Product Placement and DVRs

"If you marry the right product to the right script, you won't turn off viewers." - Dave Harkness, Senior VP for strategy and development for VNU Media Measurement & Information Group

This article is a great summary of product placement's history and its current uses. Advertisers spend about $1 billion a year on product placement, everything from placing fixtures in ABC's "Desperate Housewives" to giving Hummers to CBS's "CSI: Miami" cast at a cost about $55,000 apiece. In the past, Campbell's Soup paid the producers of "Lassie" to make sure that Timmy finished every episode they sponsored with a bowl of Campbell's Soup. Product placement began when TV took hold, and it will last as long as TV shows are so popular.

The rise of the digital video recorder (DVR) has some advertisers cringing, and others rapidly picking up on the product placement trend. Viewers can fast-forward through commercials, but some have no idea that they are seeing thousands of products advertised in their favorite shows. According to the article, two-thirds of DVR owners fast-forward through some commercials, therefore, it makes sense to have a back up plan. Product placement provides just that. In fact, Volkswagon will pay $200 million in the next five years on product placement in movies and on TV shows. This reinforcement is one of the best things advertisers can do. It reinforces what audiences are seeing in commercials or shows and reaches new audiences that are skipping commercials.

Will product placement replace the legendary commercial? Doubtful. But they work well hand-in-hand. Product placement occurrences doubled in 2003, and are continuing to grow exponentially. Advertising on TV is making the same move towards an integrated marketing communications plan as many other advertising, PR, and marketing campaigns.

For more info:
Product Placement Turns TV Programs Into Commercials