Latest placements & deals

I just read this post from Detroit News on how automobile manufacturers are fighting over prized brand integrations.
1. MTV's Real World - the kids in this serial have a problem, they have only one car - Ford Expedition, and they are fighting over who gets to use it. The kids marvel and go wild over the car.

2. Ford has had some remarkable success with movies like Crash, XXX:state fo the union, Die Another Day (T-bird), and is featuring its cars in upcoming movies such as MI-III (Land Rover) and James Bond flick Casino Royale (new Aston Martin).










But there are challenges, movie schedules are long and manufacturers have to tie product launches to movie release date. But most say its worth the effort.

So how is a typical deal structured?
If Universal Studios comes to you and says we want $2 million for the placement of a Dodge Charger in our new movie, 'Miami Vice,' you tell them, 'Absolutely not. But I'll tell you what we will do. We'll spend $4 million on ad buys with you. Let's promote your project and let's promote our property,' .
That was the deal Chrysler struck with the producers of the recent Harrison Ford flick, "Firewall." The Chrysler 300 had a starring role and Chrysler heavily hyped the movie and its car on the Web.

More brand integration and placements in the news

I just finished reading few articles about brand integration in the news. It's great to see that the top marketers seem to be in synch with the importance and efficacy of this medium of advertising.

Here is a sampling:
"A survey by the Association of National Advertisers found that more marketers are using branded entertainment this year than last year, and most are doing it because they believe it is an effective way to reach consumers."

"Karen Soots, marketing media manager for Red Lobster, said her TV budget will be up slightly for the upfront. But considering the DVR environment, she said she'll continue to explore product integrations and other alternatives except for reality shows. "We'll move to more programming that may be more DVR-proof, like news and live sports."

"Eighty percent of companies participating in branded entertainment used TV as their medium of choice, while 45% used theatrical movies and 28% have used the Web"

But there are issues as well -
"The inability to measure branded entertainment's impact was a major concern among many respondents. Ms. Milway said this was sometimes an issue for Campbells because there's no good way to measure buzz. A multitude of marketing elements drive the business so it is hard to isolate how much each marketing strategy contributes to sales. "

Why is brand integration the wave of the future for TV ads

The TV traditional 30 second ad market is huge - $70B. But key technological trends are beginning to erode its value. The chief amongst them being DVR. DVRs are slated to be in 30% of US households by 2008 and these are the key demographic constituents. Almost 98% of these household skip ads while watching recorded TV. Add to that the viewing trends of today's generation - more folks are surfing the web and spending time playing video games v/s watching TV. i.e. 30 sec ad market is bleeding.

Off late, there has been a growing trend towards incorporating brands directly in shows. Remember the "junior mint" drop in Seinfeld or recent episodes of Apprentice with storyline integration. Networks and production companies are waking up to the fact that advertisers are well aware of the lack of effectiveness in 30 sec ads. Brand integration is the wave of the future for TV ads.