Product Placements Global Scan

TABLE OF CONTENTS

Product Placement on TV ( Indian / International )

Evaluation of Product Placement

Case study

Product Placement in Films ( Indian / International )

Product Placements • Industry Overview • Definition • Advantages / Forms / Why placements? / Types

Product Placements • Industry Overview • Definition • Advantages / Forms / Why placements? / Types

• Television placement spending, the largest media segment, rose 30 percent to

WHAT IS PRODUCT PLACEMENT?

• Product placement is a promotional tactic used by marketers in which a real commercial

PRODUCT PLACEMENT INDUSTRY

• The net worth of the overall product placement market in 2004 was $3,460 million as compared to $2,400 million in 2003 ie an increase of 30.5 %. This is as per a study published by PQ Media.

• Product placement market – compound annual growth rate of 16.3% from

1999-2004.

• The value of television product placements increased to $1,870 million in 2004.( increase of 46.4 %). It grew at an annual compound rate of 21.5% from 1999-2004.

• In films the value of product placements rose to $1,260 million in 2004, (increase of

14.6%)

• Product placement grew at a compound annual rate of 11.4% in the 1999-2004 period.

• Product placement spending in other media increased to $325.8 million in 2004,(

increase of 19.9%) and grew at a compound annual rate of 11.7% from 1999-2004.

• Another key trend in product placement is the growth of paid integrations compared with barter and gratis placements.

Share of paid placements (%age)

1974, 192004, 29

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1

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$2,440 million in 2005, while film placement rose 13 percent to $1,420 million , with other media seeing an increase of 18.1 percent to $384.9 million.

product is used in fictional media, and the presence of the product is a result of an economic exchange.

• Product placement is an advertising technique In which companies pay a fee or provide

services in exchange for a prominent display of their products.

• When featuring a product is not part of an economic exchange, it is called a product plug.

• Product placement appears in plays, film, television series, music videos, video-games

and books. • Product placement occurs with the inclusion of a brand's logo, or a favorable mention or

appearance of a product.

• The most common form of product placement is movie and television placements and more recently video games.

ADVANTAGES OF PRODUCT PLACEMENT

• The viewer can’t ignore the placement without missing the plot in films. • Films reach a global audience; more people are going to the cinema and renting or

buying videotapes and DVDs (Digital Video Disks), thus increasing the audience.

• People can also see the product in use, usually by a celebrity, giving the product some sort of status and an endorsement.

• More and more companies are using product placement because "traditional" advertising

is becoming less and less effective.

• With new technology such as digital video recorders, viewers now do not have to sit through commercials.

• Product placement is a way for advertisers to break down the wall between television

shows and commercials and to become part of the environment of the show. FORMS OF PRODUCT PLACEMENTS

• The most basic form of product placement is the inclusion of a product name or logo

in the foreground or background of a scene. • Payments are based on exposure, including the number of times the product is

shown or mentioned, the duration of that exposure, and the degree of inclusion of the product in the story line.

• Sometimes product usage is negotiated rather than paid for.

• Some placements provide productions with below-the-line savings, with products

such as props, clothes and cars being loaned for the production's use, thereby saving them purchase or rental fees.

• Barter system & service deals are also common examples.

TYPES OF PRODUCT PLACEMENT

• Passive product placement – A passive product placement is on in which the product is shown either in the background or in the foreground. The Brand per se is not part of the storyline or plot.

• Active product placement – An active placement is one in which the brand is just not present in the background or foreground, but the actor touches the product or provides an auditory mention. There is contextuality in its presence.

• Hyperactive product placement – A hyperactive placement is one in which the brand is not just present in the show , but the brand ambassadors (or the actors or host) use & refer to it blatantly. Eg: Pepsi launched its new product Pepsi Cafechino on Sony’s Indian Idol. Its brand ambassadors Kareena Kapoor & Priyanka Chopra appeared on the show wearing the same clothes they had worn in the ad. They proceeded to hold the bottle, raise it, refer to it, drink it and talk about it!

Product Placement on TV ( Indian / International )

PRODUCT PLACEMENT ON TELEVISION

• On television it is often referred to as PRODUCT INTEGRATION. • This process has to share its advertising space with traditional advertising also known as

the 30-second spot. • The main reason to have product placements on TV is to get maximum coverage.

EXAMPLES OF INDIAN PLACEMENTS ON TELEVISION

• ICICI cheques placed prominently in KBC- Active placement

• Sony’s DEAL YA NO DEAL featuring CHLORMINT – Active & Passive placement

• DIAL ONE AUR JEETO: Passive placement

In this game there is a host of prizes in the form of household goods and jewellery. These brands get visibility throughout the 20-25 minutes episode. This includes brands like D’Damas, TCL television, LORD home appliances.

• INDIAN IDOL 1 and REJOICE SHAMPOO – Passive placement .

• INDIAN IDOL 2 and PEPSI CAFECHINO – Hyper Active placement

• L’OREAL on JASSI JASI KOI NAHI – Active placement

• DAIRY MILK plugged across five Star Plus serials on New Year's Eve. The CDM pack was projected as a new year's gift idea with Mrinal Kulkarni of Sonpari and Smriti Irani (Tulsi) of Kyunki Saas Bhi Kabhi Bahu Thi being shown gifting CDM packs on the occasion. The brand notched a 10-25 second exposure per serial across all the Star Plus series'.

• KODAK moment on Jeena Isi Ka Naam Hai –Passive placement

• MTV Roadies is the only program on the channel that shows the sponsor Hero Honda's bikes throughout the show. During the month of May 2005, Hero Honda announced auditions for Hero Honda MTV Roadies- 3, a reality show that the company has been associated with for the last two years. : The company sold 2, 26,072 bikes in May 2005.This figure was achieved despite supply constraints.

INTERNATIONAL TV PLACEMENTS

• ALL MY CHILDREN- REVLON

The famous cosmetics company REVLON was placed in this TV show. ; Revlon reportedly paid between $3 million and $7 million to be featured in show.

• AMERICAN IDOL – Coca Cola is an Active placement

Coca-Cola, AT&T Wireless, Old Navy and Ford are some of the brands and products clearly evident in each episode of American Idol. These companies have reportedly dished out $ 26 million per integration/sponsorship deal. The show had an average of 83.3 product occurrences per show. Coke appeared over 2000 times and AT$T appeared 340 times and ford was more than 120 times in the 2004 season. Being the number one rated show in the United States, it costs around $ 7,05000 for a 30 second commercial.

• EXTREME MAKEOVER- HOME EDITION- This show had a total of 3318 occurrences in 73 telecasts for an average of 45.5 product occurrences

• THE SURVIVOR – The winner was given a $500 online shopping spree using a Visa

Card. Product placement spots were being sold for $1 million for the first season of Survivor. By the time the second series was being prepared the cost had jumped to $12 million. The show also consisted of Budweiser, Cingular, Coors, Doritos, Dr Scholl, Frito-Lay, GMC, Mountain Dew, Reebok, Sierra Mist soft drinks, Saturn cars and Target.

• THE CONTENDER This show consisted of 7514 placements. There were a total of 15

telecasts and each episode had an average of 500.9 products placed in it.

• NO BOUNDARIES - Ford paid roughly half the $500,000 an episode that No Boundaries cost to produce. Source : ( www.lycos.com )

Link :(http://members.lycos.co.uk/brisray/misc/mprodplac.htm )

• WILL & GRACE – Polo T shirt – Active placement

Source: ( www.lycos.uk ) link:(http://members.lycos.co.uk/brisray/misc/mprodplac.htm ) The show featured one of the actresses wearing a Polo brand shirt. Viewers were invited to buy the shirt at $52, $15 from every sale would go to “support programs dedicated to raising cancer awareness.” A spokesman said that no money exchanged hands. Five days later 5,000 shirts had been sold, raising $45,000 for cancer awareness. Polo is 50% owned by NBC, who no doubt claimed their share of the remaining $110,000.

SOME GENERAL PLACEMENTS • APPRENTICE

• DREW CAREY SHOW - Ramada & VW Beetle

• SEINFELD - Coca Cola, Heinz, Junior Mints & Snapple

• SEX AND THE CITY – Apple- Passive placement, Heineken

• THE AMAZING RACE - American Airlines

• THE SOPRANOS - Heineken, Mercedes Benz

Product Placement in Films ( Indian / International )

PRODUCT PLACEMENT IN FILMS

• Product placement in movies is the best way to get brands noticed as the target

audience in this case is extremely huge and movies have a greater scope for coverage & a wide distribution network.

• Film is also able to reach out and touch a global audience in a way that TV programming

is just too provincial to accomplish.

• Films transcend geography, class & culture barriers

• Clutter free environment • Not subject to surfing, zipping or muting ( only in cinema halls)

• Opportunities for cross promotions

• Products or brands make a movie more realistic

• It is much more easier to bond with the stranded actors when Hrithik Roshan mentions

Mc Donalds burger because that is probably what we’d say ourselves

• Monet eternally being in short supply, it is a great way to finance a film

• Film industry being unorganized, genuine above- the- board funding is hard to come by, & product placement is a golden opportunity.

• Some tie ups also help in promoting the movie.

EXAMPLES OF INDIAN FILM PLACEMENTS

• STROHS BEER APPEARANCE IN THE FILM DILWALE DULHANIA LE JAYENGE – Active placement

. American beer company Stroh's is said to have paid Rs 15 lakh to the producers of Dilwale Dulhania Le Jayenge for a 15-second scene in which Shah Rukh Khan mentions the brand name while downing a canned Stroh's. source : www.domain-b.com

link :http://www.domain-com/industry/entertainment/20030729_brand.html • BRANDS LIKE ICICI, FORD IKON, ARCHIES CARD, TIDE AND TATA TEA

APPEARED IN THE FILM BAGHBAN- Ford Ikon, ICICI Bank, Archies Cards, Tide & Tata Tea were placed in the film. . Ravi Chopra, the director of Baghban, admitted that the total benefit to the producers from associating with the brands is in the range of Rs 3-4 crore. Source : www.domain-b.com Link: http://www.domainb.com/industry/entertainment/20030729_brand.html

Mr. Chopra says that product placement helps the producers to recover costs of the film. . In any case in the films they need to show film characters driving cars, using mobiles, drinking tea or coffee and using a number of other products, so why not benefit out of it. The sponsoring company also benefits as their brands get associated with film stars." Archies cards , Tata Tea, Ford Ikon – Active placement Tide – Passive placement

• ZINGARO APPEARANCE IN JISM - Passive placement Alcobev spent Rs 15 lakh on the in-film branding exercise of Zingaro Beer in Jism.

Source : ( www.hindubusinessline.com ) Link : http://www.blonnet.com/2003/01/17/stories/2003011700620600.htm

• PASS PASS APPEARANCE IN THE FILM YAADEIN: Hyper active placement

Director Subhash Ghai earned Rs 3.5 crore out of product placements in Yaadein. Other products featured included Hero cycles and Coca-Cola. Source (http://www.rediff.com/money/2003/jul/21quiz.htm )

• TATA SUMO APPEARANCE IN THE FILM ROAD: Active placement

A special promo for Tata Safari was also created and scripted by Ram Gopal Varma Productions. Apart from the Tata Safari, which is used for the 30-second promo, the Tata Sumo is featured in a big way in the film.

• COKE’S APPEARANCE IN THE FILM TAAL: Active placement Director Subhash Ghai earned Rs 1 crore which is 20% of the production budget out of

the product placement in Taal. source ( www.iimcal.ac.in ) Link: ( http://www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP )

• SWIFT APPEARANCE IN THE FILM BUNTY AUR BABLI: Active placement

One of the promotions of Swift was to be launched in the movie Bunty aur Babli. Just three months after it launched Swift, Maruti Udyog Limited has already sold over 8,000 units of the car Source : ( www.rediff.com ) Link : (http://www.rediff.com/money/2005/jul/26maruti.htm )

• D’ DAMAS APPEARANCE IN THE FILM ANKAHEE – Active placement

In the movie Esha Deol is shown modeling for the brand. For this placement the company paid the production house 50 lakhs. (source Bhatt production house )

• COKE’s APPEARANCE IN THE FILM AAP MUGHE ACHE LAGNE LAGE - In this film

there was a placement of Coke for which the production house received 30 lakhs. This amount was decided upon because Hritik Roshan is already an ambassador for Coke and also Coke agreed to do promotions for the movie. This is the reason the amount decided upon was a lesser amount. ( source Bhatt production house)

• BARISTA IN THE FILM AITBAAR – Passive placement

Barista was shown very clearly in the movie but no payment was made for the same because the movie was financed by the Tata’s who own Barista. ( source Bhatt production house )

OTHER GENERAL EXAMPLES

• DOMINO’S PIZZA AND DIET COKE IN THE FILM LOVE KE LIYE KUCH BHI

KAREGA- Active placement

Mr. Hero strategically holds a ball with the Mac ‘M’ on it, and just when you are about to overlook the Mac connection, you see all those girls in outfits that look suspiciously like Mac uniforms. Sonali Bendre declares that she consumes nothing but Domino’s Pizza & Diet Coke. source : ( www.iimcal.ac.in ) Link: (www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP )

• MC DONALDS APPEARANCE IN THE FILM KAHO NA PYAR HAI-

Active placement. Hrithik Roshan asks Amisha Patel “ MC Donalds Ka Burger laoo kya ”

source:( www.iimcal.ac.in ) Link : ( http://www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP )

• BSA SLR BIKE APPEARANCE IN THE FILM JO JEETA WOHI SIKANDER – Active placement

• HYUNDAI SANTRO AND CASTROL engine oil appearance in the film CHALTE CHALTE

• DIAMOND TRADING COMPANY IN THE FILM BOOM - Kaizad Gustad's Boom,

released recently abroad, features 400 carats of real diamonds in its opening scene, courtesy Diamond Trading Company.

• ASMI JEWELLERS APPEARANCE IN THE FILM JOGGER’S PARK- Passive

placement

• TIMES OF INDIA AND LAYS APPEARANCE IN THE FILM HUM TUM Times of India- Active placement

• HERO HONDA APPEARANCE IN THE FILM KOI MIL GAYA - Active placement The Hero Honda Karizma was put on display as a prize for the winners of the basketball match in the film.

• THUMS UP APPEARANCE IN THE FILM KAANTE: The action film's star cast:

Amitabh Bachchan, Sanjay Dutt, Sunil Shetty, Lucky Ali, Mahesh Manjrekar and Kumar Gaurav did the tough act with Thums Up bottles in hands

• BRU APPEARANCE IN THE FILM ALAIPAYUTHEY: The coffee brand very popular in

South India was associated with promos of Alaipayuthey

• ARCHIES TOYS APPEARANCE IN THE FILM WAQT – Active placement

• RAJDOOT BIKE APPEARANCE IN THE FILM BOBBY

• BENZER STORES APPEARANCE IN PREM DIWANE: Passive placement In Prem Diwane, an entire sequence with Madhuri Dixit was shot inside the famous Benzer stores of Bombay. A lot of people unrelated to the story line are shown carrying Benzer bags. source : ( www.iimcal.ac.in ) Link : ( http://www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP )

• COKE’S APPEARANCE IN THE FILM AN EVENING IN PARIS: Active placement

In An Evening in Paris, Sharmila Tagore was seen sipping delicately from a 200 ml bottle of Coke, struggling to make sure the logo was visible. Source :( www.iimcal.ac.in ) Link :( http://www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP )

INTERNATIONAL FILM PLACEMENTS

• TOY STORY – Active placement Toy Company Slinky had sales worth $27 million after the movie release. Source : ( www.iimcal.ac.in ) link : ( http://www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP )

• THE FIRM – Active placement

Sales of Red Stripe beer increased by 53%, after Tom Cruise was seen slugging it in the film. Source : ( www.iimcal.ac.in ) Link :(http://www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP

• JAMES BOND- GOLDEN EYE – Active placement

BMW made $240 million in advance sales alone, purely due to the Golden eye. Source : ( www.iimcal.ac.in ) Link : http://www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP )

• EXTRA TERRESTIAL Reese’s Pieces – Active placement The Hershey’s candy featured in ET – saw a phenomenal sales growth of 66%. Source : ( www.iimcal.ac.in ) Link : (http://www.iimcal.ac.in/imz/imz-archive/article.asp?id=PP )

• YOU’VE GOT MAIL – Active placement

AOL reportedly received between $3 million and $6 million with added visibility for AOL's signature smiley-face logo.

• MEN IN BLACK - Ray Ban sunglasses. – Active placement

Ray-Ban reported that sales of its Predator 2 sunglasses tripled to $5 million after the y were used in the film Men in Black.

Source : ( Media Awareness Network ) http://www.media-awareness.ca/english/resources/educational/teachable_moments/word_from_our_sponsor.cfm

• MEN IN BLACK 2- Mercedes Benz – Active placement Mercedes Benz is said to have spent $40 million to have their cars be seen in the film

• JURASSIC PARK 2 – Active placement

Mercedes Benz is reputed to have spent $2 million getting their cars seen in the film. Source : (http://corporate.findlaw.com/ )

Link : (http://library.findlaw.com/2005/Feb/6/133665.html ) OTHER GENERAL EXAMPLES

• AUSTIN POWERS - Heineken Beer, AOL, Starbucks & Virgin Airlines.

• DOUBLE JEOPARDY – BMW – Active placement

• MISSION IMPOSSIBLE – Lamborghini

• TOMORROW NEVER DIES – Active placement BMW Car featuring in the movie. It also consisted of Avis, Brioni, Ericsson, Heineken, L’Oreal, Omega, Smirnoff and Visa

• I – ROBOT – Audi – Hyper Active placement

• ANASTASIA – Passive placement The Chanel Shop was shown in the movie. This was an UNPAID PLACEMENT

• TRANSPORTER 2 – Audi – Hyper Active placement

• ARMAGEDDON –Active placement

The Swiss Army brand (RayBan) also placed its logo on a pair of plot-critical remote- control specs used in the asteroid thriller. BMW was also placed in the film.

• AFRICAN QUEEN - Humphrey Bogart’s bottle of Gordon’s Dry Gin was placed in the

film. This was the first product placement seen in 1951.

• WHAT WOMEN WANT – Active placement A major part of the plot is Mel Gibson working on an advertising campaign for Nike.

• ARTIFICIAL INTELLIGENCE - Dell Computers – Active placement

• AIR FORCE ONE - Budweiser

• BATMAN - Apple, Taco Bell • BOWFINGER - Federal Express

• SCARY MOVIE - PEPSI – Active placement

• BRIDGET JONES’S DIARY - Coca Cola – Active placement

Ford & Haagen Dazs

• FINAL DESTINATION – 7 Eleven

• FORREST GUMP - Dr. Pepper

• CASTAWAY – FedEx- Hyper active placement

• MINORITY REPORT - American Express, Aquafina, Ben & Jerry’s, Bvlgari, Burger King, Gap, Guinness, Lexus, Nokia, Pepsi, Reebok, Revo, Toyota and USA Today

• THE MATRIX - Cadillac, Nokia, GM & RayBan

• THE DA VINCI CODE - BMW, Bosch, Citroen, Ericsson, Harvard University, Havoline,

Land Rover, Louvre, Mercedes, Mickey Mouse, Oxford University, Peugeot, Renault, Ritz, Rolex, Smart, Sony, Sony Vaio, Volkswagen .Rolex – Active placement

Case study

CAST AWAY – FedEx Case Study

Cast Away is a film in which Tom Hanks plays a Federal Express executive who spends four years shipwrecked on a deserted island before escaping back to civilization.

This is a fascinating case study because of the conflict between its relentless

product placement and its dark vision of contemporary global capitalism.

This has two sides to it:

1. The prominence of FedEx in the film is striking: not only is the company the hero’s employer, but the arrival of washed-ashore FedEx packages are major plot points in the movie.

2. On the other hand, the film in many ways is a fantasy of

escape from the “just in time” way of life FedEx represents.

The film’s conclusion highlights the rift between Chuck’s newfound calm & the banal frenzy of contemporary American life, then struggles to offer some sort of resolution.

As reported by a reviewer, “Cast Away is one big commercial for Federal

Express; a connoisseur of product placement in films, I have never seen more egregious campaigning for one company in a film than I witnessed in this one”

The Cast Away producers’ arrangement with FedEx, however, was not exactly

the traditional form of product placement. Director Robert Zemeckis, in fact, insists that it’s not product placement at all.

He says that they were not paid by anybody to place FedEx in the movie. He

feels that not using FedEx would compromise the whole integrity of the movie. Thus , he asked FedEx for the permission to use their logo in the film and they agreed.

On the other hand, While no placement fee was paid, FedEx supplied extensive

resources to the filmmakers, including airplanes, trucks, packages and uniforms. In addition, FedEx CEO Fred Smith was an investor in the film’s production company

Gail Christensen, MD of FedEx feels that it was more than a mere product

placement. She says that FedEx was a character in the movie.

The placement of FedEx in the movie contradicts the meaning of the movie.

1) Cast Away addresses the compression of time under global capitalism. The sense that the pace of the world is continually

speeding up has been brought about by new technologies of instantaneous communication, flexible production, and global transportation networks. FedEx, of course, is the perfect emblem of this phenomenon, delivering packages overnight around the World.

2) The movie shows how Chuck Noland ( Tom Hanks)

Is isolated on a deserted island due to a plane crash. Nonetheless, it’s also a thrilling adventure, a compelling fantasy of life outside the bounds of “civilization,” in which a pudgy middle manager is transformed into a lean hunter and master outdoorsman.

3) Once on the island, time operates in a completely different way. All the pressures of deadlines of the FedEx world no longer matter. Instead, Chuck’s life is ruled by the inexorable cycles of nature: the rising and setting of the sun, the ebb and flow of the tide, the changing of the seasons.

4) In place of the relentless rush of his life in the USA, Chuck on

the island is faced with a different challenge : monotony

5) Chuck finally escapes back to our world, but a changed man. The film elegantly dramatizes conflict between our hurried world &Chuck’s new sense of time in a series of deliberately paced scenes in which Chuck is awkwardly welcomed back by his colleagues.

TV PLACEMENTS AS COMPARED TO MOVIE PLACEMENTS

• Movies as against TV placements offer a greater scope for value additions. The product that is placed in films is high on reachability.

• First the product gets exposure in theatres, then through DVDs (home video) and at a later date it may gain a wider access when it is aired on satellite television.

• There is no point in doing a one-off placement, as all it gets is flitting attention.

• Television offers a relatively more 'controllable' medium than films. • Placing brands in a certain television program allows the advertiser to know who he is

targeting whereas in films the brand reaches relevant and non relevant target audiences and the returns are difficult to allocate.

• Apart from providing a fine focused audience to the advertiser, television also provides a

cheaper option to the client.

• Since the deals are by and large a two-way negotiation between the channel and the

advertiser, if brand positioning in one program does not work out, the client can be accommodated by the channel in another program.

Evaluation of Product Placement

CAN WE EVALUATE THE EFFECTIVENESS OF PLACEMENTS?

Media e2e, in line with its philosophy to get global best practices into India now integrates world class expertise in different areas of product placements to offer a cutting edge solution through its BRANDED ENTETAINMENT SUITE for the Indian market. The Branded Entertainment Suite offers South Asia’s first Product Placement Evaluation tool in collaboration with iTVX. Media e2e and ITVX is committed to tracing the quality in all forms of branded entertainment, including Television • Radio • Movies • Games • Print • Live entertainment • Sports sponsorships . It’s used internationally by world's largest clients and agencies. The ITVX tool offered by Media e2e is a product placement valuation metric service for media professionals in the branded entertainment industry. The system hinges on Q-Ratio.

• The quantitative metric known as a Q-Ratio™ reflects the quality of product placement

or branded entertainment exposure. • It is based on the simultaneous calculation of 50 variables. • The joint venture between Mediae2e & iTVX will help advertisers, media planners,

content producers & TV stations with valuation & quality of product placements & other forms of Branded Entertainment.

• The summary output at the end of a product placement is Q Ratio , a single metric that

represents the quality of the product placement.

• This ratio can be applied in a number of ways to privy costs the client typically uses for media measurement to guide prognosis or diagnosis of what clients got for their money.

WHAT IS Q-RATIO?

• “Q” ratio is a global measure for quality of product placements.

• Measured as a % of a 30 sec ad i.e. –

Decimal fraction of a 30 sec ad or Number of commercials to which it is equivalent.

• Creates placement standards & parameters for broadcasters, agencies & advertisers.

• Hedges the risk in product placement deals.

Q RATIO SYSTEM CONSISTS OF 2 COMPONENTS

1. A psychological dimension, with 3 parts ( and multiple levels) that simultaneously interact with each other.

Impact factor- The backbone of per calculations

Awareness factor- Measures of involvement Integration factor - Measures of engagement

2. A perpetual dimension eg: signal attributes

The clarity of audio & video This is called a ‘threshold measure’ – below a certain point it can detract from

the message & damage the impact. PRODUCT PLACEMENT MODIFIERS

For this we consider external forces such as :

Demographics & psychographics of the audience Brand resonance , salience , awareness etc.

SYSTEM PROCESS

iTVX & Mediae2e have perfected a four step process using the system :

1. Product placements are captured & scanned into the system by iTVX trained scanners. 2. iTVX editors work the scanned material into seamless clips that efficiently & accurately

capture the product placement impact categories to the one hundredth of a second.

3. iTVX analysts use a combination of technology enhanced measurement templates & rigorous technical guidelines assess the proper weights to apply using the rules-based system features.

4. On a random but regular basis, the process of quality judgments is tested using inter-

rater reliability testing. This is a standard technique used in the sciences to assure accuracy & proper tolerance of judgment tasks.

Advantages of Using the Q-Ratio™ and iTVX System The Q-Ratio™ establishes a useful starting point for your business discussions and decisions, as well as your own privy calculations and valuations

• The precise Q-Ratio™ can be applied against a predetermined cost or CPM model • It can also clarify your proposal by offering precise estimates of levels of payment for

"Result Oriented Integration or Pay-on-Performance" deals • In addition, the iTVX System allows you to study and learn what constitutes an effective

placement

The Q-Ratio™ can be used as a sales tool for in-person and online client presentations

• To generate online proposals with a visual element • To demonstrate quality integration placements delivered by your company • To archive reference data for quick and easy application • To limit travel time and costs for presentations

The Q-Ratio™ can be used as a monitoring tool

• Marketers can independently assess the quality of the placement proposals they receive from their agencies

• Marketers can compare and benchmark placements to adjust the integration for added value

• The iTVX System can help clarify the potential of multiple proposals, cutting decision time and supporting better decisions

The Q-Ratio™ will help Marketers, Advertisers, Producers and Networks do business

• Eliminates legal red tape for make-goods • Expedites signatures

• Protects and hedges the clients risks • Can be used as a specific "added value" in negotiating product placement/media buys • Multiple brand and product placement performances can be monitored, tracked, and

archived on a daily or monthly basis via the Internet • Multiple viewers can access the results overnight on their laptop anywhere in the world,

eliminate the time and expense of sending video tapes

iTVX Instant Access Player The Instant Access Player is a Hi-Tech "real time viewing" information reporting system that provides marketers, agencies, producers and broadcasters with comprehensive "Quality" measurement and statistical data of your product placement The system calculates over 50 factors simultaneously measuring the Q-Ratio™ of the product placement. Some of these factors include:

• Impact Factors: The hierarchical measurement of the 10 Base Levels of product placements. (from Background to Verbal Plus)

• Impact Adjustment Factors: The Impact Factor is adjusted by a placement's Presence, Clarity, and, most importantly, the Integration Analysis, adjusted by how seamless the placement is organically woven with a beginning, middle and resolution

• Awareness Factor: Calculates a viewer's awareness and recall of content to their awareness and recall of commercials in the same show.

• Awareness Adjustment Factors - The Awareness Factor is adjusted by multiple parameters including: Venue, (from viewing commercial TV to viewing an IMAX movie), Tie-in Promotions, Billboards & Strategic Commercial Positioning, Program/Brand Alignment, Engaging vs. Intrusive Attributes, and Placement Positioning on the program

As mentioned above that the Q Ratio is based on simultaneous calculation of 50 variables. These include the following

1. Background - Passive

2. Background close-up - Passive

3. Foreground - Passive

4. Foreground close-up - Passive

5. Hands-on (actor touches product) - Active

6. Hands-on plus close-up - Active

7. Implied endorsement (actor uses product). At this point, commercials – Active and Hyper Active and product placements are considered equal.

8. Wardrobe (actor wears product) - Active and Hyper Active

9. Verbal (actor mentions product) - Active and Hyper Active

10. Verbal plus (actor mentions and touches the product) - Active and Hyper Active

Project Report by • Ms .Karishma Chabria (Mumbai Educational Trust) • Ms. Dhvani Hemani (Mumbai Educational Trust)

Guides from Media e2e, India