INTRODUCTION
“The Worth of Product Placement in Successful Films: An Event Study Analysis” is a July 2009 article in the Journal of Marketing written by Michael A. Wiles and Anna Danielova. The article discusses the findings of an event study constructed to show the relationship of high grossing films of 2002 with the participating firms’ stock prices.
HYPOTHESES
The researchers discuss results from past research from other scholars. From their study of previous findings, the researchers derive six hypotheses.
H1: Film product placement is positively associated with a change in firm market value. (Wiles & Danielova, 2009, pg. 46)
The hypothesis of the researchers implies a general belief that product placement in high grossing films will indeed generate increases in firms stock. The researchers believe that other factors in the film also influence the situation. These factors include: Tie-in advertising, brand equity, audience absorption, critical acclaim, and film violence. From these factors, the other hypotheses are generated.
Promotion of the product in the movie, before the film’s actual release, increases the familiarity of the product and the likelihood that the viewer will recognize the product while viewing. This recognition causes the viewer to begin to relate subconsciously the product with the film. In addition, this form of advertising shows that the firm trusts the film enough to be associated with the film. This is an investment to the product and the film. The researchers believe that this seems to have a positive impact on the value of the product leading to hypothesis two:
H2: The worth of product placement in successful films is positively related to the presence of tie-in advertising. (Wiles & Da...
... middle of paper ...
...fect prices, as there are very few buyers or sellers in the market at the time for whatever reason.
CONCLUSION
The researchers were able to hypothesize accurately the outcomes of their findings. The predictions included that there existed a positive correlation among a firm’s stock price and the success of a film, brand equity of the product, and tie-in advertising; and a negative correlation between violence, critical acclaim, and film absorption.
The researchers provided strong support in their findings to prove their hypotheses. It was shown that there is value in product placement. However, circumstances surrounding that placement may greatly influence the significance of the return.
Works Cited
Wiles, M. A., & Danielova, A. (2009). “The Worth of Product Placement in Successful Films: An Event Study Analysis”. Journal of Marketing, 73(July), 44-63.
...s, B. M., and W. Stroebe. (2010) “Setting the stage.” The Psychology of Advertising. East Sussex: Psychology, Print.
Movies today are extremely expensive to make and are typically financed through either film studio contracts or from investors willing to take a risk. In order to be successful, movies need to be marketed and distributed either under contract by the film studios or by companies that specialize in such services. The aspects of financing, marketing and distribution of films have changed between the studio and independent systems over the years as the evolution of the film industry took place.
As can be seen in exhibit to solution 2, we have estimated the per-film value of each production company. MCA Universal, Warner Brothers and Walt Disney Co are the only production companies that provide a positive per film value, with values of 9.89, 1.92, 12.56 million respectively. This value is calculated by dividing the net present value of all the movies by the total number of movies. We also calculated the average value of each production company based upon their share of the total number of movies produced. The companies with positive values were MCA Universal, Warner Brothers and Walt Disney Co is also the only production companies that provide a positive per film value, with values of 1.40, 0.37, 1.40 million respectively. These values are based on the average value per film multiplied by the company's average share of the industry.
During the 2016 Super Bowl, companies paid approximately $5 million for a 30-second commercial, according to CBS (Ourand, 2015). With this type of investment, it is important for companies to strategically consider how to relay messages to consumers in a meaningful way. However, even a hefty investment will result in a very low increase of sales (Clow & Baack, 2016). Visual advertising results in better message delivery than other forms of advertising for larger companies with a creative mix of strategy, source, appeal, and execution shown in Table 1. The results of a creative mix promote customer loyalty, acquisition, and increased product exposure. Successful messaging assists in potential
Among the film companies Kodak had the highest market share with 70%, far beyond companies like Fuji (11 %) and Polaroid (4 %) as well as private label (10 %) and other (5 %). (Exhibit "Market Share") However, Fuji´s global sales of $10 billion made it half Kodak´s size. Even though Kodak was the dominating brand, it faced the problem of a 6% decline in market share within the last five years and a 3% drop in sales in the last year. At the same time, Fuji´s and Polaroid´s sales grew more than 15% in the past year. This is closely linked to the four price tiers in the film market, namely, Superpremium brands, Premium brands, Economy brands and price brands. With prices ranging from $4,27 to $4.69 Fuji and Kodak are positioning themselves in the high price segment through their superpremi...
To encourage a point-of-view regarding the role of cross-promotions and movie product placements both within the marketing mix, and as elements of new product launch activities
In this essay I will look at the Film Company and distributor Universal Studios, also known as Universal Pictures. I will analyse the logo, branding, and marketing within the corporate company. Overview of Universal Studios. With a long history in the film making industry, Universal Studios is the largest film studio in the world, with 9000 employee’s. The company produced ‘ET: The Extra Terrestrial’ and ‘Jurassic Park’ which are two of the highest grossing movies of all time.
In many ways, James Cameron’s Avatar closely resembles the common, safe “top-echelon” blockbuster described by David A. Cook in “Formative Industry Trends” (347). The film is definitely high concept; the plot is simple and easy to describe, is multi-genre, and relies on spectacle. It also featured saturation marketing, as was described by Jesse Algeron Rhines in “Blockbusters and Independents: 1975 to the Present” (414). There are Avatar books, video games, action figures, postage stamps, and even a future theme park (Cody). Marketing helped Avatar do exceedingly well in the box office, which is one requirement of a blockbuster according to Thomas Schatz in “The New Hollywood” (371).
Aaker, D. A., Kumar, V., & Day, G. S. (2007). Marketing Research (9th ed.). Hoboken, NJ: John Wiley & Sons.
Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Essentials of marketing (6th ed.). Cincinnati, Ohio: South-Western College Pub..
Etzel, Michael J., Stanton, Bruce J., Stanton, William J. (2004). Marketing. (13th ed.). Boston: McGraw-Hill.
Over the years, Bollywood has emerged as its own distinct identity in the global film industry. Bollywood is the global leader in production of movies with a staggering 27,000 featured films and thousands of short films. (Pillania 1) However, Hollywood is still the leader in revenue generated. Due to the growth of the Indian market and globalization, Bollywood has made its way to the international markets.
Movie production is a highly admired visual entertainment towards people’s lives. It is a form of entertainment for people of all race, gender, and age. Many seek to take part in the luxury qualities of this entertainment including advertisers. These advertisers of many thriving companies such as Nike, Domino’s Pizza, Adidas, Coca Cola, etc. are prominently promoting their products towards the audience through movie productions. Therefore, the term of their action of promoting the goods of their own company is called product placement. Product placement is to help promote a quality brand to a viewer’s appeal that helps not only have the consumer to purchase, but to also increase the marketing of that company.
film can make or break a movie. Marketing a film takes up a great deal of the money that is
Young, A. F; Young, R. (2008). Measuring the Effects of Film and Television on Tourism to Screen Locations: A Theoretical and Empirical Perspective. Journal of Travel & Tourism Marketing, 24, (2-3), 195-212.