Product Placement – Definition

Cite this article as:"Product Placement – Definition," in The Business Professor, updated October 11, 2019, last accessed October 26, 2020,


Product Placement Definition

There are many ways organizations and businesses advertise their products and services. A Product placement is a marketing strategy which entails the products and services of a company being featured in films, videos or television productions. The aim of product placement is to take the goods and services of a company to a larger audience. Companies who use the product placement strategy to advertise their products and services reach an agreement with a production company to have their products featured in films, radio programmes, television shows and other personal productions. In exchange for the advertisement, the company pays a fee to the production company.

A Little More on What is Product Placement

A product placement is otherwise called an embedded marketing or embedded advertising. The kind of agreement that exists between a company and the media company that will do the advertisement determine the frequency of the products and services in films or television programmes.

Usually, when companies use the product placement strategy, they market their products and services to a larger audience in a subtle way. The media personnel in charge of the television programme portray the goods and services in a good light making it possible for customers to develop a positive connection with the goods and services.

Also, the nature of goods and services being marketed and the target audience determines how the product placement will look like. For example, if they goods and services are brands for teenagers, such goods will not be advertised in an adult show or film. In most cases, before advertisers or companies get their products marketed through the media, they have paid for the service or exchanged their goods and services for the advertisement.

Product placement generates a lot of connections and feedbacks from viewers and customers, aside from the publicity it gives to the products and services. It is much easier to retain a product or service viewed in a film, a television programme or media shows than a product heard from a marketer who is often a stranger.

Product Placement Examples

Several companies advertise their products and services through the product placement strategy, there are many of them, so the list is inexhaustible. Popular brands that use product placement advertising strategy include, pepsi, coca cola, Toyota and many others. These brands do not use only one media firm or production company, this is why you see them feature in multiple films, television programs and personal shows. During football season, you see some of the products advertised in the course of the game. Through the product placement strategy, quite a number of them have attracted more customers and clients and have also increased their recognition.

The spread of product placement strategy is becoming uncontrollable as many companies resort to media and digital means of advertising their products and services. Rather than use the traditional methods of advertisement, companies have begun to use sophisticated and digitized methods of market in which product placement is at the forefront. This is why you see many short videos posted on websites, personal performances created to market a product, television programmes and marketing in films.

Also, in certain cases, when advertisers do not not their brands or product names to be featured in a production, ‘product displacement’ or ‘greeking’ can be used. This entails the removal of the logo or label of the product digitally.

References for “Product Placement…/what-is-product-placement-definition-history-examples.html › Money › Business › Marketing

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