MEDIA PLACEMENT OF PRODUCT AND LOCATIONS IN MOVIES

Abstract

The aim of this thesis is to highlight the phenomenon of product placement and relate this to the possible evolution of the concept of media placement of locations in film. We also aim to highlight the need for marketers and filmmakers to establish a closer relationship in order to facilitate location placements. Product placement is a relatively new idea within marketing. Despite this, it has become a more accepted and used concept, especially within the motion picture industry. It has been noticed that exposure on screen has had a positive effect on sales of the showed products, even though there are still no clear method to measure its efficiency. Evidence has shown that there is an increased tourism to destinations exposed on screen. Our purpose is to investigate if media placement of locations (defined as paying for the placement) is a possible future source of revenue for location marketers as well as film and product placement agencies. We have interviewed people from three main areas: marketer of a geographical location, product placement agency, and representatives from the film production. We see a potential development of location placements. Research has shown a relationship between movies and increased tourism. Destinations shown in movies stimulate an empathy and affective destination image, to some degree familiarity and an interest to visit these places. Many destination resorts, states and municipalities have discovered this opportunity and encourage the use of their locations as settings of movie and TV productions. Product Placement and hence also media placement of geographical places, i.e. location placements, is assumed to be a relatively low-cost advertisement (in terms of CPM, i.e. cost per thousand comparison of medium efficiency) for the municipalities. A product placement reaches many potential visitors over a long period of time. However, the initial cost may be high and the outcome is uncertain. Companies benefit from a new source of income and it becomes easier to find suitable locations with the support of the municipality. The purpose of this thesis is to investigate whether media placement of locations (defined as paying for the placement) a possible future source of revenue for location marketers as well as filmmakers and product placement agencies. We have chosen to focus on one medium, the motion picture industry, in order to get a deeper analysis and understanding than would be possible with a broad range of media. Moreover, motion pictures are regarded as the most powerful medium when it comes to describing a place.