The Economics of Product Placements

A fascinating look at the world of product placements, with suitably detailed numbers.

“Given that kind of upside, we’d expect the costs to be high. But in comparison to TV, print, radio, and other media advertisements, they’re surprisingly inexpensive. Hershey spent only $1 million on its iconic E.T. placement. BMW spent a reported $3 million integrating its Z3 into the 1995 Bond film Goldeneye – then saw a $240 million lift in sales of the model as a direct result of the placement. These days, the stakes are much higher; integrations into multiple episodes of primetime TV series can run $3 to $10 million, and full-series deals can exceed $50 million. Brands are increasingly dropping tens of millions on movie integrations.”

 

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