- 94% Of marketers believe that audiences will continue to move away from AD supported TV and to Subscription services like Netflix and Hulu.
- 86% Also believe that Brand integration is an effective way to reach their target audiences, especially on those platforms.
As audiences continue to move away from AD -supported content the more important it is to integrate brands into relevant content in order to tell your story and connect with the right audiences in an appealing and emotional way.
Whether it be streaming services, theatrical release or even music videos AMG has relationships with Studios, content creators, and producers to assist with placing your brand in the right project for your needs. So, if you’re seeing a logo in any film medium chances are very good it was paid for in some way.
Depending on the medium, prices can range from the very reasonable to the almost ridiculous. For example: Heineken is rumored to have payed around 45 Million to James Bond producers for Daniel Craig to take a swig of Heineken, replacing “shaken not stirred”. In that same category Harley Davidson is rumored to have paid close to ten million for the Avengers for using their new Livewire motorcycle.
It’s no surprise that if you’re not Heineken or Harley, this is usually where marketers stop looking at product placement opportunities for their brand. Although it’s not for every brand and budget, there are infinite opportunities to explore, that will be budget-friendly and still provide a tremendous value.
Assigning value to placement or brand integration is not an exact science because there are so many variables that must be considered, making each project and brand inquiry completely unique. From content creators, writers, director’s distributor limitations, cast allowances and of course, storyline.
With most placement the highest bidder is typically the winner, however it is important to understand that ultimately the creators and even the cast can have a say in a brand placement and that is often based on familiarity of the brand and how the brand integrates into the story and feel of the production.
In some cases a product in exchange can get even more exposure than the biggest paid partner because of the storyline, relevancy and need by production.
Major Factors that contribute price:
- Cable TV, Network TV, or SVOD (streaming Video On Demand) Film or Music video.
- The cast? The director? What big names are associated that help drive the cost.
- How big an audience is expected? Is this based on historical evidence from previous seasons or franchise hits?
- What and how big a placement opportunity will it be? Hands on? Verbal mention? Or just a background product shot?
- Is the category competitive?
One of the major components to getting a deal is how the onset decision makers feel about your brand. Many brands miss the opportunity of product placement – where relationships and familiarity drive the opportunity. We are an integral part of making the cast, producers, and writers understand the fit with the story and make sure that the integration will not interfere with the art and creative direction of their vision.
You want the decision maker to think the partnership is a fit. And not have to climb a mountain trying to sell it in as one.
Product Placement Options
Feature Films have traditionally not used product placement as means to generate revenue, and instead used product placement based on trade and loan of goods based on need and the desire to reduce cost to the budget.
In recent years that has begun to change with, especially with big blockbuster films. With bidding wars to be in The Transformers in the high six and low 7 figures, the studios have woken up and taken notice that there are indeed brands willing to pay to be in the content.
One of the major issues we always discuss with clients especially on films that require a high cost of entry, is the more on-screen time and brand integration featured, the more prepared you have to be to have content cut before final edit- there are no guarantees until final edit.
While the dollars are always refundable, it’s tough regardless.
Music videos are a great and cost-effective way to get brand integration. For under Depending on the artist’s popularity – a brand can be featured in a music video for considerably less than a major theatrical release. Most artists have starting fees under six figures for the placement partnership and the brand can also create a social media layover campaign where the artists posts about the brand.
The brand can build out a program where tickets to the artist’s next concert or other memorabilia is offered up as a sweepstakes.
Music Videos offer brands the ability to start slowly working with an artist and building a relationship that may result in a major celebrity endorsement. Cost can range from $25k to 250k for a massive integration with a top artist.
Streaming Video On Demand (SVOD) operates similarly to the cable TV networks, as there are no advertisers to compete with. Netflix itself won’t take dollars, but many of their content creators will use funds to help offset their own production costs. Hulu and Amazon Prime act similarly. And again, these platforms are great for product placment – as anything in trade or loan helps offset bottom dollar production costs. Costs can range anywhere from $25k to $500k+.