Product Placement in Movies - Academy of Marketing

that ads are “exaggerating” and are particularly annoyed by ads/promotion about loans and slimming
care products. Few of them do not like advertising at all and express strong negative feelings.
Compare to traditional advertising, young consumers found the covert marketing
communication--product placement more acceptable. None of the UK respondents felt negative about
this practice and only two HK respondents are against it. Respondents regard it as a win-win practice
for movie producers and brand owners. It is a good/clever way for promoting products while at the
same time brings movie producers extra funding.
Product placement and brand familiarity. Obvious differences emerged between the UK and HK
consumers with respect to the type of brands that are suitable for placing in movies. The UK
respondents found that both unknown and well-known brands are suitable for product placement.
They believe that small brands can benefit even more because of extra publicity. However, HK
respondents found that well-known brands are more suitable for placement. They tend to associate the
placement of unknown brands with promotional intention.
Regulatory and ethical concerns regarding product placement. Both the UK and HK respondents
understood that film production needs financial support and do not find it ethically wrong that film
producers receiving money from brand owners. Divergence is found in the two samples regarding
prior notifying audience about product placement. UK audience generally are supportive towards prior
notification. It indicates that the film has permission to integrate the brands which are not used
randomly. It also reduces complaints from audience. HK respondents are against the practice and
regard it as another round of promotion. The prior notification looks like reminding them that the film
is promoting something. The selling intention becomes so obvious. Few of them reported that they
may even consciously locate the brands in the movie. They believe prior notification would not
change anything because audience will be exposed to the brands regardless of being notified or not.
Prevalence of brands in UK and HK movies. The table below details the characteristics of brand
appearance in movies released in the UK and HK with highest box-office-hit each week in 2010.
Surprisingly, more brand appearances were recorded in movies released in the UK than in HK (277 vs.
180 brands). The HK sample contains slightly more well-known brands and a much higher percentage
of positively portrayed brands. A higher proportion of brands appeared in the UK sample is connected
to the plot and has character interaction.
Table 1. The prevalence of brands in movies released in the UK and HK in 2010.
Brand appearance characteristics UK HK
No. of movies analyzed 18+11* 18+11*
No. of brand appearance 242+35^ 145+35^
No. of brand appearance per movie 3~34 2~31
Most frequently appeared product category Durables Servicing/ retailing
% of well-known brands appeared 74.37% 78.33%
% of brands with character interaction 62.82% 46.11%
% of brands connect with the plot 37.55% 25.56%
% of positively portrayed brands 10.47% 21.11%
Note: *^ These figures belong to movies released in both countries.
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