Product Placement Marketing

The traditional television commercial is under threat, with personal video recorders (PVRs) – which allow time-shifted viewing and ad skipping- now present in 47% of Australian homes. With the use of PVRs, viewers are finding even more ways to tune out brand messages. With only 9% of people claiming to be engaging in the traditional 30-second television spot, advertisers are in need of an effective alternative.

New technologies have allowed digital virtual product placement, which allows brands to be inserted into scenes at post-production stage. This technology narrows the window in which advertises must be involved in the production process. Traditional product placement involved placement brands needing to be involved anywhere between three and nine months before the show goes to air. Whereas digital insertion can be completed within a matter of days, allowing advertisers to make more timely decisions about how and when to integrate their brand into shows.

Unlike the traditional 30-second spot, product placement within scenes of a television show or movie is delivered to a captive audience. Digital product placement is new in the Australian market and only time will tell if brands rush to take advantage of the reduced lead times and the ability to insert current campaigns into programs.

Source: B&T Magazine, March 16 2012

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