MKTG 313 Lecture Notes - Lecture 10: Uptodate, Crass, Product Demonstration
Lecture #10
Disadvantages of Branded Entertainment
Some disadvantages are also associated with branded entertainment:
1. High absolute cost. While the CPM may be very low for various forms of
branded entertainment, the absolute costs may be very high, pricing some
advertisers out of the market. The increased demand branded
entertainment, coupled with the rising emphasis by the studios on cross-
promotions, drives costs up considerably. A study conducted by the
National Association of Advertisers indicated that 79 percent of
advertisers believe that the costs of branded entertainment deals are too
high. Some companies have ceased using this form of promotion citing
the rising costs.
Time of exposure. The way some products are exposed to the audience
has an impact, but there is no guarantee viewers will notice the product.
Some product placements are more conspicuous than others. When the
product is not featured prominently, the advertiser runs the risk of not
being seen (although, of course, the same risk is present in all forms of
media advertising).
Limited appeal. The appeal that can be made in some of these media
formsis limited. There is no potential for discussing product benefits or
providing detailed information. Rather, appeals are limited to source
association, use, and enjoyment. The endorsement of the product is
indirect, and the flexibility for product demonstration is subject to its use
in the medium.
Lack of control. In many movies, the advertiser has no say over when and
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how often the product will be shown.
Public reaction. Many TV viewers and moviegoers are incensed at the idea of
placing ads in programs or movies. These viewers want to maintain the barrier
between program content and commercials. If the placement is too intrusive,
they may develop negative attitudes toward the brand. The increased use of
placements and integrations has led many consumers to be annoyed by what
they consider to be crass commercialization. The FTC has explored options for
limiting placements without consumer notification, though they have not sought
increased regulation to date. Still others are upset about programs such as
Undercover Boss in which a CEO goes undercover in his or her own company
to see how his employees work. Critics contend that these shows are nothing
more than public relations disguised as programming.
Competition. The appeal of branded entertainment has led to increased com-
petition to get one’s product placed or integrated, increasing demand and costs.
As noted, the number of product placements seems to be expanding
exponentially.
Negative placements. Some products may appear in movie scenes that are dis-
liked by the audience or create a less than favorable mood or reflect poorly on
the brand. For example, in the movie Missing, a very good, loyal father takes
comfort in a bottle of Coke, while a Pepsi machine appears in a stadium where
torturing and murders take place—not a good placement for Pepsi. Emerson—
the manufacturer of the garbage disposal brand In-Sink-Erator—sued NBC for
showing a cheerleader getting her hand mangled in the program Heroes. NBC
never received permission from Emerson to show the brand.
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Document Summary
Some disadvantages are also associated with branded entertainment: high absolute cost. While the cpm may be very low for various forms of branded entertainment, the absolute costs may be very high, pricing some advertisers out of the market. The increased demand branded entertainment, coupled with the rising emphasis by the studios on cross- promotions, drives costs up considerably. National association of advertisers indicated that 79 percent of advertisers believe that the costs of branded entertainment deals are too high. Some companies have ceased using this form of promotion citing the rising costs. The way some products are exposed to the audience has an impact, but there is no guarantee viewers will notice the product. Some product placements are more conspicuous than others. When the product is not featured prominently, the advertiser runs the risk of not being seen (although, of course, the same risk is present in all forms of media advertising).
