Television networks that are used to high ad revenue from automakers are feeling the pinch as U.S. automakers are losing money and not taking out TV ads. But one potential buffer for networks trying to hang on is to sign Detroit automakers into more product placement deals.
Of course, this isn’t the easiest way to go in today’s economic climate, as no companies want to part with too much of their money. But if an automaker has “X” amount of money to spend, it might make sense to try to steer “X” amount into brand integration via product placement.
Advertisers have various options to pull out of upfront commitments, which allows them to take back some of their money. But while that may be easy to execute, when a deal involves spots in a prime-time TV show, it would seem extremely complicated when a marketer has paid for using its new car into a TV series.
What’s Good for the TV Series Isn’t Necessarily Good for Detroit
Once a product placement deal is in place, the series goes into production, highlighting a particular brand or even making it part of the story line, it would seem difficult to get that money back and to rewrite the script to get the car out of there.
That makes product placement a smart deal for the networks, but not necessarily for Detroit.
FX has taken advantage of this type of deal by signing with General Motors last summer to include its Cadillac brand within the legal drama “Damages”. The FX’s show started its second season January 7, and sure enough, Cadillac was a sponsoring the premiere commercial-free.
Before the show even began, there was a promotion for three Cadillac models. At the end of the episode, actress Glenn Close thanked the brand for its support. So much for subtleness.
This support came from the same company that dropped Super Bowl and Oscar advertising.
“The issue is we were already signed, sealed and delivered,” Joanne Krell, Cadillac director-communications told Advertising Age last month. “While it's true we have cut back on a number of things, we are honoring our commitments where we have them and this was one of those.”
Ford Still Sponsoring American Idol
Ford is returning to “American Idol,” even though money isn’t flowing as it did in the first few seasons. But Ford isn’t going to drop that prized integration unless it absolutely has to, and before that happened, it would probably look to Idol for a loan.
Cadillac’s Placement Future
Cadillac’s Krell indicated that GM would have scaled back on the “Damages” promotion if the deal hadn’t already been made. This season, Cadillac is placing three of its brands into the show: the SUV Escalade Hybrid, the CTS and the XLR convertible. And the placement is getting bolder: A voiceover at the beginning of the show proclaims “All season long, follow the new Escalade Hybrid, CTS and XLR through the twists and turns of season two ...,” with close-ups and aerial shots of the vehicles in motion.
Ad Age reported that Cadillac has “a right of first refusal” whether to return for “Damages’” third season. Considering GM may not even be operating by that time, product placement may not be right due to the lack of options that might come with it.
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