What is product placement? Product placement is a method of advertising where commercial products are seamlessly placed in media and become integrated into it. An actor in a movie using a product that was paid to be placed in the movie is product placement. A music video that showcases a product because it was paid to do so is product placement. A video game that features a product that was paid to be included in it is product placement.

Product placement is a form of paid advertising that works differently than paid commercials. Many consumers do not realize that product placements are paid for. And, when they see their favorite actors, movie stars, celebrities, bands, and video games utilizing certain products, it affects them differently than a commercial that they know is paid for would. The product becomes a part of their favorite media.

One of the earliest examples of product placement in movies was in E.T. In the movie, Hershey's Reese's Pieces candy was prominently displayed and the concept was a huge success. It was reported that sales of Reese's Pieces increased by over 65% immediately following the release of E.T.

Other examples of product placement in media include:

• Exxon paid $300,000 to appear in the movie, Days Of Thunder
• Warner-Lambert had their Junior Mints candy to be used in a Seinfeld episode
• MSN search was featured in the movie, The Island
• Donald Trump's business reality show, The Apprentice, features multitudes of product placements, including the Pontiac Solstice, Crest Whitening Expressions, and Yahoo Local Search
• Ads from real sponsors on billboards in sports video games, like the sideboards in hockey games, for example

Although not all consumers appreciate product placements in their media, it seems be better received than, say, commercials that interrupt regular programming.