IBIMA Publishing Journal of Marketing Research & Case Studies http://www.ibimapublishing.com/journals/JMRCS/jmrcs.html Vol. 2013 (2013), Article ID 561655, 13 pages DOI: 10.5171/2013.561655 Research Article Product Placement: A Booming Industry in Search of Appropriate Regulation Tara Al-Kadi Journalism and Mass Communication, the American University in Cairo, Cairo, Egypt Correspondence should be addressed to: Tara Al-Kadi; [email protected] Received 22 December 2012; Accepted 22 December 2012; Published 24 March 2013 Academic Editor: Miltiade Stanciu Copyright © 2013 Tara Al-Kadi. Distributed under Creative Commons CC-BY 3.0 Abstract Product placement is a booming practice that, in some cases, seems as the viable alternative to traditional advertising. The paper discusses the growth of the promotional technique of product placement. The size of the product placement industry and its penetration of different mediums are closely examined. This is followed by a detailed comparative analysis of product placement practices around the world and investigation of the factors that help shape country-specific regulation. Keywords: Product placement, advertising, regulation . Introduction divergent international regulatory policies associated with this practice. The aim is to Product placements are best illustrated provide marketers with a realistic through examples. Williams et.al (2011) assessment of product placement’s potential supply readers with a long list including and limitations. Austin Powers blasting off in a Big Boy statue rocket, Will Ferrell promoting Checkers and Product Placement Definitions and Rally's Hamburgers in the comedy Talladega Examples Night s, MSN appearing in Bridget Jones' Diary , and the Forrest Gump script utilizing The value of product placement is better the Bubba Gum Shrimp Co. restaurants. This appreciated when one analyzes the numbers relatively new technique is widely used and associated with this marketing phenomenon. prevalent in almost all mediums. Various According to the Reed Business Information studies indicate that product placement is (2002) in the James Bond film Die Another growing as a viable alternative to advertising. Day , Ford motor company spent $35 million The following is a thorough examination of to replace BMW as the official auto supplier product placement literature which sheds for the James Bond brand . In the same film light on the history, financial value, and British Airways flies James Bond and Omega _____________ Cite this Article as : Tara Al-Kadi (2013), " Product Placement: A Booming Industry in Search of Appropriate Regulation," Journal of Marketing Research & Case Studies, Vol. 2013 (2013), Article ID 561655, DOI: 10.5171/2013.561655 Journal of Marketing Research & Case Studies 2 is prominent on his wrist. In total, Die writers being paid by publicity agents to use Another Day contained product placements certain brands in scripts emerged as a for 20 consumer brands. In addition to film serious concern about media ethics. product placements have found their way into television, songs, books and video The definition of product placement has games. According to Kim and McClung (2010) evolved over the years. Earlier examples of product placement is on the rise in the video product placement were more focused on the game sector. For example, in 2004 Electronic mediums of film and television. Gupta and Arts Inc. (EA), an internationally renowned Gould (1997) described product placement video game publisher earned an estimated as the integration of brands into films in $1.5 million in revenue from five in-game return for money or some form of promotion. product placement deals with advertisers. Product placement is defined by Similarly, Gutnik et al. (2007) state that Balasubramanian (1994) as a paid product spending on in-game product placement was message aimed at persuading audiences estimated at $300 million in 2007, with through the planned inclusion of a branded projections of $1 billion in spending by 2010. product into a movie or television program. With time more up to date and all Product placement may deceptively appear encompassing definitions of product as a recent technique born in the last thirty placement were developed. Wenner (2004) years. Researchers like Karniouchina, Uslay, describes product placement as the use of a and Erenburg (2011), believe that product brand by an actor in a film or television, or placement originated in the 1970s. This is the incorporation of a brand in the mainly because product placement shot to background of a scene. It may also involve the fame after the use of Reese’s Pieces chocolate use of a brand logo, a shot of a brand’s brand in E.T. the Extra Terrestrial film, in billboard, or even the airing of a brand 1982 (Yu, 2006). However, Newell (2006) commercial in the background. Kim and traces the development of product placement McClung (2010) believe that the meaning of and demonstrates that product advertising product placement has evolved as various has been intertwined with motion pictures promotional techniques developed and and television communities since the 1890s. become more sophisticated. Generally, He cites as an example the1895 the Lumiere product placement refers to the brothers’ film The Card Game in which there incorporation of brands in film, television is a product placement of a beer by Frank programmes, music videos, games, plays or Claire, the Lumiere brothers’ father in law. books for promotional motives in return for Additional early examples of product financial or other privileges (Kim and placement include, Thomas Edison's film McClung, 2010). A recent interesting view Streetcar Chivalry in 1905 which takes place defines product placement as the merge of in a commuter car full of posters for Edison’s entertainment and advertising by plugging a products and photos promoting his product within engaging media content. industries. By the 1930s it was a common (Williams et al., 2011) The expansion of practice to have "tie-ups" in which products product placement into new social media and were offered rent free in return for publicity interactive games is gaining more attention . (Newell et al., 2006). Not only were there According to Kureshi (2010) product early examples of product placements, but placement research in traditional media like there were also early effort of product television and film is decreasing as product placement regulation. According to Newell et placements appear in newer media like al. (2006) the first instance of product computer, video, digital, online, and placement regulation appeared in 1949 when simulation games. a mention of Southern Comfort was deleted from a comedy show, because it appeared to Russell (1998) distinguishes between three be too commercial. At that time comedy types of product placement. The first is _______________ Tara Al-Kadi (2013), Journal of Marketing Research & Case Studies, DOI: 10.5171/2013.561655 3 Journal of Marketing Research & Case Studies __________________________________________________________________________________________________________________ screen placement which contains a visual McClung (2010); Gutnik, Huang, Lin, and component such as an outdoor sign of a Schmidt (2007); and Homer (2009)} brand in the background of a scene. The forecasts the product placement business to second is script placement with an audio be growing and booming. On the other hand, component such as mentioning the brand Karniouchina et al. (2011), have disagreed name. Finally, she identifies plot placement with this prediction. They warn that product or connection to the plot. This occurs when placements will not continue to boom, but the brand is an integral part of the plot like will have diminishing effects with time, the car in James Bond films (Russell, 1998). which will consequently curb their growth rates. According to Wenner (2004) the concept of The rise to fame of the product placement product placement originated from the need technique did not only originate as a to have realistic television and film settings powerful promotional tool for brands. and props. Typically, producers assessed Product placement was also launched scripts and listed product placement because of its perceived lucrative financial possibilities which were then communicated value to filmmakers and broadcasters in need to companies with the relevant brands. of funding their dream projects. Lehu (2007) However, the process has evolved in recent explains that a state of increased competition years. Product placement agencies are more in the filmmaking industry requires higher proactive nowadays. Most of them initiate initial investments to secure a good crew, communication with TV and movie well-known actors and a good director, in the producers to discuss product placement hope that this would generate the expected prospects. box-office revenues. In this manner product placement contracts have become a crucial The Size and Financial Impact of the source of finance whether through direct Product Placement Industry funding or through providing the necessary film props free of charge. Product placement spending certainly draws attention to this booming business. Homer Regardless of whether the deals were driven (2009) states that the global business of by producers seeking to reduce production product placement was approximately US cost by acquiring free props or services, $7.5 billion in 2006 and estimated to beat the studios and manufacturers willing to create