This is one of two presentations I gave at the branded entertainment conference in Johannesburg on 24 March 2010. This particular presentation focuses on structuring branded entertainment deals, primarily the insertion of brands into film or television scripts. Many of the points are applicable to other forms of branded entertainment and branded content. I have gone with more text in this presentation than I normally do so it should be fairly easy to follow. A good deal of the content within the presentation is taken from Jean-Marc Lehu’s book Branded Entertainment which I believe is the best book on branded entertainment to date.

1. doing the deal
patrick collings
sagacite
branded entertainment conference
johannesburg
march 2010

2. the right content
the right association
the right price
the right deal

3. much of upcoming focus on insertion of
brands into entertainment projects
taken from the view of the brand, but
applicable to many aspects of branded
entertainment and content

5. the right content
image by stephen poff

6. 3As

7. appropriate

8. authentic

9. alignment

10. the right association
image by stephen poff

11. the objective of branded entertainment or
branded content is to associate a brand with an
entity or a situation thereby creating favourable
brand awareness and understanding

12. that association can be through a logo,
mention of brand name, the product or
its packaging or a combination

14. association can be achieved with four
traditional types of brand placement

15. classic placement
the product appears in the camera’s
view during filming. relatively easy and
cheap to execute but may go unnoticed
or be easily discarded.

16. brand placement
brand over the product may result in
better longevity, easier insertion and
benefits brand portfolio. however,
requires viewer awareness of brand.

17. evocative placement
not for all. product must be original
and design distinctive enough to be
instantly recognizable. benefits from
careful integration into script.

18. stealth placement
highly discreet, almost undetectable
and mostly well integrated into a
scene given it a powerful impact when
identified. nod to those in the know
but easiest to be missed.

19. “Abnormal returns associated with product
placement in successful films are enhanced by
tie-in advertising campaigns and when the
placement is for a high equity brand. Product
placement worth is also enhanced by the
film’s audience size and when the product
receives (a visual and audio) placement.”
Michael A Wiles & Anna Danielova

20. however, value of placement is reduced when

21. audiences are absorbed in the film
when the film is critically acclaimed
when there is extremely violent content
the more other brand placements are included

22. 3 other types
of placements

23. virtual placement

24. reverse placement

25. product displacement

26. the right price
image by stephen poff

27. the anxiety question
image by luna di rimmel

28. Ford pay between $30m and
$40m to place Aston Martin
in Die Another Day
California Raisin Board
pay $25,000 to appear in
Back to the Future
France Télécom pay
$610,000 for telephone call
in La Bella Historie
Clairol pats $10,000 to have
products appear in Smile
1975 1985 1992 2002
Cost of Product Placement

29. $0
well close to that

30. R40,000 to be exclusive wine in one of 13
episodes of cooking show that will be
aired on BBC Lifestyle

31. distortion

32. factors that can influence the cost of a placement

33. The more famous the brand, the more likely the
recognition and derived benefit and therefore a
Brand’s fame higher placement fee than a relatively unknown
brand
Identification The more the brand is identified the higher the
of brand placement cost
The bigger the budget the more expensive the
The film’s placement is likely to be to mitigate risk of the
budget project. Often emphasis on promotional spend

34. Type and Small, independent and “arty” productions can not
genre of the expect to charge the same fee as international,
mainstream production
film
Those The more famous the actors, director and producer
involved in the and the better their individual and collective track
record, the more a brand can expect to pay
project
In many cases the cost of supplying the product
The barter constitutes the cost of the placement, but not as
deal cheap as one may think

35. The more prominent the placement in terms of
Seeing the screen space and time, the more the brand is going
placement to pay
Integration Integration beats appearance, therefore integration
into the story carries a premium over appearance
It gets used by If a brand gets used or mentioned by a principal
actor then expect to pay for that. And you may have
those that to pay the actor as well, especially if that association
matter is used in additional marketing material

36. Too many brands dissipate the viewer’s attention,
Exclusivity for but exclusivity costs and your competitors want it
the brand just as badly
Placement in scenes that are shown in addition to
Recurring the entertainment piece, such as trailers or websites,
placements can expect to pay more
The more people that potentially can see the film or
How widely show, the more the brand will pay to be inside the
distributed film or show. Also consider secondary distribution.

37. Placement cost goes down if promotional cost goes
Accompanying up, but in the end the costs must be tallied. Also
communication need to consider who is benefiting more.
Don’t forget the The ability to merchandize the involvement or even
tie-ins implement reverse placement
The cost of Need to factor in additional fees such as legal and
getting the deal agent’s commission

38. lot of common sense,
but no single formula

39. the right deal

40. things to remember for those
boardroom negotiations
image by nur hussein

41. Is the subject and story line compatiable with the
Subject and brand’s past, present and future? Is it in line with the
story line brand’s values? Context is important. Remember to
state that script change can nullify the agreement
Similar to the previous point, but deserves own
Is it authentic emphasis: is the brand’s inclusion authentic? Tramps
don’t normally wear Cartier watches
Take into the consideration the studio’s previous
What has gone handling of product placement. Is your brand
before getting a worse, similar or better deal to what has
gone before?

42. What is their attitude towards brand placement. Are
Know the they willing participants or are they being forced to
director incorporate your brand.
Who has the Is it the producer or the director? What is the brand’s
final say ability to influence or demand compliance.
Actors Which actors will be associated with the brand and in
what context. Remember that actors have their own
associated brand equity beyond the success or failure of the
with the brand project

43. Is the brand placement compatiable with the actor’s
Contractual contractual obligations away from the film.
compatibility Authenticity suffers when the brand fails to go home
with the actor.
Where Try and secure as much as possible in the contract.
possible, write Difficult for placement of product but relevant
extract from script can be written into contract
it in
Don’t lose control of the brand just because it is on a
Try stay film set. If possible make sure there is someone to
involved advise on the placement

44. Get yourself in Being thanked in the credits makes the brand
the credits association look less like brand marketing
Try leave Expect to pay something upfront, but it is preferable
payment until for the balance of payment to coincide with the end
of shooting or, better still, the release date
the end
Clearly state that the rights attached to the brand in
Protect the question remain the property of the brand. Restrict
brand usage to terms of the contract

45. Consider all tie-ins, public relations, supporting
Look ahead & advertising campaigns before you draft and sign the
anticipate contract.
Know when Understand when the film will be released and that
things will products placed are still valid. Is the brand protected
by delays?
happen
Precise conditions of a placement deal are rarely
Don’t tell disclosed because nothing undermines authenticity
anyone as much as an accompanying price tag

46. that’s a wrap

47. patrick collings
sagacite
e: patrick@sagacite.co.za
m: +27 (0)83 616 0967
w: www.sagacite.co.za
b: www.collings.co.za
t: pjcollings (follow me on twitter)