With more and more consumers getting DVRs that allow them to quickly and easily bypass commercials while watching television, companies are looking for new ways to connect with the television viewing audience. Traditional commercial advertising is losing its strength, so companies are investing more in product placement.
According to Investor's Business Daily, in 2007, product placement spending in television programs rose by 34% to $2.9 billion. Products are becoming integral parts of storylines rather than simply background clutter. We all remember the success of the Pez dispenser in a Seinfeld episode or the Junior Mints in another Seinfeld episode. Of course, I could go on and on with the Seinfeld references, but I'll stop there. Companies are hoping to reap the rewards of similar integerated product placements.
However, with integrated product placements comes concern from the FCC who wants clear disclosures for this type of product placement.
What do you think?
I think they're just taking a logical step to stay in the game. I don't think they'll get the same boost plunking the product down as they would being integrated into the storyline, but as you wrote, the opportunities for having a captive audience for a commercial are becoming fewer.
Posted by: Scott | June 30, 2008 6:07 AM | Permalink to Comment