Tag: Sponsored Brand ads

  • Product Placement: Marketing Through Shows and Movies

    “We live in a world of advertisements”. This quote is aptly said as it constantly reminds us of advertisements everywhere. They are like gods, Omnipresent. You open a youtube video, an ad appears, you go to social media, an ad appears, you say “F you” to the online world and switch on the television and, yes you are guessing it right, an ad appears.

    They are so omnipresent that we now think that they are the reality. Guess, they’re not. Advertisements are all a marketing technique and the purpose is to make a product look like a blessing. It was cool and all until advertisements were manufactured claiming they were ads. In this digital hyper-connected world, we have arrived at a junction where we don’t know what is advertisement and what is not. This article is about marketing that is diffused within other forms of content, especially movies and TV shows. Let us read and see how cleverly we are made-to-believe products.

    Brand Marketing Over the Years
    Product Placement in Films
    Need for Product Placement
    Benefits of Product Placement
    Problems with Product Placement

    Brand Marketing Over the Years

    There are many forms and types of advertisements. We can see examples of ad print media, broadcast media, Online social media advertisements and many more. As technology evolves we tend to see it everywhere. We can see newspapers filled with advertisements, we can see our dish TV filled with all sorts of advertisements. Now, when the world is online, we can see ads everywhere online. They are on our social media timelines, on our Youtube account, on websites we travel and much much more.

    Except for every other factor, there is always one thing that is sure. We can immediately tell that we are watching an advertisement when we see one, but this surety is vanishing gradually. Now we can’t really be sure if we are watching an advertisement or an actual real thing that we would like to watch…

    Product Placement in Films

    What we are seeing is that brands are trying to diffuse brands even in the content we want to watch. Imagine watching your favourite actor Hrithik Roshan saying “I love coke” in a movie, how weird is that? This is a very common trick that brands apply to our favourite types of content. This feels like getting backstabbed. Whatever you can say about it, we can clearly see signs of it everywhere. However, it is a super-risky thing to do but can do very well wonders if done smoothly.

    Share of Product Placements 

    Welcome to the world of “Product Placement”. Where you cannot tell if something is real or it is an advertisement. Brands and movie directors do it so smoothly that it is often left behind in the scenes and no one notices them. In fact, your brain (That smart little organ) does notice that and subconsciously notes it down for future use. Like you see an actor drink ‘Coke’ in a film, you don’t really notice it but your brain does. You will then most probably and most likely order a coke when you go for lunch after that movie. Tweaks like these, here and there, are supposed to make a lot of difference in the long run. Brands are crazy about this and are paying huge sums of money to make this happen as smoothly as possible.

    Need for Product Placement

    We are going to see some examples to prove the fact that ‘Product placement’ is a real tactic of marketing. The reason for this is that normal people don’t really pay that much attention to these little “stranger things”. Let us see some unnoticed brand placements that only your subconscious mind notices,

    No matter your age, a Bollywood movie that almost everyone knows about is Koi Mil Gaya starring Hrithik Roshan and Preity Zinta. The movie is famous for the appearance of an alien named ‘Jaadoo’. Apart from this, the movie makes for a great example of the product placement of Bournvita. In this movie, it is shown that the young Rohit (Hritik’s character) loves to drink his milk with Bournvita in it. In some scenes, he even boasts about it to his friends and also offers some Bournvita to a winning kid in a game.

    Koe Mil Gya Movie Scene with Bournvita

    Another example from a movie starring Hritik is the Bollywood film “Yaadein”. It was a hit, like all other movies that star Hrithik Roshan. He is an all-time favourite actor in the business. But could you notice Coke’s ‘Product placement’ throughout the entire running time of the movie? This one rigid frame tells the same story, the “Coke in hand” almost everywhere. You might not remember but your brain must have noticed, “Cool people like Hrithik drink Coke”.

    The popular movie franchise “James Bond” did it all the time. Since the release of Dr No in 1962, the James Bond franchise has been associated with a number of brands. Many brands came in line to pay for promotions in future instalments for the famous cinema piece. The early films featured Pan-am Airlines and smith and Wesson firearms. The early films feature tie-ins with popular companies like Pan-Am Airlines and Smith and Wesson firearms. The iconic cigar that Bond fashioned is also a very popular brand placement. It is reported that Lark Cigarettes paid as much as $350,000 to feature their brand of cigarettes in Licence to Kill. Besides the aforementioned brands, some of the other popular brands to be associated with the franchise are Microsoft, Gillette, Playboy, Toblerone, 7Up, and KFC.

    James Bond with an Aston Martin

    Even after we have talked about so much brand placement in the movie, we can still remember the iconic ride of James Bond. It was the luxury car brand Aston Martin that was honoured with bond’s feet on their product. Aston Martin, the luxury car brand jumped at an opportunity to be associated with the British spy. Starting from Goldfinger in 1964, this partnership has endured the test of time.

    Benefits of Product Placement

    Why does this happen? Why do brands want to create a persona of a famous/popular actor using a brand product as an advertisement in product placement? This is a legit question and it has to be answered.

    Social Proof

    Social proof is a real thing in the marketing world. It is a social and psychological trick that business people use. Social proof means that people tend to believe whatever fellow people are using without a rationale. That clearly means that if you watch a crowd do a certain behaviour with a certain product, then you are most likely to follow the trend without asking for a reason or a why.

    For a quick example, we can take the case of Redbull. Redbull is a carbonated drink maker and the company sells by packaging it as a power drink. The company knew the phenomena of social proof and its drinks were not famous among the masses in India. So what they did was they threw empty cans of Redbull outside every club and pub. This little activity added a lot of value to the brand red bull and made its revenue very high. What the ‘little hack’ did was it took the value proposition of red bull and made it appear “cool” in society. Once it was established that people “who visit clubs and pubs drink red bull”, then everyone started mimicking the behaviour by actually drinking red bull. This small trick can do wonders without even letting people think about what they are actually doing.

    Indirect But Subconsciously Strong

    As we mentioned before in the article, these types of advertisements are silent and much more effective than regular ones. It is quite evident from the society that we live in. We are most probably a collectivist society and we love to have status to show off. If we see a movie star do something, we are most likely to mimic it. This raises questions about whether brands can pay movie makers to make them do certain activities.

    If code is something that scripts machines then it can be clearly said that media is something that scripts human beings. Balaji Srinivasan said in a report that he shared on Twitter that media is what scripts human beings. It is thus, whoever controls the media, controls the mind or can control the mind. Media here is any sort of media, it can be print media, a film, a piece of content on youtube, or anything that can hold attention for a significant amount of time.

    Wayne’s world super product placements.

    Problems with Product Placement

    Imagine being a trusted brand and then losing all the trust that you generated from all the years of hard work. That is so bad but most easy to happen. Imagine cinema and over-the-top content giants selling screen time to brands for product placements. This little rash on the smooth road to great revenues can derail the growth train. People could just boycott anything that feels like backstabbing.

    When we watch a movie we don’t think or expect that we will be interrupted by an advertisement or a brand showcasing their product. We go to theatres carefree as we pay for that sort of entertainment. If moviemakers dilute this excitement for us by including ads in the movie then it can most likely spoil the mood of many cinephiles.

    However, Netflix clearly mentions that it does not allow brands to show anything or any sort of advertisements on their show, there are many unnoticed instances of them being caught with product placement. Well, according to the reports, Netflix one hundred per cent refuses the question of “Product placement”, and they will never cheat the paying user base. As we know that Netflix is a paid or subscription-based platform and if its users find it selling advertisements to them, this can lead to a huge slowdown. The company always says that it supports and protects user rights and works with dignity, no brand has ever paid anything to Netflix for any sort of product placement.

    Conclusion

    We know that product placement is a very bumpy ride and can be a huge interruption for a movie or series fan. Moviemakers know it very well. However, if done smoothly and carefully, it will go unnoticed by the audience and it will also make revenue for the brand. Thus, product placement in movies or series can do wonders for a brand, if done correctly.

    FAQ

    Which TV show has the most product placement?

    A study conducted in early 2022 found that the U.S. version of “The Office” was the TV show with the highest number of product placements worldwide.

    Does Netflix use product placement?

    Since Netflix doesn’t sell advertising, the most common way that brands get into Netflix originals is through product placement. Brands and agencies work directly with the productions to place products in Netflix shows, similar to other streaming shows.

    Does Coca-Cola use product placement?

    Coca-Cola is one of the most visible brands in Movies and TV. Coca-Cola has a relatively long list of product placement appearances. One of its most obvious plugs is in American Idol, one of the most popular shows on American television that hosts a competition to find new solo singing talents.

    What are the 3 types of product placement?

    There are many ways of using product placement on TV: it can be physical, virtual, seen but not used, mentioned, contextual or even unbranded.

  • How Amazon Ads Are Killing Facebook Ads?

    Nicole Perrin, Principal Analyst at research firm eMarketer made an observation, “The pandemic zapped us two years into the future on the e-commerce side.” The pandemic and its disastrous effect on the economy in 2020, forced companies to take a long and hard look at their advertising plans and platforms.

    This was proven with the increase in the global digital marketing valuation from USD 290 billion in 2019 to USD 305 billion in 2020. This growth is expected to further expand at a CAGR of 17.6% to reach an estimated valuation of USD 807 billion by 2026.

    The reason for the quick rise of the digital marketing industry is the increasing penetration of the internet, smart devices and the increasing prevalence of social media platforms.

    By 2020, the three giant tech companies, Amazon, Facebook and Google dominated the digital advertising sectors and the pandemic catapulted them into command positions of the entire advertising economy. According to GroupM’s provisional report, they collected the majority of all ad spending in the US in that year. Ad industry veteran, Tim Armstrong said – “These companies that are data-science-driven get stronger and faster with a tailwind of usage—and Covid was a hurricane.”

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    Amazon’s Rise in Digital Advertisements
    Reasons Why Amazon Ads Are Better Than Facebook Ads

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    Triopoly Comparison – Amazon, Facebook and Google

    The pandemic and the restarting of the economy in the year 2020 actually helped interactive advertising. This was visible in the quarterly financial announcements of the three big tech giants.

    Alphabet, Google’s parent company, reported USD 55.3 billion in revenue for the March quarter of 2021, which was a 46% rise from the March quarter of 2020. The revenue of Facebook, almost completely from advertisements, was USD 26.17 billion in 2021, a 48% increase from the same quarter in 2020. Amazon’s much lower profile advertisement business showed maximum and the fastest growth of 77% from the March 2020 quarter. It reported a revenue of USD 6.9 billion in the first quarter of 2021. Amazon’s stunning growth is attributable to its horde of purchasing data, and it is now challenging Facebook’s advertisement revenue.


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    Amazon’s Rise in Digital Advertisements

    Amazon's Share of Digital Advertising Revenue Worldwide (2020-2026)
    Amazon’s Share of Digital Advertising Revenue Worldwide (2020-2026)

    Amazon began its advertisement business by offering display and search advertisements on its site. With time, the company added more ad products, with the result that its offering now resembles more to that of Facebook.

    Brian Olsavsky, Amazon’s CFO, said in an interview that the company’s ad business profited tremendously from an increase in traffic during the pandemic. The company’s technology for delivering relevant ads is attracting attention.

    Compared to Facebook, which understands product interest based on what its users socialize about and the sites they visit, Amazon’s real-time data is based on what people actually buy. This, in itself, is the best predictor of future product interest and is very attractive to advertisers. This is also a big reason for Amazon’s digital advertisement growth, which shows every sign of growing steadily in the coming years.


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    Reasons Why Amazon Ads Are Better Than Facebook Ads

    Products Offered by Amazon Ads
    Products Offered by Amazon Ads 

    By 2019, Facebook had emerged as one of the largest platforms for eCommerce marketing. As time went on, however, and the world of digital advertising advanced further, advertisers realised that Facebook’s audience-targeting metrics lacked focus as many of its users were exposed to advertisements completely irrelevant to their interests. Contrarily, visitors to Amazon had specific needs for which they were shopping.

    There are compelling reasons for advertisers to begin shifting focus from Facebook Ads to Amazon Ads.

    Ready to Buy Audience

    More than 50% of online shoppers begin their product search on Amazon. The likelihood of that search converting to an actual sale is far more possible than on sites like Facebook or Google. Placing advertisements on Amazon is doing more than building brand awareness. It is the strategic time when users are ready to make a purchase, greatly increasing the chance of a sale.

    Improvement in Organic Listings on Amazon

    Sales volume on Amazon plays a significant role in the organic listing of products. The better a product sells, the higher are its chances of a priority listing when a search is initiated for a relevant product. For eCommerce brands, this is essential as, over time, it can have a snowball effect on sales. Comparatively, Facebook advertisements do not deliver this kind of direct benefit or boost when the marketing campaign ends.

    Amazon Ads Enjoy a Higher Trust Factor

    The product reviews that customers leave on Amazon have proven to be extremely influential. Qualtrics data reveals that 93% of customers check for product reviews before making a purchase. Sponsored Product Ads on Amazon are also more popular as they list the product as part of a user’s search result complete with a star rating. Reviews on a Facebook eCommerce advertisement are a part of the ad copy, and consequently, enjoy a lesser trust factor than Amazon’s reviews, which are left by actual customers.

    More Advertisement Variety to Experiment

    A Sponsored Product Advertisement, while very attractive, is not the only option for an Amazon ad. Sponsored Brand Ads, previously known as Headline Ads, usually appear above or below the search results, which advertise the brand or its latest product offering. Clicking on these advertisements takes the user to a custom landing page, gaining greater exposure to the business and its products.

    Another unique option that Amazon Ads offers is Product Display Ads. These ads are usually displayed on the customer review page or as a ‘related product’ suggestion. These ads can generate a high revenue keeping the brand and company one step ahead of the competition. In comparison, Facebook ads are available in fewer formats and do not offer any other value-added services.

    Conclusion

    Amazon Ads offer various advertisement options that help eCommerce businesses and brands with many combinations for increasing sales. Even more importantly, these ads are dependent on keyword metrics rather than audience metrics. Hence, there is a greater possibility that the advertisement appears before relevant users, increasing the chances of an actual sale.

    In a world that is competitive and increasingly digitized, these shifts in the way products are now advertised can have a huge impact on revenues. Amazon seems to have got the combination right. Currently, Amazon Ads are offering a far greater value proposition to advertisers than Facebook.

    FAQs

    What are Amazon ads?

    Amazon ads are based on a pay-per-click model just like ads on Google. The sellers pay when a visitor clicks on the ad, irrespective of whether they make a purchase or not.

    How much does it cost to run ads on Amazon?

    Most of the sponsored products, sponsored brands, and sponsored display are pay-per-click ads. This gives you the flexibility to set your own budget regarding how much you want to pay for a click.

    Why are advertisers shifting focus from Facebook ads to Amazon ads?

    The following are some of the reasons why advertisers are shifting their focus from Facebook ads to Amazon ads:

    • Ready to Buy Audience
    • Improvement in Organic Listings on Amazon
    • Amazon Ads Enjoy a Higher Trust Factor
    • More Advertisement Variety to Experiment

    What are the types of Amazon ads?

    The following are the most popular types of Amazon ads:

    • Sponsored Product Advertisement
    • Sponsored Brand Ads
    • Product Display Ads
    • Audio Ads
    • Video Ads
    • Custom Advertising

    What is the worth of digital advertising spending worldwide?

    According to Statista, digital advertising spending worldwide was calculated to be worth USD 521.02 billion in 2021 and the number is expected to grow to USD 876 billion by 2026.