May 22, 2008
by Ronald Grover from Businessweek
by Ronald Grover from Businessweek
Summary
Seven years into a monster ratings run, Fox Entertainment’s American Idol has become as much a marketing showcase as musical slugfest. Many prestigious companies like Apple, AT&T, Coke put huge amount of money for product placement in American Idol. This year advertising agencies figuring out which age group is watching the show and the age group was proved as a mom. So, American Idol added Apple considering their purchasing pattern.
My opinion
PPL(Product Placement) became very effective method in advertising. The first time I realized Product Placement for the first time when I was watching the movie “ Shiri”. It was very nice movie, but sometimes the movie directors too much emphasize on particular brand name. So it wasn’t easy to just concentrate on the movie.
To maximize the profit, for the advertisement agency, their best interest is to show their product as frequently as possible. However, lots of product placements on the show discourage people to watch the show because no one would want to see commercial through the show. The
relationship between the number of commercials which placed on the show and the number of audience could be regarded as an inverse proportion. If we put the number of commercials on x axis and put the number of audiences on y axis, it is vital to find the point or spot on this inverse proportion that maximize the square. In this point, audience not only enjoy the show but also tolerate many commercials.
Seven years into a monster ratings run, Fox Entertainment’s American Idol has become as much a marketing showcase as musical slugfest. Many prestigious companies like Apple, AT&T, Coke put huge amount of money for product placement in American Idol. This year advertising agencies figuring out which age group is watching the show and the age group was proved as a mom. So, American Idol added Apple considering their purchasing pattern.
My opinion
PPL(Product Placement) became very effective method in advertising. The first time I realized Product Placement for the first time when I was watching the movie “ Shiri”. It was very nice movie, but sometimes the movie directors too much emphasize on particular brand name. So it wasn’t easy to just concentrate on the movie.
To maximize the profit, for the advertisement agency, their best interest is to show their product as frequently as possible. However, lots of product placements on the show discourage people to watch the show because no one would want to see commercial through the show. The
relationship between the number of commercials which placed on the show and the number of audience could be regarded as an inverse proportion. If we put the number of commercials on x axis and put the number of audiences on y axis, it is vital to find the point or spot on this inverse proportion that maximize the square. In this point, audience not only enjoy the show but also tolerate many commercials.
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