Commentary

Limited Ad-Supported TV, Media: More Opportunity For Branded Entertainment?

In an increasingly elusive world of traditional TV-media placement -- with limited ad-supported inventory on streaming platforms -- are brands really considering more product placement/ branded entertainment activations on TV, and elsewhere?

Look no further than the rise in theatrical movie brand associations -- signage, storyline, and voice activations -- in and around upcoming movies, according to branded entertainment media executives.

Netflix’s “Happy Gilmore 2”, which debuts July 25, has U.S. Bank as a major sponsor in the movie’s sequel -- that includes product placement signage as well as being in the movie script. U.S. Bank is being portrayed as a fictional sponsor in the movie’s golf-tournament.

This follows efforts around toymaker Mattel to accelerate new TV production efforts -- which were started decades ago -- now that Warner Bros.’ “Barbie” rocketed to new heights two summers ago to surprising blockbuster status about the iconic toy doll.

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Mattel intends to push and promote its other toy brands including Hot Wheels and Matchbox. Candy company Hershey will do the same with regard to the origins of its business.

All this follows up on “The LEGO Movie” in 2019, two years ago. A new LEGO film is in the works. Other marketers such as Nike, AB InBev, and Saint Laurent have started up in-house studios to create entertainment content.

Perhaps the biggest brand association this year comes via Apple TV+ mega-production around “FI: The Movie," which partners with Formula One Group car racing. That movie has about half a dozen other sponsors -- SharkNinja, Tommy Hilfiger, Subway and others.

While we don’t know the extent of its brand placements for these third-party marketers, “F1” looks to create heavy brand spin for the car racing circuit.

Formula One allowed movie producers to film at real F1 races, using real teams and drivers. Analysts say the movie shows the entire sport's environment in a way rarely seen in mainstream media.

Analysts cite the rise of limited ad-supported streaming services -- which run anywhere from 4-6 minutes per hour on average -- have forced brands to consider different options.

Recent Nielsen data shows that 72% of TV viewing was on ad-supported platforms. That 42% of that comes from streaming platforms -- and it is rising. Some streamers are slightly expanding their limited-advertising option from the standard 4-6 minutes per hour of 30-second commercials.

At the same time, streamers are finding ways to expand branded entertainment options when available, including Netflix’s “Happy Gilmore 2.” It is expected that soon after its theatrical release, the movie will be shown on Netflix.

Brands continue to seek ways to engage with viewers in less intrusive ways, hopefully for higher recall. Speeding trends around modern TV-streaming aren’t waiting around.

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