Typically product placement agencies work either on a retainer or one-off basis.  Retainer clients are preferable because it allows the agency time to educate productions on the product and its features.  A brand like Nokia might be paying an agency anywhere from $20,000-$100,000+/year.  This might seem like a lot, but in reality, the return on investment is worth the work the agency puts into securing a placement.

Sometimes global brands (like Nokia) might partner with an entertainment property to promote the film (we call this a promotional partnership) or Nokia could have provided 70+ devices with service for the production team to use during the filming process in exchange for placement.

Keep in mind that the producers, set decorators, and property masters have a say in the content as well.  Sometimes placements are also scripted and therefore required to occur. A brand like Apple might not fit a characters scripted persona and therefore might not making on screen.

There are many other factors that come into play.  Product placement agencies do a lot of the leg work in developing solid relationships with studios and production teams to secure strong placements for their clients (brands).

11 Dec

Via Quora.

Stacy Jones

Stacy Jones has become a world-renowned specialist in branded content. Now it’s her mission to share her expertise and help brands and other business owners and executives leverage the tools our agency has crafted in building brand awareness – using the same proven methods she’s built her agency on and leveraged for client success.