Five Major Examples of Movie Product Placements

Movies have featured product placements for decades. The presence of commercial products in films has often been controversial. The most recent controversy has occurred with the new James Bond film "Skyfall". Some Bond fans were dismayed after finding out that the British spy would be drinking Heineken, instead of his usual Martini. Here are five of the most significant product placement movies. Some were huge successes, while others were dismal failures.

When Steven Spielberg was planning "E.T." (1982), he needed a type of candy to feature as a plot device in the film. The makers of Reese's Pieces agreed to have their candy featured in exchange for spending 1 million dollars to promote the film. When "E.T." became a record-breaking hit, they saw their profits skyrocket 65% percent in one of the most successful product placement deals in history.

"Mac and Me" (1988) is an "E.T." rip-off about two aliens that crash land on Earth. The aliens love to drink Coke, eat Skittles and munch on McDonalds food. The film even features a song and dance sequence set at a McDonalds restaurant. The film was criticized for its blatant product placement and flopped at the box office. It did not cause any appreciable gain in the sales of the products it promoted.

"The Wizard" (1989) features a group of kids who are avid video game players and ends with a dramatic competition involving the then-new video game "Super Mario Bros. 3". "Super Mario Bros. 3" was a bestseller for Nintendo, and part of that success was credited to its feature role in "The Wizard."

The "Toy Story" series (1995-Present) is an example of effective product placement. Many different types of toys are featured in the film including dinosaurs, potato heads, astronauts, and Barbie dolls. The "Toy Story" films are credited with boosting the sales of the toys that they feature. They manage to integrate the product placement into the films in a way that feels natural.

In "Sideways" (2004), the two main characters take a vacation in California wine country. This made the film an ideal vehicle to promote several wine brands. Sales of Blackstone Pinot Noir, which is featured in the film, increased an incredible 150% after the film's release. Meanwhile, sales of Merlot (which one the main characters dislikes) dropped slightly.

There are several benefits to product placement. The film companies are paid to feature products, lowering the production costs for their films. As we have reviewed, the products being promoted, and the ad agencies that promote them, can see a surge in business if the movie becomes a hit. Consumers can benefit from product placement as well. If production companies have more revenue to spend on their films, they will theoretically make higher-quality movies. In addition, consumers may find products they are interested in by watching these movies. Product placement has become a permanent feature in modern film-making.

Greyson Gahner is a business student, blogger, and movie-goer. Catch more of his expert advice by reading his MBA in Marketing Guide.