More Spending Spurs Bigger Role For PR In Product Placement

Amid last month's crowning of new "American Idol" Carrie Underwood was a reminder that, as part of her various prizes, Underwood would get her very own Marquis Jet Card.

The card, which caters to individuals (and businesses) who want immediate access to the world's top aircraft, has been featured prominently in this season's "American Idol"
as well as in the first season of "The Apprentice" and in the feature film "Fever Pitch," which Marquis' PR firm, Andy Morris and Company LLC (New York City), was quick to
point out in a press release distributed the day after the season finale of "American Idol."

The Andy Morris reminder is part of the mad scramble among PR execs to get their clients' products, services, et al., placed on the most popular TV shows (both network
and cable) and in feature films.

While product placement has been around for years -- remember Reese's pieces in the 1982 blockbuster "E.T."? -- the increasing fragmentation of traditional media is
causing marketers to take a closer look at alternative ways to reach their audiences.

According to custom-media research firm PQ Media (Stamford, Conn.), product-placement spending will reach a record $4.25 billion this year, a 23% increase compared
with the $3.5 billion spent in 2004. And while product placement jumped 31% in 2004, advertising and marketing expenditures rose just 7%.

For PR professionals who have antennae for product placement, opportunities abound.

Still, it's a fine line between having products strategically placed in an appropriate context (of a TV program or a movie) and shameless selling. With that in mind, we asked
a few PR experts with experience in product placement to provide some tips on how to navigate this expanding terrain.

Randy Orndorf

Director
Lane Marketing

917.639.4033

[email protected]

When pursuing a product placement, PR professionals help drive what type of print or broadcast outlet is best. Understanding the target audience and what appeals to users is
a core consideration of how a product is placed.

Budget is an important factor to the placement process. There are a lot of details to consider, such as product costs, creative projects, third-party fees and other related
charges. It takes more than just PR resources to make it all happen. Pitching a product placement can involve negotiations with talent agents, managing creative design cycles or
protecting copyrights. It is important that PR professionals help establish who is managing all aspects of the placement process.

Often, the added value PR has with product placements is enhanced with a separate communications strategy designed to drive additional awareness. News can be developed to
pitch regional and industry outlets or framed on a company Web site. Additionally, internal communications or customer email campaigns generate word-of-mouth awareness. The bottom
line is that PR and corporate-communication professionals help put the buzz behind a creative product placement.

Tips & Suggestions:

  • Showcase the features and benefits of a product.
  • Keep placements in line with core values of the brand.
  • Align marketing and sales efforts in a placement campaign.
  • Replicate successful placements in different markets.

Richard P. Rizzuto

Senior Partner & CEO
RPR Marketing Solutions

212.352.9090

[email protected]

For PR managers to assess product placement efficiently as a trend, they must first recognize and identify exactly what product placement is. Internally, one way to do this
is to watch your favorite TV show or movie and write down each item you believe has been placed.

If, at the end of the program, your paper is blank, then the company that executed the placement did its job (in this particular instance), making it seamless enough where --
although you may have heard the brand name, you subconsciously associated it with the celebrity who mentioned it and you made a mental note to buy the product -- you did not have
the feeling that you were being "pitched" or "sold" via the "placed" message.

On the other hand, if done tastefully and correctly, a story line can be creatively built around a particular brand (e.g., the Pontiac Solstice on "The Apprentice"), which
can have the same positive effect on consumers.

In my experience, PR managers today are not necessarily ignoring this type of exposure, but they are not appreciating the full potential value, either. Since TiVo and
other DVR's were introduced to the marketplace, there has been a decline in the "viewership" of traditional commercial spots. Most consumers now have the ability to fast-forward
through commercials; therefore, it's imperative that PR managers evaluate product placement in a non-bias fashion. They should certainly not abandon traditional advertising, but
rather, they should let the two methods (product placement and traditional advertising) work in harmony until one of them proves to be more successful than the other.

Product placement, if executed correctly, can work for consumer products and B2B services alike. It's just as effective to see Angelina Jolie [in her next blockbuster] pick
up a new iPod, talk about it, virtually endorse it, and then put it back down as it is for her to say [in a "work place" environment], "Hey, I need more copier paper. Call
Staples and have it delivered."

In five years, there will be no more "commercials" as we know them. That is why it is important for brands to experience product placement now, while the trend is still "up
and coming" and it can [usually] be tailored specifically to anyone's budgetary considerations.

Julia Tanen

Principal
Mavens & Moguls

508.346.3320

[email protected]

Whether you're pitching Better Homes & Gardens, Country Home, Family Circle, In Style, O The Magazine, Wired or "The Today
Show," the principles of effective gift- guide placement are universal. Here are eight ways to boost this year's holiday gift push to make the most of "Christmas in June:"

  • Be The Early Bird: Editors everywhere, from Forbes to Better Homes & Gardens, close their gift guides early. Get your holiday packages for
    magazines and newspapers ready to mail by the end of June.
  • Just-In-Time Delivery: Don't overload every editor on earth with your holiday product. Send them when they want. Pitch magazines and newspapers early but don't pitch
    television until sweeps weeks are over.
  • Hone Your List: Never send your product out blindly. Do your research, find out who wants your package, get the name right, and then send it.
  • Create An Experience: Editors get hundreds of gift items. Make it easy to love yours. Skip the required reading, and deliver an experience with flair...such as taste,
    touch, smell.
  • Be Tasteful: Don't overdo it. Respect an editor's sense of taste, and imagine that you are sending the holiday package to a well-respected friend.
  • Relentlessly Follow Up: Follow up until you get a "yes" or a "no," but don't wait for editors to call back. Put in a quick daily round of calls until the editors are
    there. And don't stalk (once on the blacklist, always on the blacklist).
  • Know The Editors: During the years, we've made friends with many gift-guide editors, and the relationship helps. Editors want to be treated like humans...so make
    friends whenever possible (but don't be overeager).
  • Don't Pitch Boring Or Not-So-New Products: Years ago, we worked with a consumer- products company that insisted we do a gift-guide mailing for an in-the-ear electronic
    thermometer. Be sure that you choose a brand-new product that is truly innovative, and be clear on why it's unique.