphasis was laid on fear, hope, emotions, insecurity etc. The advent of radio in 1920 marked remarkable development in the advertising industry. Post war years witnessed a growth in the prosperity of advertising. The growing prosperity of T.V as an important media of mass communication and recreation created this situation and provided the much needed momentum to the advertising business.

6 TASKS OF ADVERTISING

Adverting has become necessary to push the product in the limelight given the present market situation of mass production, mass distribution, mass consumption, shorter product life cycles and fierce competition. Although advertisements are inserted for a number of purposes, a few important tasks which advertising performs are as follows:

1) Information : Advertising helps in creating awareness among the end users of the products about its availability, utility, and affordability as also rectify their false impressions and enhance company’s image.

2) Persuasion : Given the fierce competition prevailing in the market, advertising helps in building demand, changing peoples preferences as also establishing superiority of one product over the other.

3) Reminder : Advertisements are used to constantly remind consumers about the availability of the products by being repetitive in nature.

4) Reassurance : Repeated advertisements seek to reassure the consumers that they have made the right choice in purchasing the product and that it will live up to their expectations.

5) Support to company’s sales efforts : Advertising seeks to complement the company’s effort in creating awareness about the product by communicating the messages to larger audience including those inaccessible through other means like visits by the sales representatives. DARKER SIDE OF ADVERTISING

7 As every idea or concept has positive as well as negative aspects, so also is the case with advertising. With the brighter side of advertising there also exist certain disadvantages associated with it which is briefly listed below:

Social and Ethical Criticism:

1) Advertising disseminates false, deceptive and misleading information.

2) Stress on insignificant/ negligible differences among products have led to proliferation of brands.

4) Some of the advertisements women models in unacceptable ways, which creates an impression that women are commodities themselves.

6) Advertising leads to a “Demonstration Effect”.

Economic Criticisms:

1) Advertising by increasing business concentration through brand loyalty may encourage monopoly market.

2) The cost involved in advertising is passed on to the customers who have to pay a higher price than the actual cost of the product.

3) Fierce competition among manufacturers has resulted in advertising war. This has resulted in misuse of advertising as well as resorting to unethical practices, which are not in the long term interest of the corporate sector.

IN FILM ADVERTISING

8 PRODUCT PLACEMENT:

Product Placement or In Film Advertising or “Embedded Advertising” is a planned or unplanned exposure of a product within different content vehicles such as films, TV series, books or any other vehicles that do not directly promote the product.

TYPES OF PRODUCT PLACEMENTS:

Product placements occurs at different levels based on the content vehicle and product type –

A) As Part of the Scene: Most commonly used and found in films and TV shows. This can be further segmented into the following based on the level of interaction with the product :

♦ Background Prop: The product / brand are included as part of the set, generally very prominently. For e.g., the Philips billboards and products in ‘Austin Powers: The Spy Who Shagged Me ’

♦ Hands-on Prop: The product is actually used by actors in the scene. For e.g., the prominent use of AOL’s internet services in ‘You’ve Got Mail’ or use of iMac laptops in ‘Felicity ’

♦ Implied promotion:

9 Here the scene may highlight the product or some of the attributes. In a novel released in September 2001 entitled ‘ The Bulgari Connection ’ Fay Weldon writes , “ There ( Bulgari ) , attended to by charming girls , and men too , the real estate mogul Barley Salt pays £ 18,000 to buy his scheming second wife Doris Dubois , a sleek modern piece , a necklace , stripes of white and yellow gold , but encasing three ancient coins , the mount following the irregular contours of the thin worn bronze. ”

The 1998 movie ‘The Truman Show’ spoofed this type of placements through very obvious promotion of products used by Truman and his wife.

B) Ninety Minute Commercials : Movies such as ‘Tomb Raider ’ and ‘ Toy Story ’, where the products are the main story, are the ultimate incarnation of product placement where the entire film showcases the product but never actively ‘sells’ it.

C) Prizes / Giveaways: With the proliferation of game and talk shows and reality TV, prizes and giveaways have become a high profile placement avenue. For e.g.: In the TV show ‘Survivor ‘, the winner wins a shopping spree of $ 500 using a Visa card, which the host names and holds up for the cameras to focus on.

TARGET AUDIENCE

10 The audience that will be reached with a product placement most depends on the specific show or movie. In general, movies and TV placements tend to be seen by younger viewers. Teenagers are three times as likely as adults to be frequent moviegoers.

With movies in particular, methods of determining viewer demographic include its Motion Picture Association / Censor Board rating and the type of movie (action, comedy , sci-fi , romance, etc.). Some examples of viewer demographics for product placements include

∇ Apple was able to reach upper-middle class women aged 18 to 35 in ‘ Sex in the City ’

∇ Philips shaving products will be associated with the suave sophistication of James Bond in the character’s movie ‘Die another Day ’. This appealed to young and middle-aged men.

∇ Nokia was exposed to many young , tech-savvy viewers in ‘ Charlie’s Angels ’

∇ Heineken reached men and women aged 21 to 29 in ‘ Austin Powers : The Spy Who Shagged Me ’

TRENDS IN IN-FILM ADVERTISING

11 ∂ The business of In Film Advertising has evolved from an informal structure to a more professional industry. Whereas initially, placements were made under goodwill contracts, today most placements require legally binding contracts.

∂ In Film Advertising is now recognized as a “strategic” marketing technique and is a regular feature in the marketing mix.

∂ Players involved in In- Film Advertising have become highly vigilant about negative product placements.

Ψ Digital technology has entered the world of In Film Advertising in two levels of integration –

∗ Digital manipulation of an existing product in the movie : In the movie ‘Demolition Man’, the Taco Bell restaurant was digitally altered to Pizza Hut for the international audience.

∗ Digitally place a product into a scene: This method is yet to take off. Futuristic uses could be in featuring a logo on a T -shirt.

In Film Advertising has spread past conventional mediums of movies and TV to video games, books and even textbooks.

TRENDS WITHIN EACH MEDIA

12 The Trends within each media are as below:

A) MOVIES: In Film Advertising back to the silent era when film makers were allegedly paid by Ford Motor Co. to use the Model T and Model A in films. However, the recent revolution began with the placement of Reese’s Pieces in the 1980 movie ‘E.T – The Extra-Terrestrial ’. Hershey’s capitalized on the films worldwide popularity through traditional marketing channels such as tie-in promotions and increased distribution which resulted in a sales increase estimated between 65 % and 85 %, bringing product placements into the spotlight of the marketing community. Today, placed products feature in most big budget films and most Hollywood studios have a department dedicated to placements.

B) TELEVISION: In Film Advertising has been active across all types of television shows. Initially generic products were used, for example, sodas that said “Cola” in the same font and lettering as Coke were common. To bring realism to TV programs, shows have moved to brand name products. As far back as 1951, Phillip Morris paid Lucille Ball and Desi Arnaz $ 30,000 a week to place their products on their show. Today it has become prevalent and is being heavily implemented with the increasing popularity of game, reality and talk shows in the form of prizes and giveaways. Examples include shows such as ‘Khul Ja Sim Sim’ on Star TV India.

Sports telecasts also provide product placement opportunities at the team, event and sportscaster level. However, it is more difficult to get placement on a TV show as TV producers tend to be careful not to alienate companies that buy commercials during their shows.

13 C) VIDEO GAMES: Unplanned product placements, such as cigarette ads in motor racing games, have been featured in video games since the 1980s. Although in 1997, Sony charged a one time fee of $ 20,000 for placement per product, today most video games developers place the product for free. This can be attributed to the enhanced realism of the game through the use of brands and the fact that the monies involved are insignificant. Additionally, this reduces the strain on the development programmers as they are not subject to external accountability.

D) BOOKS In what began as a publicity stunt, a little known writer, Bill Fitzhugh persuaded Seagram to sponsor his satiric novel called ‘ Cross Dressing ’ that happened to involve Scotch , thereby initiating product placements in books. As mentioned earlier, Fay Weldon released her book ‘The Bulgari Connection’ in which she wrote explicitly about Bulgari in exchange for an undisclosed sum. Books are expected to be the next wave of product placements as books offer a more personal relationship with the reader (audience), and are therefore very near and dear to people.

E) TEXT BOOKS Today, product placement is entering the education realm. Many school textbooks now include references to a wide array of brand-name consumer products, from Nike and Gatorade to Disneyland.

14 For e.g, the 1995 edition of the textbook ‘Mathematics: Applications and Connections’ used in schools in 15 states of USA includes the following decimal division problem:

“Will is saving his allowance to buy a pair of Nike shoes that cost $ 68.25. If Will earns $ 3.25 per week, how many weeks will Will need to save? ” To the right of the text is a full-color picture of a pair of Nikes. These placements are claimed to make math problems more relevant to sixth graders. However this form of product placement is raising questions among many parents and educators.

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BENEFITS OF IN FILM ADVERTISING

15 A) EFFECTIVENESS:

In Film Advertising targets consumers with messages in a format to which they are receptive, leading one to believe that it is more effective than traditional mediums. Unfortunately, it is difficult to isolate the effectiveness of these product placements, as it forms a small portion of the marketing program. Usually it is argued that it is a good ROI given the claims by various companies. Ray-Ban for example, claims that the placement of their Predator 2 sunglasses in ‘Men in Black’ nearly tripled sales to almost $ 5 million since the release of the movie. BMW reportedly paid $ 3 million to place its new Z3 Roadster in the 1995 James Bond movie ‘Goldeneye ’. It is believed that this placement resulted in $ 240 million in advance sales alone.

Effectiveness can be measured in terms of:

ζ PRODUCT RECALL - A study of ‘Spiderman’ viewers indicated that around 47 % viewers recalled seeing the Dr. Pepper can in the movie. This figure increased to 67 % when subjects were asked whether they remembered seeing a Dr. Pepper can in the movie. Although this may imply that the placement was effective, determining how this placement will translate to sales is more difficult to assess as most respondents weren’t inclined to purchase the product.

ζ REACH - Reach (no. of people who have seen the movie) can be estimated by dividing the total box office revenues of the movie by the average ticket price, with adjustments for repeat

16 viewers. In Film advertising live on in perpetuity on cable and through video sales and rentals.

The general agreement is that more subtle placements are more effective. Products that are wrapped around the main character are definitely more successful than general placements like a Coke or a Pepsi.

B) CAPTIVE AUDIENCE:

Being an integral part of the scene product placements in movies grab audience’s attention. This provides a solution to the problems of “zapping” channels during advertisements, pay channels and advertising clutter. Movies provide the additional benefit of locking- in the audience as the viewer has already committed through ticket purchases to seeing the movie and therefore has limited multitasking opportunities.

C) IN EXPENSIVE

In terms of both advertising cost as well as Cost per Thousand (CPM), product placement is a small expenditure in the total advertising budget of a firm. Given the long shelf life of movies and TV serials (home video, foreign distribution, pay-cable, and network and syndicated airings, etc.) as well as most other medium used for product placements, it is probably the only form of advertising that has a reducing CPM with increasing exposures.

C) APPEAR EN VOUGE

17 In Film Advertising allows an advertiser to associate its product or brand with a lifestyle. Ericsson capitalized on this benefit through the placement of its cell phones in the James Bond movie ‘Tomorrow never Dies ’. This placement brought them credibility as the phone company that literally drives future technology by linking with 007’s image and association with high tech gadgetry.

F) IMPLIED CELEBRITY ENDORSEMENT In Film Advertising can also lead consumers to link the brand and / or product to the celebrity using it. This is valuable to advertisers on account of the costs and other problems associated with acquiring celebrities for product endorsements.

G) EMPLOYEE MORALE

Employees seeing their product placed in prominent roles and associating with the positive synergies of the placement feel good about their firm and this leads to increased morale.

H) ACCEPTANCE

Studies have revealed that consumers differentiate product placements based on the basis of category and individual differences and in general, viewers hold favorable attitudes towards ethically-neutral product placements as long as they are unobtrusive.

I) REGULATION CIRCUMVENTION Although product placements were instrumental in circumventing regulations in the past, it is now agreed that with increasing consumer

18 awareness of paid product placements of ethically charged products such as guns, cigarettes and alcohol, such placements face enormous backlash and the risk of negative association.

MEN IN BLACK- “RAY BAN PREDATOR 2”

CHARLIE’S ANGELS- “NOKIA”

THE PROCESS

SCRIPT TO SCREEN: THE PROCESS OF IN FILM ADVERTISING

19 “Quiet on the set!”…. “Rolling”…. “Sound”…. "Background” and ... “Action!” Each day these words are spoken on countless movie sets all over the world. Their immediate effect is to set into motion the process of transforming live action at a given location into a celluloid medium which will then allow millions of viewers to be "present" when the action took place. Major theatrical motion picture projects can often take years to complete the various phases of development:

θ PRE- PRODUCTION

θ PRODUCTION

θ POST PRODUCTION

θ DISTRIBUTION

"In Film Advertising” is one area of movie making which can have a significant impact on the production and distribution phases mentioned above

While on the surface Product Placement appears to be a relatively simple endeavor, it can involve many complex issues which should be addressed before the camera rolls. In order to achieve a basic understanding of the Product Placement process, one should be familiar with the various players who might become involved. ϒ THE DIRECTOR This person is responsible for and has basic control over all the creative aspect of the film. Ultimately, every case and crew member reports to the Director in some fashion. Some Directors are very sophisticated in the area of placements and have very definite feelings

20 about them. In the event of a dispute concerning a placement, their decision is final.

ϒ THE PRODUCER Principally the Producer (s) is responsible for the business aspects of the movie making process. They are normally directly involved in the development of the project and oversee the major deals for cast and crew members. Because the Producers will share in the profits (if any) of the released picture, they have a vested interest in reducing the picture's negative cost and/or adding marketing support through Product Placement and related promotional activities.

DIRECTOR OF PHOTOGRAPHY

The Director of Photography (DP) determines the "screen look" of the picture. They decide lighting techniques, camera angles, focus points, and other related issues.

ϒ PRODUCTION DESIGNER The Production Designer is responsible for the basic "look" of the picture from a physical standpoint. That includes set construction, locations, props, set dressing, wardrobe, and in some cases even transportation will take creative guidance from the Production Designer.

SET DESIGNER

The Set Decorator is responsible for all the fixed items on a set. Carpeting, furniture, wall coverings, light fixtures, drapery, plants,

21 pictures, signs, posters, vending machines and other basic items fall under their purview.

ϒ PROPERTY MASTER

The "Prop" Master is responsible for hand props. One way to visualize the difference between a Set Decorator and Prop Master is, if you can pack it up in your hand, the Prop Master is most likely responsible for it. A table on a set is selected by the Set Decorator, while a glass on the table from which the actor drinks falls under the Prop Master's jurisdiction.

ϒ COSTUME DESIGNER The title is self-explanatory. The Costume Designer designs and/or coordinates the wardrobe for the cast.

ϒ WARDROBE SUPERVISOR The Supervisor reports to the Costume Designer, usually having the responsibility for minor cast members and extras or "atmosphere" personnel. However, in the absence of a Costume Designer, the Supervisor will dress the entire cast.

ϒ TRANSPORTATION CO-ORDINATOR The Transportation Coordinator is responsible for all vehicles connected with the product both in front of and behind the camera.

22 ϒ LOCATION MANAGER The Location Manager is responsible for finding locations that look like or could be made to look like those described in the script

Each person among the above who might be involved in a Product Placement situation, are talented professionals who take a great deal of pride in their work. All are in that "quasi-creative" area which allows them to shape the final appearance of the film. Every item on the set is hand picked, and may have been the subject of several creative discussions prior to receiving approval to be photographed. Product Placements thus, very rarely happen by accident.

INVOLVEMENT OF THE STUDIO

A fairly common sequence of events is followed in the interface of a studio and a production company -

THE SCRIPT ANALYSIS 

23 Usually each studio has a Production Resources Department responsible for the administration of Product Placement. As various script properties are developed, it becomes apparent which ones will become "go" projects and move on to the pre-production phase.

The executive reads these scripts with several questions in mind, a few of which are: ჶ Can I reduce the negative cost of this project in a substantial way using Product Placement? ჶ Is this project of the magnitude that would warrant revenue- generating opportunities through placements either cash or barter? ჶ Will the Director, Producer and/or cast members accommodate proper placement situations? ჶ Are there specific scenes that emphasize products such as verbal mentions or action props? ჶ What is the target audience for this picture? ჶ Would this picture be appropriate for joint promotional efforts with Corporate America including merchandising and/or licensing opportunities? ჶ Will legal clearance be necessary for trademark or copyrighted exposures? ჶ Must cast members be advised by contract terms prior to the studio making any placement commitments? THE CREATIVE CONCERNS  Once the analysis is complete, it will be circulated to discuss the creative needs of the Picture. The production personnel referred to above will present their ideas concerning how they view the inter- relationship of specific placement opportunities with the applicable scene, cast member, or story point. This is by far the most critical aspect of In Film Advertising.

24 If the placement opportunity in any way jeopardizes the creative integrity of the film, it will be dismissed as a possibility at this time. What needs to be kept in mind is that all of these individuals are in the business of making motion pictures; Product Placement is an ancillary issue.

From a practical standpoint, at this stage one wants to know if a placement is feasible or not. No one should be spending needless energy sending product, drafting contracts, or securing clearances if there is no reasonable possibility of the placement (i.e. product) appearing in the picture.

THE WISH LIST  The discussion with the production team usually will give birth to the "wish list." This is a list of those specific products -- vehicles, locations, airlines, etc. that are defined by brand name. These requests will be given top priority because they usually relate to the creative aspect of the film. The crew may suggest a creative use of your product.

Movies are an area where magic is made. Pepsi cans can dance, elephants can wear Osh Kosh overalls, and products can appear two hundred years in the future. In some cases, categories without brands are requested (i.e., domestic beer, sport shoe, modern kitchen appliances). In this case, the placement executive has flexibility. If the "wish list' contains "must have" items, (the Director requests a 1952 Coke machine or a British Airways terminal) the issue may become one of legal clearance rather than Product Placement. As a

25 general rule, the products or categories contained in a wish list will receive the more prominent exposure.

REDUCING NEGATIVE COST  Historically, Product Placement was created as a means of reducing the negative cost (actual costs of film production) and is still used for that purpose today. There are other benefits involved such as injecting a sense of realism into a scene by using commonly known items.

FISCAL CONCERNS  A Product Placement agreement which includes $5,000 worth of free goods may seem insignificant when compared to a total negative cost of a feature film in the $ 25-30 million dollar range. One can better understand the motivating factors of this type of agreement by examining the financial structure of a motion picture. The three main divisions are:

⌂ ABOVE THE LINE

This will include costs associated with the story rights, Producers, Director and cast members.

⌂ BELOW THE LINE

All non-talent expenses connected with the shooting unit. This includes the crew, their equipment and related costs.

26 ⌂ POST PRODUCTION

While also considered "below the line," this area is normally segregated from the shooting unit costs and includes such things as editing, music, titles, film processing costs and optical work.

Product Placement will almost exclusively impact the shooting unit costs. Within this area, there are many areas that are subdivided even further.

For example, a Prop Master may have a budget allocation of $50,000 for prop purchases and perhaps $40,000 for prop rentals. The prospect of reducing hard dollar expenditures by 10% or 20% through effective use of Product Placements becomes extremely attractive.

In theory, this holds for other budget categories as well (set dressing, wardrobe, transportation, etc.). Because each department head is charged with the responsibility of their respective budget allocation, the motivation is the same. They are judged by their ability to get the maximum amount of "production value" on the screen, while staying within the fiscal constraints dictated by the budget category.

REVENUE GENERATING PLACEMENTS 

Some of the major issues associated with the worth of a Product Placement -

27 ჶ Should the price be fixed before or after the picture is released? ჶ Should the placement fee be indexed against gross box office receipts? ჶ Should it be based upon consumer product recall statistics using theater exit polls?

Certainly the cast, Director and distributor of the film will help to determine the initial value. One must also consider how the product is being used.

Is it simply in the background?  Is it an action prop which will be handled?  Will it be referred to in the dialogue?  Is it a story point necessary to get a message to the audience?  Is it likely that this picture will be commercial success?  Is this picture aimed at the desired target audience for this  product?

All of these factors should be considered when evaluating a placement situation. A revenue-generating placement will be attractive to a Producer, but the Director may have creative reasons to choose a less lucrative placement. Barter agreements are also an alternative worth considering. For e.g., an airline may agree to allocate a given amount of round trip tickets for the production's use in exchange for on-screen exposure. Similarly, an auto maker may let you crash several vehicles in exchange for using their model in a principal part of the picture.

FROM PLACEMENT TO PROMOTION 

28 It is worth noting that during the product selection process, the possibility of promotional activity is very alluring to the profit participants.

Ideally an advertiser whose product is intended for placement will also help promote the film, although such promotion should not be contingent upon placement.

"Back-end" promotions, as they are called because they support the film's release or "back-end," should have a strong tie-in theme that can stand on its own. Advertisers that offer this incremental media may be given preference when products are selected for placement.

29 THE ACTUAL PLACEMENT

Once the above issues have been considered and all parties involved to proceed with the placement have reached a decision, it is critical that the product reach the appropriate member of the shooting company on a timely basis.

Some motion picture projects cost in excess of $150,000 per day. Although there is a prearranged shooting schedule, it rarely remains

30 intact during the shoot. Sick actors, unpredictable weather and cut or added scenes can affect the schedule. Because the exact moment that a product might be needed is unknown, it is wise to have it on hand as early as possible to accommodate changes.

Nothing is more aggravating to a Prop Master than waiting days or weeks for product which has been promised. Additional time should be added for products shipped out of the country so that they can clear customs in a timely fashion.

One also needs to be aware of how the product actually will be used. If it is an alcoholic beverage, no one wants minors consuming it on- screen or someone driving after consumption. A general understanding of the product application is necessary.

Scripted pages can change, dialogue can change, and the look for the set can change in a short amount of time. This will not be a problem to the placement if the basic intent or understanding of the application has been met.

One also needs to predetermine if the goods are to be returned after the shoot or if the production company may retain them. A general rule is that if the goods are deemed "expendable" (i.e. soda, shoes, sun glasses, etc.) they are not returned.

They may also be kept in the case of a barter deal. If the goods are deemed "recoverable assets" (i.e. vehicles, furniture, wardrobe, computers, etc.), they are returned.

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31 THE CHECKLIST

The following aspects need to be given good thought to when dealing in the world of In Film Advertising:

ђ Know with whom you are dealing, be it a Prop Master, Producer, Costumer, Product Placement Company or Studio Executive. Do your homework. Call other studios or the social organizations dealing with product placements and learn what this person or company's reputation is in the industry.

32 ђ Determine what the placement situation involves from a financial standpoint and whether the goods will be returned.

ђ Determine the product's intended use in the film and what degree of exposure is anticipated.

ђ If fees are to be paid, they should be conditioned upon minimum product exposure requirements in a print which is released nationally.

ђ Reduce the above issues to writing.

RISKS IN IN-FILM ADVERTISING

☯ FREE PLACEMENT : Advertisers have little or no control over the context and use of their products. Such placements are not always guaranteed as it may be edited out by the user.

☯ GENERIC USAGE :

33 If a product or service is used in the same way that it is used by the general public, the filmmaker can use the product without the company’s permission. For e.g., ‘ Erin Brockovich ’ was allowed to feature an unflattering portrayal of corporate wrongdoing by Pacific Gas and Electric Co. since the film’s plot centered around actual events involving the company. This lack of power results in greater risk for the advertiser compared to traditional forms of promotion and advertising.

☯ DANGER OF NEGATIVE PLACEMENTS : Advertisers do not want their products to be used in a negative way for fear of consumers relating the products with negative emotions. To counter the negative placement problem, Mercedes declined the use of their car in the Academy award winning film ‘Traffic’ because it would have been used by drug dealers. The company has a strict policy – no scenes with cut-up bodies in the trunk, no safety devices disconnected, in short, nothing that makes the car appear in a bad light.

☯ NEGATIVE PLACEMENTS BY COMPETITIORS: Emergence of such placements is similar to political mud-slinging. For e.g., one can imagine Nokia paying to have a scene added where the actor is purchasing a phone and chooses a Nokia over a Motorola after having discussed with friends the problems they faced with the Motorola phone. On the downside, such phenomenon opens the door to retaliation and the possibility of damaging both companies’ brands in the end.

☯ CROSS-CULTURAL DIFFERENCES :

34 Since movies and TV serials are distributed worldwide, advertisers need to be careful as their products may be perceived differently or not recognized by consumers in another country. For e.g., Diet Coke is called Coke Light in Japan due to the negative connotations associated with the word ‘Diet ’. So a placement of Diet Coke in a Hollywood production may be ineffective or even harmful if aired in Japan. Another issue that may be relevant in the international context is the product’s stage in its life cycle. Products in the early stages of their life cycle may require separate placement strategies.

☯ VIEWERS: Product placements could alienate viewers if they are overdone. The danger is especially in the case of a movie saturated with placements that are perceived by consumers to be intrusive or excessive. Annoyance caused by saturation may also lead to consumers relating negative emotions with some products.

MINORITY REPORT -The Advertainment

※ EXTENSIVE PRODUCT PLACEMENT PORTFOLIO

Steven Spielberg's Minority Report is probably the latest and greatest in Hollywood ADVERTAINMENT. Aside from star Tom Cruise, a hefty portion of the screen time is devoted to advertisements, with more than 15 major brands, ranging from the Gap and American

35 Express to Lexus, Nokia, Pepsi and Reebok, interlaced throughout the sci-fi noir flick.

Co-producers and distributors 20th Century Fox and DreamWorks have not only solicited product placements as a key part of Spielberg's futuristic vision (Spielberg convened a conference of futurists before filming to help him paint a realistic portrait of the 52 years hence), but the studios also see their marriage with the brands as a way to rein in production costs, since companies pay good money to have their wares on the big screen. Ad placement by major brands knocked off roughly $25 million from Minority's $102 million budget.

A good number of the companies--such as Burger King, Century 21, Guinness, Fox, Aquafina, Revo, USA Today and even Ben & Jerry's -- have video billboards of their logos prominently featured in the movie. Some brands cleverly blend into the background while others actually play an intrinsic part of the plot.

One scene in the film takes place in a futuristic Gap store, while another has some of the billboards giving a personalized pitch to characters as they walk by. For example, as Cruise's character tries evading the cops, he's identified by a billboard which calls out to him saying, "John Anderton, you look like you could use a Guinness!"

The movie is filled with fictional commercials and the onslaught is presented as intrusive; each has been geared to speak directly to the individual consumer about, paradoxically, escape. The movie turns product placement into omnipresent white noise.

36 Toyota pinned up $5 million to secure a prime spot for a futuristic Lexus the company designed itself, dubbed the Mag-Lev, which Cruise uses in the movie to climb the sides of buildings. Phone maker Nokia spent $2 million to design nifty sci-fi headsets through which most of the characters use to communicate.

HIGH TECH GADGETS IN IN-FILM ADVERTISING

When Ben Affleck disrupts a terrorist bomb plot as a young incarnation of CIA agent Jack Ryan in the summer flick "Sum of All Fears," employees at RSA Security in San Mateo won't be watching for explosions or chase scenes. Instead, they'll be waiting for the shot in which Affleck wears their product, a key-size identification device,

37 on a cord around his neck. They're hoping that scene won't end up on the cutting room floor.

Once, high-tech devices in movies and on television were laughably unrealistic -- picture the shoe phone on "Get Smart." But now that high-tech firms are getting hip to product placement, more and more real-life gadgets -- many of them not well known -- are getting cameos in films, making onscreen technology look more realistic than ever.

RSA, whose security technology has already played a role in the John Travolta hacker thriller "Swordfish" and "Antitrust" starring Ryan Phillippe, isn't the only one in on the act.

Vancouver's Sierra Wireless has a laptop modem that appeared in "Swordfish" as well as the 1995 movie "The Net."

Nexian, based in La Jolla, has an add- on device for personal digital assistants called HandyGPS that has been used on the popular Fox TV show "24."

Purveyors of well-known consumer products, from Gordon's Dry Gin ("The African Queen," 1951) to Reese's Pieces ("ET," 1982); have long used placements in movies and TV as a means of advertising. It makes sense: Humphrey Bogart drinks Gordon's, so why shouldn't you?

But firms selling new technology often don't have such recognized brand names, or, like RSA, don't even sell their goods to the public. They see product placement simply as a way to introduce their brand to the world or to tell people that a new technology exists.

38

This is because path-breaking technology has yet to hit the mainstream and any exposure tech firms and their products get makes the 'I didn't know you could do that’ statement. In fact, technological improvements -- which have translated into smaller devices -- have made a firm's brand name less and less evident on film. In "The Net," the bad guy hunting down Sandra Bullock's character used a small modem with a flashing light that attached to his laptop. But in "Swordfish," all viewers saw of Sierra's (Tech firm) product was a small antenna protruding from a laptop -- with no brand name visible.

Tech firms do the placements simply to spread the word that such technologically superior devices exist and work. For e.g. ., Sierra’s objective with their wireless laptop modem was to inform people that wireless Internet access from laptops works.

The need for tech product placements in movies also stems from the fact that there is a general technology phobia and putting tech products (gadgets) in a movie and showing people how they're used might be valuable.

The biggest force pushing high-tech firms into product placement now is economics. The high-tech industries are suddenly finding themselves without the resources they once had, because their stock has gone down, so they're looking for other ways to gain image and market their products. Product placement is a very attractively priced way to do exactly this.

Some firms like RSA don't get into product placement under financial duress -- although its share price has fallen recently due to several

39 quarters of disappointing earnings. The firm was doing well when it started doing placements 2 1/2 years ago. But such firms get their movie roles for small fees or for no fee at all. Major consumer brands can pay millions for prime screen real estate, but tech firms pay mostly in free products and technical consulting.

Tech firms also offer cross promotion in lieu of payment. RSA devised an encryption breaking contest that ran on the "Swordfish" Web site, and arranged screenings for employees and corporate customers. In "Swordfish," John Travolta plays a spy who persuades a hacker played by Hugh Jackman to steal millions of dollars through government computers. But RSA's security is not breached in the film -- the logo appears on a computer screen reading "ACCESS DENIED."

It's very important to firms like RSA that its software doesn't play the role of a defeated security system. In fact, RSA turned down a role in "The Farm," a movie about CIA recruiting scheduled for release this fall, for just that reason.

"The script changed and it was going to look as if RSA were being breached, so the firm rejected the offer."

Other firms like Sierra Wireless don't have much influence over how their products are used. No one seems to complain, though, when technology is shown performing far beyond its real capabilities.

For e.g., the scene in "Independence Day" where Jeff Goldblum uses an ordinary Apple PowerBook to upload a virus to an alien spaceship, thereby saving the planet ? Apple declined to comment on whether the scene exaggerated the PowerBook's prowess.

40 “SWORDFISH” - RSA SECURITY TECHNOLOGY

IN FILM ADVERTISING IN INDIA

Leading business houses have come up with the perfect hook to boost sales, by promoting their branded products through films in a strategy called in-film advertising. As a result, brands like Coke, Pepsi, Provogue, and cycles, bikes and others companies have decided to go in for deals with leading Bollywood directors under which the film would promote a particular product.

41 Corporates are increasingly warming up to the idea of in-film advertising and sponsorship deals, be it Ram Gopal Varma's Road or forthcoming releases like Deewangee or Khushi.

In-film advertising and sponsorships are expected to be a major revenue source for producers in the coming years. At present, corporate sponsorships and merchandising is a fledgling revenue stream for Bollywood flicks -- a small patch compared to that in Hollywood.

In-film advertising used to mean a couple of product billboards placed behind the hero's car. Till Taal came along. That's the film that put Coke — and in film advertising — firmly in the plot.

In-film advertising has only gathered more fans since. It's not just the colas, brands like Hero Honda, Bru, and Fair & Lovely have got into the act.

It has become a well-thought out and legitimate part of a brand's marketing plan, and as the film industry gets more corporatised, it's likely to get more popular.

Actively scouting for the opportunities to be visible on Bollywood flicks are several leading brands including Coke, Pepsi, Intel, Hindustan Lever, Phillips, National Panasonic, Sansui, Hero Honda, Hyundai, Airtel, Atlas, Action, Tata Tea and Kitply.

Big banner producers of the likes of Yash Chopra, Rakesh Roshan, David Dhawan and R K Films are increasingly eyeing this fledgling revenue stream. Subhash Ghai, for instance, has raked in record corporate sponsorship deals for Yaadein, worth around Rs 3.35 crore.

42 This covers nearly 20 per cent of production cost of the film, pegged at around Rs 17 crore, so far the highest amount raked in by any Bollywood movie. Ghai's earlier venture Taal had earned around Rs 2 crore worth of corporate sponsorships.

Even conservative film makers of the likes of Barjatiyas of Rajashri Films, makers of blockbusters such as Hum Aapke Hain Kaun and Maine Pyar Kiya -- who earlier shunned the idea of cutting deals with corporates -- are now scouting for prospective sponsors for their latest offering, Main Prem Ki Deewani Hoon.

The industry, however, is no stranger to product placements, in which actors are seen using a particular brand of car, clothes or even eatables in a film , though the source wasn’t consciously used for aiding the financing of the film. Product placements then, were a means of ensuring realistic portrayals to match the film’s genre. Prominent product placement in Indian cinema includes:

Ψ Greeting cards company Archies in the film ‘Maine Pyar Kiya’ (1989) - One of the first experiments in film tie-ups in India (between Rajshri Productions and Archies) met with a lukewarm response.

Ψ Taal proclaimed Coca Cola as its protagonists most preferred choice of drink

Ψ Swatch used the Shah Rukh Khan – Juhi Chawla starrer Phir Bhi Dil Hai Hindustani to enter the Indian market in January 2000. It plans to use the same medium to promote its product in a cost effective manner.

43 As part of its global practice, Swatch plans to distribute about 50-60 top end models to some of the big directors / banners of Bollywood who can then either use the watches as product placements in their movies or just circulate them among the stars. Hyundai offered it’s just launched mid-segment car, Accent, in the same movie.

Ψ In Subhash Ghai's Yaadein, Hrithik Roshan shares a mouth- freshener Pass Pass with Kareena Kapoor -- who is often seen riding a Hero cycle -- with Coke in the backdrop.

Ψ Raju Chacha went ahead with Thums Up ….however , the deal didn’t add to the thunder

Ψ Mc Dowell's went online on the Devdas website

Ψ Kaante had one right out of the film, bombastic soundtrack et al. It spoke about 'Telling the boys from the men', with the action film's big guns Amitabh Bachchan, Sanjay Dutt, Sunil Shetty, Lucky Ali, Mahesh Manjrekar and Kumar Gaurav doing the tough act with Thums Up bottles in hands. Ψ Kaizad Gustad's Boom, featured 400 carats of real diamonds in its opening scene, courtesy Diamond Trading Company

Ψ Nitin Manmohan's Deewangee starring Akshaye Khanna, Urmila Matondkar and Ajay Devgan featured beauty product Fem as an in- film placement.

Ψ Pepsi and Provogue had struck a deal with Boney Kapoor for his flick Khushi starring Fardeen Khan and Kareena Kapoor in lead roles. Fardeen Khan is the brand ambassador for Provogue and Kareena

44 endorses Pepsi. While the deal with Provogue is rumored to be around 75 lakhs, Pepsi has committed more than 2 crores for the same.

However, domestic and international theatrical releases continue to be the biggest revenue stream for Bollywood flicks, accounting for around 60 per cent of the revenue. The remaining accrues from satellite and music rights.

Way back in 70's and 80's, questions concerning ethics kept most producers away from use of in-film advertising. But the 90's saw in- film advertising being blend into storylines and many producers now suitably weave such placements into the storylines. However, the big production banners are the ones attracting the best deals.

Innovative advertisement placements are order of the day. Some, such as Tata Tea, recently came out with a 60-second commercial just before a movie started. Scrolling advertisements are slated to be next in line, feel some ad industry professionals. And buoyed by the response of product placements in Bollywood, some advertising agencies are out to test the water –

Ψ Percept has set up an in-film product placement cell looking specifically at such opportunities.

Ψ IMG-TWI, the global sports management company is seriously eyeing the entertainment business, particularly the Hindi feature film segment. The company is planning to get into the business of managing film stars and is also currently in talks with three film producers to clinch deals for product placement in movies. IMG was instrumental for a product placement deal in Rahul Bose’s “Everybody Says I am Fine” involving 3 well-known brands.

45 According to P K Gupta, general manager, Rajashri Films, in-film advertising and sponsorships are expected to be a major revenue source for producers in the coming years.

At present, corporate sponsorships and merchandising is a fledgling revenue stream for Bollywood flicks -- a small patch compared to that in Hollywood.

For instance, Hollywood blockbuster "Jurassic Park" grossed around $250 million through corporate sponsorship deals. According to the industry estimates, some big banner Bollywood movies have in recent years managed to garner in-film advertising in the range of Rs 50 lakh and Rs 1 crore.

Buoyed by the response, some advertising agencies are out to test the water. Percept, for instance, has set up an in-film product placement cell looking specifically at such opportunities.

According to Percept, "Both corporates and producers are opening up to the idea of in-film advertisements.

Many producers suitably weave such placements into the storylines." For instance, Hyundai offered it’s just launched mid-segment car, Accent, to Shah Rukh Khan and Juhi Chawla for their home production, Phir Bhi Dil Hai Hindustani.

AKSHAYE KHANNA AND AISHWARYA RAI IN TAAL

46

“RAJDOOT BIKE”- BOBBY, 1973

BRANDS WITH BOLLYWOOD

Brands are increasingly being associated with films and have aligned well with popular cinema. And companies are seeing big business in being associated with films. They feel that their brands connect on a more emotional level with the audience if placed in a film.

47 This process has been so far so good. But it is worth exploring why more and more companies are making a beeline to advertise in films and what makes films so attractive to companies.

Who can forget the Subhash Ghai-produced and -directed blockbuster Taal, which had this very romantic scene featuring Aishwarya Rai and Akshaye Khanna sharing a bottle of Coke? The scene became more romantic for Ghai because Coke India dished out Rs 1 crore for placing the product in the film.

Sources say Ghai approached the two cola giants operating in India. Pepsi India declined probably because it felt the asking rate of Rs 1 crore was too high. Hence Coke was the only right choice.

Advertising in films is becoming big business for film producers, advertisers and ad agencies, and the trend is being witnessed all over the world. American beer company Stroh's is said to have paid Rs 15 lakh to the producers of Dilwale Dulhania Le Jayenge for a 15-second scene in which Shah Rukh Khan mentions the brand name while downing a canned Stroh's.

The BSA SLR bike featured as a hero of sorts in the film Jo Jeeta Wohi Sikandar and TI Cycles is said to have paid producer Nasir Hussain some lakhs of rupees. The first such in film placement was the black-and-yellow Rajdoot bike in Raj Kapoor's film Bobby, released in 1973 though it is not known if Raj Kapoor charged anything from Enfield for the scene.

Sooraj Bharjatya's film Hum Saath Saath Hain was associated with Coca-Cola. Throughout the film's promos the theme was 'Coke

48 Presents Hum Saath Saath Hain.' Bharjatya is said to have received Rs 1.5 crore for associating his film with the brand.

This year the number of brands associated with films has hit an all- time high. For instance, the recently released Shah Rukh Khan, Rani Mukherjee starrer Chalte Chalte, has the hero driving a Hyundai Santro and using Castrol engine oil in his vehicle.

Kaizad Gustad's Boom released recently, features 400 carats of real diamonds in its opening scene, courtesy Diamond Trading Company. The Rohan Sippy-directed Aishwarya Rai-Abhishek Bachchan film Kuch Na Kaho is said to have Coca-Cola and Perfetti Van Melle's confectionery brand, Mentos, as in-film placements.

Coca-Cola has been associated itself with Hollywood for at least 25 years, and the company has offices near major Hollywood studios for the purpose. Coke is using much the technique in India. Apart from Hum Saath Saath Hain and Taal, Coke's sub-brand Thums Up was associated with the Sanjay Gupta-produced Kaante.

Sources at Coca-Cola India say the company will increasingly be associated with 'Indian passions' like cricket and Hindi films. The company's involvement ranges from in-movie advertising, theatre tie- ups and premieres to national launches, special shows and consumer promotions.

According to Coca-Cola, In-film is a great way to connect with the consumer in their environment. For liquor companies faced with dwindling avenues to advertise their products such placements are being looked upon with a positive glee.

49 This year McDowell's second-largest brand McDowell No 1 was associated with Raveena Tandon's home production Stumped and thus it was 'McDowell Presents Stumped,' all the way. McDowell's brand Bagpiper was associated with the Vivek Oberoi starrer Dum while McDowell's strong beer Zingaro was associated with the Pooja Bhatt-produced film Jism.

Liquor companies are allocating big proportions of their advertising budgets towards films. Officials in UB say the proportion of their ad budget going towards films can go up by 25 per cent if there are some good projects. A host of liquor companies are headed in the direction of films. Officials in the advertising industry say Shaw Wallace and Radico Khaitan have also started actively scouting for in-film placements.

As mentioned earlier, in Hollywood films such ad placements have been around for quite some time. From liquor to cigarettes and menswear to cars, James Bonds films have them all. When Smirnoff ended its association with Bond's film “Die Another Day”, rival Finlandia promptly filled the gap. And how can one forget Bond's favorite cars, which ranged from the BMW to the Jaguar, with due credits being given to the car manufacturer in each Bond film. RayBan associated itself with Men in Black while the film You’ve got Mail featuring Tom Hanks and Meg Ryan had as its real star of America Online (AOL). AOL reportedly received between $3 million and $6 million with added visibility for AOL's signature smiley-face logo.

“ASMI”- JOGGERS PARK CONTEST

50 CLEAN FINANCE

BR Chopra's film Baghban starring Amitabh Bachchan and Hema Malini among others, scheduled for release later this year, has tied up with three brands — Ford Ikon, ICICI Bank and Tata Tea — which will figure in his film.

51 Ravi Chopra, the director of Baghban, admitted that the total benefit to the producers from associating with the brands is in the range of Rs 3-4 crore.

Says Chopra: "This kind of advertising helps producers recover some of the costs of the film. In any case in our films we need to show film characters driving cars, using mobiles, drinking tea or coffee and using a number of other products, so why not benefit out of it. The sponsoring company also benefits as their brands get associated with film stars."

He feels the growth is tremendous in this kind of advertising as "two to five years ago the amount paid for such ad placements was in the range of a few lakhs while the sums being talked about now run into a few crores."

Such ad placements, he says, could become a source of part-financing for films as big budget films are likely to attract more advertisers and producers would also charge proportionately higher charges for placements. He is however categorical that such in-film ad placement need to be carried out with finesse and could work against a film also if done shoddily.

There is unanimity among advertisers and producers that advertising of this kind needs to be as unobtrusive as possible.

Sanjay Bhutiani, who heads Leo Burnett Entertainment, says one bad placement can undo the work of 10 good ones. For the cash-strapped film industry, getting some amount of clean financing from the corporate sector is a whole lot better than dealing with dubious underworld dons. Films gained industry status two years ago and

52 there was much hope that banks and financial institutions would enter into film financing in a big way.

This hasn't really happened. Financial institutions and banks tend to lay huge conditions in front of film producers before sanctioning finance. With film making a hugely risky business and producer unable to furnish the kind of guarantees required, bank and corporate finance has been hard to get.

Companies wanting to connect better with their audiences and faced with huge rates charged by leading print publications and television channels feel that there is tremendous advantage to be gained by associating with film stars and even more so if the stars happen to be ambassadors of their brands.

Officials at PepsiCo, which recently associated with the Shah Rukh Khan-produced Chalte Chalte, say: "Our presence in the film is because Khan is our brand ambassador and we have an ongoing association with him. Chalte Chalte was Khan's home production. Therefore, Pepsi had a presence in the film." Similarly, the Hyundai Santro was a prominent fixture in the film and it is not a mere coincidence that Khan is the brand ambassador for the car.

The entertainment industry in India is getting increasingly corporatized and somewhere along the way certain brands are becoming associated with the film personalities. Cola drink brands like Coke and Pepsi, and miscellaneous bathing soaps have from the outset been associated with film stars. More and models are turning to acting, and it looks like film advertising is in the natural progression of things.

53 “KAANTE”- THUMS UP

“LEO ENTERTAINMENT” IN IN-FILM ADVERTISING

The phenomenon of in-film advertising is helping to build brands and proving to be a revenue-spinner for several ad agencies. Film placements are currently raking in anything between Rs 5, 00,000 to Rs 50 million for the producers.

54 Leo Entertainment bagged new films such as Pooja Bhatt's Jism, BR Chopra's Baghban, and new films of producers such as Shahrukh Khan, Ramgopal Varma, NR Paschisia and Ramesh Sippy. Leo Entertainment is already an independent profit-centre due to the revenues obtained from films such as Kaante, Raju Chacha and Yeh Kya Ho Raha Hai where it leveraged brands such as Coke, Thums Up, Maaza, Provogue, Castrol, Tata Tea and Blowplast.

For the movie Jism, Leo Entertainment developed an innovative association with Zingaro, a liquor brand. In fact, Leo brokered a “Thums Up Taste the Thunder” deal for the film Kaante and won an award for being one of the Top 10 product placements of 2002. There is an ardent need for producers to involve a marketing and communication consultant such as Leo Entertainment simply because they are the 'creative suits' who can marry showbiz with statistics. With a backing of Rs 100-crore that the Leo Burnett brands command, they can leverage various opportunities for enhancing the visibility of brands. Sanjay Bhutiani through his own initiative, evolved a business model on film marketing during the process of handling the promotions of the first feature film handled by the agency - Raju Chacha.

Since February 2002, Leo Entertainment has been providing an entire gamut of services such as marketing strategies; in-film placements; creative campaign; outdoor, print, online advertising; ground promotions and contests. This is what Leo Burnett has to say about the new trend of In Film Advertising in India:

A) In the US, the entertainment pie is US$480 billion and this mammoth spending has resulted in the mushrooming of megaplexes

55 and gigaplexes. The consumers spend an entire day in these complexes which include theatres, casinos, screens, hotels, restaurants, bars and night clubs. The entertainment industry in India is estimated at Rs 75 billion and slated to increase to Rs 250 billion by 2005.

B) The new trends in Bollywood include corporatisation; multinational studios localizing their content; enhanced production values due to higher production costs; Bollywood films making an impact on the international arena; increased investments in promotions and marketing entertainment properties; and more brands jumping onto the entertainment bandwagon.

C) At present, companies are willing to pay amounts ranging between Rs 50 lakh and Rs 5 crore for placing their brands in films, but it depends on the budget of the film. Big-budget films with big stars can expect more. The size of this advertising is expected to grow nearly 100 per cent in the next two to five years as more and more companies get attracted to this kind of advertising.

D) Advertisers are able to get big stars at a fraction of the costs they would normally shell out for an exclusive tie-up. Films are not subject to surfing, zipping or muting (unlike in TV and other media). Films appeal to emotions and scenes in films catch people off-guard unlike an advertisement, which catches the audience in a cold-evaluating mood. Films transcend geography, class and cultural barriers and catch people in a receptive mood. And films are target-specific.

E) A film-viewer has a short attention span. The best way to deliver the message is to catch the viewer off-guard when his rational defence

56 is down. Appealing to viewers' emotions is better than appealing to their rational thought. The rational gate examines the advantages, benefits and features, and seeks value for money; the emotional gate is all about trust, love, identification and belief. Films operate at the emotional level. Placing a product in a film is catching the viewer at an emotional level when he can connect with the brand.

F) There can be synergies between brands and films. The successful integration of product placement within the film's storyline has a long history — the first example being the yellow “Rajdhoot” bike used in Raj Kapoor's Bobby. Hollywood also leveraged brands such as BMW (Bond movies), Jaguar, Ford, Ray Ban (Tom Cruise in Risky Business and Mission Impossible), Starbucks coffee, AOL and AT &T.

G) Song-and-dance sequences invariably feature an ad in the background but most people don't recall such scenes in detail. What is the advantage of the advertisement then? It is true that ads have to be carefully placed in a film and one bad placement can do more damage than 10 good placements. Artistic integrity is crucial for successful brand placements and the operation has to be woven into the script. Sometimes, unreasonable clients demand more footage although research has shown that a two-minute clip can effectively deliver a message in a credible manner. The placement should be woven into the fabric of the film and shouldn't be contrived and unnatural.

H) In the recently placed ad for Castrol engine oil in film Chalte Chalte, the makers of the engine have reported tangibly increased sales of the oil after the film's release. The product seems to have connected on an emotional level with truck fleet drivers and owners. Ray Ban also benefited by its association with film Men in Black.

57 I) The factors taken into consideration during the negotiation stage include cast and credits, size of the projects and the producers, timing of the release, brand impact, number of screens during release and post-release phase; and possibilities of brand associations through contests and promotions. Depending on the content of the film and its storyline, the agency can sketch a profile of viewers who would see the movie. Then the agency approaches all those brands that could appeal to the targeted viewers. This is followed by a 360-degree marketing plan for cross-promotions during the various stages of a film's release.

J) Objections if at all could come up due to conflicts regarding a certain star's status as a brand ambassador. For instance Shah Rukh Khan could technically object to being associated with CocaCola as he is Pepsi's brand ambassador. But Kaante was associated with Thums Up and Amitabh Bachchan is the brand ambassador of Pepsi but there was no conflict as Thums up was associated with the entire film and not one actor.

CASE FILE- “ JISM”

ZINGARO, the leading strong beer brand from the UB Group Co, Millennium Alcobev, was associate with the woman oriented film — Jism, in a bid to reach out the brand to the target audience likely to watch such a film.

The film which released a few months back touted also as `the dark side of desire' featuring Bipasha Basu in the main lead, roped in Zingaro beer from Millennium Alcobev as its `in-film' advertising partner.

58 The brand synergy of the brand and the film is that "Zingaro is based on the platform of having a light-hearted strong feeling." The story of Jism revolves around a woman who has an extra marital alliance and then uses her lover to kill her own husband.

Thus Zingaro, "the light-hearted strong beer" is featured in the film at places such as a shopping mall and a bar as well as in a general song. With the ban on liquor advertising, Alcobev has always been using non-conventional media to get brand recall for its flagship beer brand of Zingaro which sells 2 million cases per annum.

While this may be Zingaro's maiden venture in making itself visible in a feature film, in the past the brand has used surrogates to get noticed. This included having a surrogate product such as a non-alcoholic beer under the Zingaro brand — a product that is still used while advertising for the brand.

"Today Millennium Alcobev is looking at all neglected areas of sports sponsorships as well for the Zingaro brand. These could range from individual sports such as go-carting to team sports such as corporate cricket."

The deal for the in-film placement for Zingaro has been struck by Leo Burnett's film marketing division — Leo Entertainment. As per Leo Entertainment’s model of cinema branding, the purpose is to leverage the brand to the potential of the film and one should know which segment to approach.

59 Besides, Leo Entertainment used the brand association further by producing a calendar featuring Bipasha Basu which will be given away to consumers who buy a case of Zingaro beer free of cost. Leo claims that it usually takes about 3-4 months for a complete brand placement exercise and fees could range between Rs 5 lakh and Rs 5 crore." Alcobev is believed to have spent Rs 15 lakh on this in-film branding exercise in Jism. BAPASHA BASU & JOHN ABRAHAM - ZINGARO “JISM”

PLACEMENT OF BRANDS

Evolution' is a flick that belongs to the Jurassic Park genre. The storyline goes like this: Alien-life forms find their way into our planet. Scientists are discovering ways to destroy them. After some research, they find the answer. No, it's not a retired cop or a hunk of a hero who comes to rescue the world. Instead... well... it's a brand of

60 shampoo. Sounds ridiculous? Let's explain. This brand of shampoo contains a certain chemical which destroys dandruff and dinosaurs. So shampoo saves the world and we live happily ever after.

The movie ends. This story begins.

This is a classic example of a brand using the medium of cinema to promote its message. A number of marketers are now using movies to project the core values of their brands. In-film advertising, in its most effective form, is about a brand being a part of the cinema's content. Many global brands are now turning to this medium for the sheer impact that a movie can make on its audiences. Take for instance, the Hollywood flick `What Women Want'.

This Mel Gibson starrer has a Nike commercial as part of the script. It gels with the script so well that you don't realize you're watching a commercial camouflaged in the screenplay.

Ψ BRANDS PROMOTING FILMS

Earlier, in-film advertising was merely brand placement. The brand was just a part of the scene as a prop, an accessory or as the backdrop, at the most. In return, the advertiser sponsored the movie's publicity and promotions. ``Brands associate themselves with film promos because they get huge discounts on airtime on channels. It is good exposure at a low cost,'' says a media planner.

For instance, HLL's brands such as Bru, Taaza and 3 Roses have been sponsoring film promos. Bru was associated with the promos of Manirathnam's Alaipayuthey. Recently, 3 Roses, the largest selling tea brand in the South, was involved in jointly promoting a Telugu movie, Prematho Ra, produced by actor-producer Venkatesh.

61 This co-branding exercise in theatres also had on-pack contests where winners would get a role in Venkatesh's next movie. There have been other localized promotions. For example, 3 Roses, was also associated with the Madhavan starrer Dum Dum Dum, where the perfect couple in a show would get a prize.

BRANDS- A Part of the Story!

However, advertisers are now looking at in-film advertising for more than just presence. They expect the brand to naturally weave in with the story. Just being there in the film is not good enough, there has to be thematic connect. The brand's message has to be crafted into the story in the most subtle way possible.

It is important for the film's content to be customized to carry the brand's message to the audience. For instance, Cadbury's Five Star has associated itself with a Tamil movie called Choklet, which depicts youth and fun. There is even a song in the movie which goes `Five Star, Five Star'.

In-film, however, is not about a brand entering the screen at every possible opportunity. The picturization of the scene should be such that the audience does not get the feeling that the brand is an intruder and has made an appearance only because the brand has paid some money to the film-maker.

Marketers also expect a brand to be associated only with a story which is relevant to the value that the brand portrays.

62 There has to be a `brand fit' between the story line and what the brand stands for.

FAILED STORIES

DOES in-film placement really offer value for money for brands? It's a multi-crore question and corporates seem to be groping for an answer. For instance, Pepsi India is believed to have invested close to a crore in the recently released Baba for its Mirinda brand. The movie, meant to be superstar Rajnikanth's biggest release, failed to stir up the box office and fell short of expectations.

63 Coca-Cola's recent attempt at ambush marketing — getting Pepsi's star endorser Amitabh Bachchan to associate with arch rival Thums Up in Mahesh Manjrekar's multi-starrer Kaante was a controversy. Last year, HLL ran a heavily publicised promotion for the Hrithik Roshan, Kareena Kapoor & Rani Mukherjee starrer Mujhse Dosti Karoge for its Kwality Walls brand. However, the movie flopped. Another dud at the box office was the Pantaloon-promoted PFH Entertainment Ltd's production Na Tum Jaano Na Hum starring Hrithik Roshan and Esha Deol. Pantaloon had tied up with Shopper's Stop to merchandise clothes and soft toys associated with the film. Neither the film nor the promotion worked.

There are certain inherent risks in in-film advertising. First, there is a risk of the movie failing to appeal to the audience. For instance, Coca- Cola and Pass Pass were associated with Subhash Ghai's `Yaadein', but the film flopped. So, unless the movie clicks, the brand's association with it is futile.

There is a risk of a negative fallout on the brand if the film fails. But some advertisers seem to be willing to take the risk. After `Yaadein', the brand `Pass Pass' is now associating itself with a regional movie, titled `123'. In most cases, the advertiser has little control over the content. Even if he does, it is impossible for him to ensure that the movie will work. Also, there are no specific standards for advertising in this medium. How would one work out the price? There are no rate cards or verifiable figures.

From a producer's point of view, it is all about covering his costs. But costs vary depending on the quality and the quantity of the resources employed. And there is no way a brand manager can question the rationale of production costs. Added to this, advertisers also have their own limitations of budgets to worry about. Being an incidental

64 medium, only a small percentage of the total budget can be used. In most cases the brand does not derive the benefit it expects.

Experts believe that the medium, at best, can be used only on an ad hoc basis. A brand cannot plan to use this medium. If and when a good script comes up that fits the brand properties, only then it can be used.

Despite these apprehensions, many believe there is tremendous potential and scope for growth in this medium.

The future is all about the producer, the brand and the communication expert coming together and working out an idea or a story board. Everyday some producer is roping in some brand for his movie. But all of them categorically rule out brands becoming producers themselves. But then who knows?

There is a new Tamil movie called Three Roses in the pipeline. HLL says it has nothing to do with the film's title, but then, it does not deny that it may associate with the film at a later stage. Brands have a greater role than being mere ambassadors - they also have to become stars.

CONCLUSION

Awareness about product placement in movies is fairly high among the youth of today. Much of this can be attributed to the corporatisation of the movie industry, growing availability of information regarding the corporate – film industry alliances and the increased interest of consumers in the advertising context.

65 However, the extent of this development has been restricted to a certain age group or a certain class of well informed and interested individuals and is yet to percolate into general society.

As mentioned earlier the system has had many failures too. In spite of the past failures In Film Advertising is on a rising stage with its prospects growing by the day.

In a world, where innovations and creative business practices are a necessity for the survival of organizations, In Film advertising provides marketers with the power to give their product a wider reach.

“It's about building a connect”. As brands evolve, they need to look beyond the conventional (print, TV and outdoor) media. Mature brands are already well- known. They don't need to build awareness, they need to create relationships.

However, new brands or new product categories stand to gain more from in-film advertising rather than well-known brands. Established brands could just become a part of the scenery and not even be noticed. But this medium is for sheer impact and not for numbers.

From the study we can infer that films can only be a supportive medium. A TV commercial is the primary source of communication for the benefits and the imagery of a brand. In-film can only provide one more meeting place for the brand and its consumers. It can establish a larger-than-life image in the minds of the consumer.

In Film advertising works! Well placed, on-screen brand exposure can immediately impact your sales, increase awareness, enhance brand

66 image, improve employee morale, and generally catapult your past competition.

This highly visible, efficient activity is an accepted element of the promotion mix used by most of America's favorite and best-known brands and now in India.

BIBLIOGRAPHY

WEBSITES: www.domain-b.com www.highroad.com

67 www.responservice.com www.thehindubusinessline.com www.indiantelevision.com www.blonnet.com www.rediff.com www.economictimes.com

BOOKS:

Meenakshi Chauhan- Advertising: A social challenge, Baroda.

Micheal Vaz- Advertising, Mumbai.

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