Product placement, its supporters and detractors: A quest for balance

Purpose: This chapter takes a wider approach to the increasingly popular advertising tool of Product Placement (PP), discussing the tool, its usage and the consequences of its usage both from a marketing and a consumer welfare perspective. It also tries to balance these contradictory perspectives to achieve a common and positive ground for all stakeholders. Methodology/approach: A literature review of PP research findings from both a marketing and public policy perspective is used to arrive at a more balanced viewpoint on PP. Practical implications: Marketers are advised not to fight against regulations for PP, but rather develop their creativity to avoid consumers rejecting the disclosed placement. Public policy makers are recommended to improve the current regulations in terms of disclosure and media types (that would be consistent wherever the program is produced or broadcasted) in order to help consumers to become savvier. Social implications: We address consumers’ ability to raise a protective shield in a PP situation. More specifically, we explain how certain disclosures may work better than others to inform about the commercial intent of PP and as such, will empower consumers to manage their own behavioral decisions. Then, we describe how PP can be used to educate consumers about prosocial issues in an entertaining, non-patronizing way. Originality/value of paper: This chapter proposes to go beyond the usual divide between advertisers and policy makers and to balance those views, considering the positive role that PP may play in education while its potential negative impacts could be alleviated through effective training of consumers.The advertising industry has undergone a rapid transformation in recent years. New communication technologies such as live streaming, gaming, social media, online brand communities and blogs have given advertisers new platforms to communicate and promote their messages. Two remarkable phenomena are apparent, often in combination: interactivity in online communication; and integration of editorial and commercial content. Academic research is increasingly focusing upon these new techniques and formats, how they work, and how consumers are affected by or respond to them. This book makes an important contribution to the field of advertising by bringing together state-of-the-art insights with an examination of how the techniques work. The book is split into three sections: The Changing Advertising Universe; Advertising in a Digital Connected World; and Hidden but Paid for: Branded Content. The book provides conceptual overviews, discusses recent academic literature, reports new research, and develops viewpoints on the key issues. Together, it provides a valuable overview of insights into modern advertising practice for advertising academics and practitioners alike