Product Placement in the Movies: A Brief History

Though they seem to get in the way of a story, product placement has been pushing the plot of the film industry for more than a century. Even the first Academy Award’s Best Motion Picture, “Wings” (1927), incorporated multiple product placements, including a Hershey’s bar being eaten.

Different from an ad we’d see during a commercial break of a television show, Product placements are embedded within the story itself, like when a character takes a long refreshing drink of his favorite cola, or when the sexy lady pulls a credit card from her designer handbag.

They come in many forms: shoes, stores, cars, colas, beers, sunglasses, credit cards candy, and fast-food restaurants to name a few. They are the diverse products that have helped foot the bill and fill the sets throughout the history of motion pictures.

By the early 1900s, short films called “cinematic pictures” were being shown at fairs and amusement parks in Europe and America. Due to their popularity and ability to showcase virtually anything in motion, it’s easy to realize why advertisers saw their potential.

But placing products within the story was a tricky thing to do in the 1900s and 1910s. The quality left little room for clear placement and films were oftenfantastical realizations of imagination – leaving little room for real world possessions.

It wasn’t until the 1920s that product placement begun to squeeze into the movies, creating a relationship that would allow cinema to grow even during the Great Depression. During the 1920s and 1930s, major motion pictures begun to see how fitting advertising in their story could help fund the filming before revenue could be generated. Also, it could even soften a major financial setback if the movie was a flop.

From that point on, marketing would find a permanent home in Hollywood.

A study of product placement on the top grossing films of each decade since the 1920s has found a significant increase of product placement screen-time. “Wings” (1920s), “Mr. Smith Goes to Washington” (1930s), and “The Best Years of Our Lives” (1940s) combined for an average of 3.7% product screen-time. The number increased to 10% in the next 30 years, with a combined average from “The Greatest Show on Earth” (1950s), “The Graduate” (1960s), and “Jaws” (1970s). Most recently, “E.T. the Extra-Terrestrial” (1980s), “Independence Day” (1990s), and “The Dark Knight” (2000s) averaged 19.5% product screen-time.

So, who topped the cake with more than 26% product screen-time? Remember those irresistible Reese’s Pieces, which E.T. just couldn’t get enough of? However, it could have been M&M’S (rumor has it they passed on the chance) to cash in on “E.T. the Extra-Terrestrial”. Instead, Hershey’s Reece’s Pieces paid $1 million to have their candy on the big screen. Just two weeks after the release, Reece’s Pieces jumped 65% in sales – and, years of immeasurable revenue beyond.

Reece’s famous product placement was not just embedded in the film; it became a sentimental icon that connected a boy and his alien. With “E.T.’s” success then, and its success today as a “classic”, Reese’s will forever feel the effect.

While product placement can be eternally lucrative – and expensive – for businesses, it’s difficult to measure its effects. But, that hasn’t stopped marketers from exploring other techniques. In 1957, James Vicaryfamously inserted “Hungry? Eat Popcorn” and “Drink Coca-Cola” over a single frame, every 5 seconds or so, at his theatre. Though the image was too quick to notice, Vicary swore this subliminal advertising made his profits soar!

Subliminal or not, products want big screen fame now more then ever. It’s been reported that the new James Bond film will embed $45 million worth of product placement.

Product Placement in the movies has become such a part of the industry that they even sometimes push the plots. “The Greatest Movie Ever Sold” (2011) is a documentary entirely funded by product placementabout product placement. In “Wayne’s World” (1992) the idea of “selling out” to product placement is used as an ironic gag in the film.

Obvious, comical, subliminal or commonplace, product placement is a part of movies now more than ever.

In a nutshell: its one thing to want a watch a good-looking man in a tuxedo wears – but, when that man is James Bond — well now, that holds an entirely different appeal.


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