Case 8-5

Product Placement in Prime Time

Adam Wurr, Carmela Garcia Lammers, Christine Knop

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Product Placement An advertising method used by companies to subtly promote their products through a non-traditional advertising technique, usually through appearances in film, television, or other media.

Only major placements make a profit.

“People forget that television started with products. Without ads, there is no television.”Lisa Maniker, Vice President of Television, International Promotions

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Definition from Business Dictionary.com & Lisa Maniker (Carmela)

Case Recap

Television Producer Abram Silverman’s new show On Deadline

Arthur McNeal representing Unicor Computers, Inc., presented Silverman with a product placement deal

3- On Deadline: a realistic look at the techniques of two investigative reporters for a large daily newspaper. - Arthur McNeal: Unicor Computers, Inc., a small but aggressive competitor for the computer market. McNeal felt On Deadline had “star” quality and wanted to place Unicor’s computer within the new program. (Adam)

Arthur McNeil’s Terms

“Our offer is for two million dollars in the first season. Since the newsroom set for On Deadline will be filled with computers, Unicor will supply the hardware. Our brand name will be affixed prominently to the front of the unit so that it is visible while the reporters are working at their desks. Ditto for the laptops they take on assignments.”

“In this case, if the producer wants to create a quality television show and stay within budget, product placement is the key to success.”Heston Roewe, Happy Madison Production, Assistant Video Editor

4Remember to mention that McNeal said if the show goes into syndication (when a television station takes reruns and re-shows them, Ex. Friends), Unicor will offer additional financial incentives in exchange for replacing electronically the current computers with new models using digital technology. So the first-run shows and the syndicated versions can be used as marketing vehicles. (Christine)

Initial Reaction (for) Adam Wurr, Sophomore, Media Production

“My initial reaction is that the show should definitely use the product placement in.  I feel that product placement does not have an impact on viewer-ship. From a business aspect, it would cut down production costs, not only from the money they would receive, but the producers would not have to purchase computers for the set.”

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(Adam)

Initial Reaction (for) Carmela Garcia Lammers, Junior, Advertising & Spanish

“Abram Silverman is in a difficult position, but as a television producer, I believe he should keep the budget of On Deadline in mind before worrying about how the audience feels about the placement of Unicor Computers throughout the program. Without a budget, Silverman would not be able to produce a program worthy of an audience’s attention. Due to the fact that On Deadline involves journalists spending most of their working hours on computers, I believe the audience would rather recognize a computer brand over a black piece of tape covering a brand name.”

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(Christine)

Initial Reaction (for) Christine Knop, Junior, Media Production & Sociology

“I don't see why product placement within a television show would affect viewers very much because people usually know when products are within a show.  I also think that it would benefit the show On Deadline by helping them with their budget. The only opposition I have to products being placed within the On Deadline show, was that I would be concerned if the show had to change in anyway to make sure that the products were shown during certain episodes. That would then change the program and viewers would be discouraged and drawn away from the show.”

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(Carmela)

Lisa ManikerVice President of Television, International Promotions

Do you think consumers really care about product placement? “No, so many times product placements exists and people don’t realize it. It’s a coincidence that writers happen to write it in.”

What obligations would Abram Silverman owe the audience? “None...at least there shouldn’t”

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Established in 1989, International Promotions has developed quality long-term relationships with Fortune 500 companies and production companies earning them the reputation of being one of the most reliable and service-oriented entertainment marketing agencies in the industry.Clients: Volvo, Corona, Ben & Jerry’s, The Office, CSI, 24, Desperate Housewives, Twilight, etc.

Jonathan Adelstein Former FCC Commissioner

“There's nothing wrong with product placement so long as it's disclosed as required by law. The idea of the disclosure laws is that the public needs to know when they're being advertised to. The whole idea of product placements is to advertise to people when they're not expecting it.”

“I just want to make sure the disclosure -- if it's at the end -- runs for a sufficient period and a sufficient size so that people can read it and know they've been advertised to.”

Interview retrieved from The Wall Street Journal (2005)

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“Product placement can go both ways.” Use your examples of reeses pieces and cast away.

Heston RoeweHappy Madison Production, Assistant Video Editor

“My main thought on product placement is that we're surrounded by brand named products all the time in real life, having brand names in a show or film just makes it more realistic than having fake names like Dall, Harlem-Pecker, or MacEntob computers.”

“It could be from the type of car that someone drives in a film or to the type of soda someone drinks.  It is all product placement.”

Assistant at Happy Madison Production - 3 yearsB.A. in Cinema Studies - University of Iowa

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Adam

Robert PritchardIowa Lakes Community College, Broadcast Media Professor

“I see nothing unethical about using product placement…if it helps to get the job done or the TV show on the air, the ends certainly justify the means”

“Product placement truly is just another form of advertising.”

Masters in Education - University of Sioux FallsBroadcast Professor - ILCC (5 years)Experience in radio, television and newspapers for both sales and production

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Adam

Jay VanduchHead, TV (Thomson-Vanduch) Productions Incorporated

“In entertainment, product placement has no ethical problem.”

“Product placement can go both ways.”

WHA Television - Madison, Wisconsin (5 years)South Dakota Public Television - Brookings, South Dakota (6 years)Graduated in Communication Arts - University of Wisconsin, Madison

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Christine“Product placement can go both ways.” Use your examples of reeses pieces and cast away.

Stephanie Ring Producer/Reporter, CTN Studios

“Full disclosure would be a good option.”

C. Vision Productions - Co-owner B.S. in Broadcast Journalism and Speech Communication

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Christine

Andrea YochDirector, Integrated Marketing, Kare 11

“We do full disclaimers during the show saying that the placement was paid for by an advertiser.”

Northway Sales and Marketing - FounderManager, Special Events, Promotions, Public Relations & Marketing - WCCO

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Christine

Ethical Issues

1. Whether members of the audience, if they were aware of product placement, would be offended by it.

2. Whether commercial messages are so ubiquitous that consumers are becoming more sophisticated in evaluating underlying motivations and perhaps resisting the influence of the product.

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(Adam)Ask audience members to raise hands and answer two questions:1. Are you aware of product placement when watching television programs?2. Does the placing of these brands within television programs affect your view of the program?

Population Representation

4%8%

88%

Yes No Sometimes

Are you aware of product placement when watching television

programming*

Does the placing of these brands within television programs affect your

view of the program?*

17%

46%

38%

Yes No Sometimes

*survey based on a population of 50 random people, between ages 19-55

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Summarize charts. (Carmela)

Duties in Conflict

1. Fidelity: Silverman owes it to his cast to produce a show viewers will want to watch. 

2. Self-improvement: Silverman is aware that his future as a producer is on the line if he chooses not to do what's best for his show. 

3. Veracity: Silverman should inform his cast and audience of the placement of the product. Even if it's at the end credits. 

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Christine

Alternative 1

Duties in Conflict:1. Self-Improvement: On Deadline could be cancelled and Silverman would lose money and garner himself a bad reputation in the business.

2. Not to Harm: If On Deadline got cancelled, members of the cast and crew would be out of jobs.

Not place Unicor computers withinOn Deadline

“Product placements are effective.”Lisa Maniker, Vice President of Television, International Promotions

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Carmela

Alternative 1 Continued Not place Unicor computers within On Deadline

CONS •Show could be cancelled• Silverman’s professional reputation would be harmed• Unicor would lose a potentially large customer

PRO• The audience would not feel pressured into buying Unicor computers

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Alternative 2 Place Unicor computers within On Deadline, without disclosure

Duties in Conflict:1. Self-Improvement: Silverman’s reputation as a good producer will grow, but the audience will see him as deceiving.

2. Veracity: Silverman has a duty to tell the audience the truth.

“If it gets to some point where they're demanding specific close ups or a particular amount of screen time, then that's interfering with the director's job”Heston Roewe, Happy Madison Production, Assistant Video Editor

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Adam

Alternative 2 Continued

Place Unicor computers within On Deadline, without disclosure

PROS • Silverman will make a lot of money for On Deadline• Higher quality show• If the show is extended for another season, Unicor will provide more money•Unicor will gain customers

CONS • The audience could be deceived• Silverman’s professional reputation would be harmed•The show could lose its main focus, the reporter

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Alternative 3

Place Unicor computers within On Deadline, with full disclosure

Duties in Conflict:1. Self-Improvement: Silverman would have a good reputation with his audience and his production company.

2. Veracity: Silverman has a duty to tell his audience the truth.

“In entertainment I believe that the show should have a full disclosure telling viewers that these products will be placed within the show and these are our sponsors.”Jay Vanduch, TV (Thomson-Vanduch) Productions Incorporated

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Christine

Alternative 3 Continued

Place Unicor computers within On Deadline, with full disclosure PROS • The audience would know the truth• Silverman’s reputation •The show would get money needed for production •Unicor would get more customers•Better quality show

CONS • Silverman would have less control over the content from Unicor• The show could revolve

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Alternative 4 Place Unicor computers within On Deadline, with full disclosure, with a contract Duties in Conflict:1. Self-Improvement: Silverman would have a good reputation with his audience and his production company. 2. Veracity: Silverman has a duty to tell his audience the truth.3. Fidelity: Unicor would have to abide by the regulations of the set contract.

“If I was the producer, I would definitely make sure there is a contract in effect.  Make sure the contract states a number of times the computer will be shown in each show.”Heston Roewe, Happy Madison Production, Assistant Video Editor

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If Unicor declines the contract, Silverman could offer to re-negotiate. Christine

Alternative 4 Continued Place Unicor computers within On Deadline, with full disclosure, with a contract PROS • The audience would know the truth• Silverman’s professional reputation would stay intact• The show would get money needed for production• Unicor would get more customers• Higher quality show• On Deadline would have more control over Unicor• The show would be more realistic.

CONS •Unicor could decline the contract and possibly lose customers.

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Final Group Alternative (4)

Place Unicor computers within On Deadline, with full disclosure, with a contract • The contract would benefit all parties• If there is a dispute with the contract, re-negotiations would take place• The placement of Unicor computers is important on all ends of the spectrum

“Product placements are definitely a business arrangement. It’s no different from a commercial.”Lisa Maniker, Vice President of Television, International Promotions

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Carmela 1. Silverman’s reputation, audience would know the truth, Unicor would be gaining customers, show would succeed 2. A re-negotiation would take place if there was dispute over the contract3. There is a time and place for product placement and Because this program deals with reporters and their use of technology, the placement of any brand of computers would be important in the show. Viewers would recognize the brand and be able to relate to it.

Questions/Comments

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