There are four types of Product Placement options to brands and production companies. The first is a straight trade out or loan of the product. This provides production a cost savings on their bottom line.
The second is a barter trade out of the product. This provides production complimentary product that again saves on their production costs on a larger scale. Obviously not all brands len themselves to this – but a beverage or snack brand company might provide a couple of pallets of product for the crew to consume during production, a mobile phone might provide service for key production executives or the entire crew, an automotive partner might provide production loan vehicles for production to use to transport key executives and talent, and many other types of companies might provide a cast and crew gift for the wrap of production.
The third type of product placement is a cash fee for a storyline to be built around the brand’s core messaging.
The fourth type of product placement that can be secured is through leveraging the brand’s already planned media buy for TV, Print, Radio or Digital, and co-branding that with the title treatment of the production and/or imagery from the production. For large scale blockbuster films the production company / distributor is more wisely seeking a bigger and more powerful commitment – the ability to leverage the automotive manufacturer’s promotional advertising. Having the ability to co-brand the film within the brand’s advertising materials – TV, Print, Radio, Digital or even at retail – is equally important for both the brand and the film. The brand obtains the ability to build upon the product placement platform outside of the on screen exposure – creating a way to further increase the engagement with the consumer, and enhance the star power the association brings to the brand. The entertainment property gains reach and access to millions of additional consumers marketed to by the brand – without having to pay millions of dollars. It’s a win/win for both parties – with the caveat that the property needs to be one which resonates with the brand’s core consumer demographic.