BigBallinStalin wrote:patches70 wrote:BBS, you should ask Reese's Pieces about advertising in movies. ET did wonders for them. M&M's declined to be used in the movie, one of the greatest mistakes in the history of advertising.
Really? I don't think that kind of advertizing is as effective as people imagine it is.
Ha! That was the ultimate product placement marketing in the history of advertising. Reese's Pieces were new back then, not many people were buying them, people bought M&M's. Then ET comes along and it was the biggest boost Reese's Pieces could have ever had. Far more effective than TV commercials had been.
That movie turned Reese's Pieces into a household name.
A little article about the product placement business-
http://www.google.com/url?sa=t&rct=j&q= ... FwE8_hAoJQA quote from the article-
article wrote:Who can forget the touching moment when little Elliot offered Reese’s Pieces to his new buddy E.T.? No one, apparently. That product placement signified a turning point for the advertising industry, the moment when marketers realized a well-placed in-content ad could be just as valuable as—and leave a more lasting impression than—any billboard or 30-second commercial.
It can be a bad thing as well, for instance, having a product placement in a crap movie or shitty sit com. That's why M&M's declined the placement in ET, though they were offered the chance before Reese's Pieces. M&M thought the movie would be a bomb. How wrong they were. Not that M&M's really needed the product placement, everyone knew what M&M's were.
But for Reese's, it was a gigantic success. Maybe you are too young to remember but to get a look at what it was like for Reese's, you can look up a very old article (from 1983) in
People Magazine titled-
"Life is Sweet for Jack Dowd as Spielberg's Hit Film Has E.T. Lovers Picking up the (Reese's) Pieces"
Here is the article-
http://www.google.com/url?sa=t&rct=j&q= ... PQ84SLwddAWithin two weeks of the film's opening, sales for Reese's Pieces
tripled.
Reese's Pieces before ET were not even sold in movie theaters. Now you can't go to a movie theater and
not see Reese's Pieces for sale there.
Reese's paid $1million to have their product in the movie. The increase in sales paid for that investment tenfold at least and made Reese's Piece a premier confection.
I don't think any product placement has since had as dramatic an impact as the ET+Reese's combination.
So the answer to your OP is, History shows that product placement advertising in movies and other media can certainly have a big payoff, but like anything it entails some risk. If it pays off, the cost of the investment is well worth it in the form of increased sales, opening markets and product name recognition.