3 days ago
Product Placement Marketing Can Work For Any Business
Tom Freiling, publishing industry C-suite veteran, 3X founder, former CEO of NASDAQ-listed publisher, Chairman & CEO, Freiling Agency.
As a publisher and marketing agency owner, I've witnessed firsthand how product placement has evolved from a subtle marketing tactic to a dominant force in advertising. What began as simple prop placements in early Hollywood films has evolved into a sophisticated, multi-billion-dollar industry. It can be a highly effective way to build your brand, but it's often ignored by small to medium-sized businesses.
From Hollywood Beginnings To Marketing Staple
Product placement dates back to when filmmakers began incorporating real products into their sets to enhance authenticity and reduce marketing costs. The 1982 film "E.T. The Extra-Terrestrial" marked a watershed moment when Reese's Pieces sales skyrocketed by 65% following the alien's on-screen candy consumption. This success demonstrated the untapped potential for brands to subtly engage with their audiences.
The practice gained momentum throughout the 1980s and 1990s as traditional advertising became fragmented. Audiences grew tired of intrusive commercials and developed subconscious ad-blocking behaviors, forcing marketers to seek alternatives. Product placement offered a solution to reach audiences when their guard was down.
Additionally, the return on investment for paid product placement was sometimes found to be better than that of traditional advertising, as placement costs could be lower than equivalent commercial time. It could also generate longer-lasting consumer exposure versus one-off paid advertisements.
Product Placement Can Work For Any Business
Based on my experience advising C-suite marketing executives, I observed that some still view product placement as a secondary tactic rather than a core strategic component. This can be a critical oversight. One of the most common misconceptions I encounter is that product placement only works for consumer brands or entertainment companies. In my experience, virtually any brand or company can leverage product placement. You simply need to be creative and actively seek opportunities.
For example, local restaurants can appear in community theater productions, financial services can sponsor mentions in personal finance podcasts and even niche professional services can find placement opportunities in industry-specific content. Corporate training videos, educational content, social media challenges, live events and even virtual conferences all present opportunities for placement. The possibilities are endless.
The key is expanding your definition of "media" beyond traditional entertainment, matching your brand's value proposition with relevant content environments where your target audience is already engaged. Every brand has a story, and every story needs authentic details. Don't limit yourself to obvious matches.
Product Placement Amplifies Opportunities
I'm embracing product placement in my publishing work, though with more subtlety than visual media. I work with authors who increasingly weave specific brands into their narratives, from characters driving particular car models to using recognizable technology products. For example, a novel might feature characters shopping at real retailers or dining at actual restaurant chains, while thriller writers incorporate authentic corporate settings and brand names to enhance realism.
A notable book publishing example I often reference is Fay Weldon's novel "The Bulgari Connection," commissioned by the luxury jewelry brand Bulgari, which featured the company's products throughout the storyline. I've begun to facilitate similar partnerships in my own publishing house, recognizing that brand integration can provide additional revenue streams while funding marketing campaigns for book launches.
Looking Forward
As someone working at the intersection of publishing and marketing, I see product placement continuing to evolve as consumer behavior and technology advance. The future is likely to hold more sophisticated integration, with personalized placement based on individual viewer preferences and consumption patterns. As traditional advertising effectiveness continues to decline, I expect brands will increasingly rely on product placement.
Success will belong to those of us who master the balance between commercial objectives and authentic storytelling, creating value for both brands and audiences in the process.
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