If it were a made-for-TV movie, it might be called Invasion of
the Advertisers.
With audiences for network television shrinking, and more viewers
zapping through commercials on recorded TV, some of the industry's
most powerful advertisers are securing roles for their products
inside prime-time sitcoms and dramas, once considered off limits for
such overt promotions.
"Traditional commercials resonate better when they accompany
products placed within a show," says Jeff Bell, vice president of
marketing for Chrysler and Jeep at Chrysler Group, a unit of
DaimlerChrysler AG.
Forms of product placement have been around almost as long as TV
advertising itself, but the practice has been limited largely to
sports telecasts, live entertainment and, more recently, reality
shows and soap operas -- not the blue-chip scripted shows that are
among the most valuable real estate on TV.
But even those shows are no longer sacrosanct, on some networks.
In the current season, for example, Ford Motor Co.'s vehicles have
been featured on 24, the acclaimed action drama on News
Corp.'s Fox. And a shiny, orange Beetle convertible from Volkswagen
AG had a big role in the teen superhero drama Smallville on
Time Warner's WB network last year.
NBC, the No. 1 network among 18-to-49-year-old viewers
(advertisers' most sought-after group), is grappling with how much
content territory to cede to marketers. NBC rejected a lucrative
deal involving marketers including Ford's Lincoln Mercury and Sony
Corp.'s Sony Electronics for its glitzy new drama Las Vegas
last year. According to people familiar with the matter, the network
was leery of offending traditional advertisers. NBC says it passed
on the idea "for creative reasons."
"We continue to explore the value," of product placement in
scripted comedies and dramas, says Marianne Gambelli, executive vice
president overseeing prime-time ad sales for the network. "How do
you make it work? Where does it fit in? Where doesn't it fit in? How
do you make it organic?"
CBS and UPN also are charting their way. So far, they haven't
directly placed advertisers' brands or logos into prime-time fare.
CBS says it remains open to product placement on scripted shows.
The networks aren't the only ones that make such deals. Familiar
brands often pop up in prime time not as part of network-advertising
deals but as the result of behind-the-scenes maneuverings of
so-called product-placement shops. These tiny, discreet outfits
maintain close ties with prop masters, set designers and executives
at production studios and use their connections to get advertisers'
branded products -- from handbags to computers -- in front of the
camera on TV's hottest shows.
In June, AIM Productions, a New York product-placement concern,
got Unilever PLC's Ragu Express, a packaged pasta-and-sauce meal, an
eye-catching role on Everybody Loves Raymond on Viacom's CBS;
in the episode, Ray stalked his wife in a supermarket and knocked
over an entire display of the product. AIM also got Interbrew SA's
Rolling Rock beer a gig on Ed, on General Electric Co.'s NBC
in October. Another placement firm, Norm Marshal & Associates,
got Microsoft Corp.'s Xbox game machine onto CBS' Two and a Half
Men in September. It also helped arrange the ongoing appearances
of General Motors Corp.'s Hummer H2 in episodes of CBS' CSI:
Miami.
Advertisers themselves -- not their ad agencies -- generally keep
product-placement companies on retainers ranging from $20,000 to
$100,000 a year, says Patricia Ganguzza, president of AIM
Productions, which counts Unilever and Kraft Foods as clients.
Watchdog groups have long decried product placements for blurring
the line between content and advertising without adequately
informing viewers. And the networks themselves appear to be divided
on how far they want to open the gate. "You've got to wonder when it
starts to destroy the entertainment value," asks Tom Wolzien, a
former television executive who is senior media analyst for
investment research firm Sanford C. Bernstein & Co.
In some instances, placements are extremely subtle. For example,
Euro RSCG MVBMS Partners, an ad agency owned by Havas SA and working
for client Polaroid, handed cameras to the band OutKast, whose hit
song Hey Ya includes the lyrics, "Shake it like a Polaroid
picture."
According to Ron Berger, the ad firm's chief executive, the
cameras have appeared with the band on NBC's Saturday Night
Live and the Vibe Awards on Viacom's UPN. "It's like
advertising," says Mr. Berger. "If it's done very well, it's great.
If it's done badly, it's horrible."
When it comes to reality shows and soap operas, the networks have
welcomed product placement. NBC recently agreed with DaimlerChrysler
to weave a Chrysler automobile into The Apprentice, a reality
show about a competition to become Donald Trump's protege. And
Procter & Gamble Co. products are set to appear on CBS'
Survivor: All-Stars.
Last year, Avon Products' Mark cosmetics line, aimed at young
women, got a prominent role on the NBC soap opera Passions. A
young female character became a Mark representative and talked up
the brand. CBS, meanwhile, approved a deal weaving Butterball
turkeys into storylines on As The World Turns and Guiding
Light near Thanksgiving.
WB, Fox and Walt Disney Co.'s ABC say they examine product
placements on a case-by-case basis. "There are do's and don'ts, and
they are evolving," says Bill Morningstar, executive vice president
of media sales at the WB network.
AIM Productions' Ganguzza expects to see more placement deals
involving prime-time dramas and comedies. "The brands hold the
reins, and the networks realize that marketers have started shifting
more dollars into nontraditional media, including product placement,
because of its sexy appeal," she says.