The Growth of Product Placement

The idea itself became common in the 1980s, but the origins of the process can be traced back to the birth of television shows. Even a simple thing such as an actor wearing a logo on his/her shirt can be considered product placement or a character’s dialogue where s/he extols the virtues of a particular product without it being shown is also product placement (Lehu, 2007). Today, major films often contain quite a few product placements of which a very good example is the positioning of BMW as a luxury and performance car by the link to cultural icons like James Bond. Such continued product placement can only help the brand in the future (Galician, 2004).

In this manner, the secret of product placement seems to be directly connected with the way the product is presented to the viewer and the manner in which it is shown to be used. In recent years, the idea of placing products within television shows and movies has grown exponentially and while there are several reasons why marketers are pushing product placement, the cost of product placement is also rising. Therefore, for the marketers of the future, it is important to understand this vital aspect of marketing since it may become the primary method of advertising as compared to other systems.

In 2005, the amount of company-paid product placement rose by more than 40 percent and the total figure stood at more than a billion pounds. It is expected that it will cross the three billion-dollar mark in 2006 and will only keep increasing every year in the foreseeable future. The simple reason for this is that brand managers are starved for ways to engage the public in appreciating and noticing their product (VOX, 2006).&nbsp.In a few more years, i.e. 2010, the paid product placement market is expected to be at more than 7 billion dollars.