Virtual Product Placement as a New Approach to Measure Effectiveness of Placements

Product placement is a fast growing multi-billion dollar industry, yet measures of its effectiveness, which influence the critical area of pricing, have been problematic. Past attempts to measure the effect of a placement and, therefore, provide a basis for pricing of placements, have been confounded by the effect on consumers of multiple prior exposures of a brand name in all marketing communications. Virtual product placement offers certain advantages: as a tool to measure the effectiveness of product placements; as assistance with the problem in the lack of audience selectivity in traditional product placement; as a testing of different audiences for brands; and in addressing a gap in the existing academic literature by focusing on the impact of product placement on recall and recognition of new brands.