Notes

Celebrity Product Placement: A Primer
With a lot more companies wanting to integrate their products into the lives of
celebrities, now appears like a great time to have a closer look at Celebrity Product
Placement, describe three common approaches, and outline what steps could be taken
to guarantee results.

The word "Celebrity Product Placement" is used to describe several related
techniques, but its definition pertains to each: free products are distributed to
celebrities in expectation of a promotional benefit. Unlike the more overt, paid-for
endorsement, it offers a definite advantage. It can appear like a product choice
made on individual preference.

Most marketers don't realize their options in this category (one form features
contracts with celebrities, guaranteeing performance and allowing marketers to
actively leverage celebrity patrons in the media) and therefore many overlook a very
powerful influencer-marketing technique.

In this article, I am going to describe each one of the three main approaches and discuss their
relative merits by listing their benefits and drawbacks. I also hope to quash any
misconception that Celebrity Product Placement should be a gamble, and show you
how best to secure a return on investment (R.O.I.).

But first, just a little history...

Celebrity Product Placement (sometimes called "Celebrity Seeding") has been around
because the dawn of marketing. Centuries before Arnold Schwarzenegger stepped into
his first Hummer, an 18th century potter named Josiah Wedgwood began supplying
his wares to England's Queen Charlotte. Being given the title "Potter to Her Majesty"
led to a huge amount of publicity for Wedgwood which he took benefit of using
the term "Queen's Ware" wherever he could.

It wasn't before 20th century that marketers keyed-in on America's "royalty":
Hollywood. But generally they met with disappointing results. Some
companies responded only to occasional requests for products ("gifting"), while
others made half-hearted attempts to distribute them without first devising a way
to guarantee results ("seeding"). In the end, most companies seeded product "to the
wind" and didn't grow anything of value.

Those efforts that did succeed, however, were so successful that independent
specialists emerged to greatly help companies achieve greater results. But the services they
offer vary therefore do the results.

What's EVERYTHING About?

Marketers have long known the power of celebrity to influence consumer-
purchasing decisions. The word "borrowed equity" has been used to spell it out how a
celebrity endorsement can bestow upon a product special attributes and cache it
might not otherwise have.

The same concept applies to Celebrity Product Placement. But unlike celebrity
endorsements, in which a highly compensated personality appears in commercial
advertising, Celebrity Product Placement offers marketers a more subtle and highly
effective means of achieving the public - via the media they consume by choice.

Indeed, Celebrity Product Placement is really as much about placing products with
celebrities as it is about getting stories about those relationships in to the press.
Regardless of the approach, Celebrity Product Placement strategies have a common
aim: to tie celebrities (thought-leaders, influencers) with consumer products in the
public consciousness.

Three different techniques offer three different levels of control over that placement:
gifting-the-talent (this usually involves supplying products for gift bags at live
events); product seeding (products are distributed more widely hoping of securing
a promotional benefit and kicking off a trend); and, barter relationships (individual
celebrities agree to participate in custom programs in trade for valuable
products).

Let's have a look at each one in greater detail.

GIFTING-THE-TALENT

"Everybody" knows that celebrities own all of the coolest stuff, and well before
everyone else. Celebrities travel the planet and every minute detail of these daily
lives pervades the media. As style-leaders, they're perhaps our most effective
influencers. It's no wonder then that companies are lining up to provide them with the latest
gifts and gadgets for free.

One method to do this is called "Gifting-The-Talent." This generally involves
supplying free product for insertion into "goody bags" which are passed out as
'thank you' gifts to celebrity presenters and award nominees at the now-countless
awards shows and charity benefits that dot the entertainment landscape.

At last year's Academy Awards, for example, one of two Best Actress gift-bags
featured Gucci sunglasses, a Sprint PCS phone, Christian Tse 18-carat gold Iris
earrings, and more. THE VERY BEST Actor bag featured Gucci eyewear, a Maurice Lacroix
Swiss watch and assorted other goodies. In accordance with news reports, the retail value
of one such group of bags at the Oscars exceeded $110,000 each!

But how effective is this practice? If the goal of Celebrity Product Placement is to get
press coverage, can we gauge the value of gift-bag placements? What forms of
products are suitable and that are not? And what degree of control does this plan
offer marketers both with regards to demographics and reach?

There is absolutely no denying the value of being connected with these glitzy events, and by
extension, the celebrities who populate them. On the plus side, they provide a rare
opportunity to get close to the biggest stars on earth. On the minus side, the
marketer does not have any control in matching up celebrities who hold sway over their
particular demographic. They have to play the cards they're dealt.

Gifting-the-talent at award shows virtually guarantees mentions in the celebrity
press during the function; but without permission to associate the celebrity's
name and likeness with the merchandise, marketers don't have the leeway to truly
leverage those relationships in their own press activities.

Gifting-the-talent in this way has other limitations: first-movers snap-up desirable
categories and, of course, not absolutely all products are deemed appropriate. You won't find
an energy drink in these bags.

PRODUCT SEEDING

Product Seeding offers marketers more control over whom to place products with
but, conversely, less control over how (or if) those products get used. And, while
just about any product - from water in bottles to consumer electronics - can be seeded
with celebrities, marketers are playing the odds here. However the payoff can be huge if
the seeding is supported by a creative strategy.

Product Seeding may be the oldest form of Celebrity Product Placement. Products are
distributed more widely. They might be aimed at celebrities who are most compelling
to your demographic. Plus they can be delivered right to the celebrity without the
filters imposed by events. Of course, working with an expert who is able to get your
product directly to celebrities becomes paramount here. Film and television product
placement agencies are NOT set up because of this practice.

Taken by itself, Product Seeding is really a gamble. In more info that you send enough freebies to
Hollywood but you don't possess a creative strategy, a high profile might be photographed
making use of your product or evangelizing it on a talk show. But if one talks about Product
Seeding as you tactic in a more substantial Celebrity Product Placement effort, it can pay big
dividends - particularly in identifying celebrities who've a true affinity for the
product.

Energy Brands, makers of the Glaceau Vitamin Water line, discovered this in 2004.
As a result of its long-time technique to "home deliver" the vitamin-enhanced drink
to celebrities (including Sean "Puffy" Combs and Tom Cruise), the business gained a
fan in 50 Cent. Having mentioned his preference for the merchandise in some
interviews, the Hip Hop star - who's well known for his fitness-centered lifestyle -
became a clear choice for brand spokesperson.

Speaking to Ad Age magazine, Energy Brands' VP of marketing, Rohan Oza, said
"We've seen that whenever 50 Cent incorporates [Vitamin Water] into his day to day routine ...
the brand gets on the airwaves and we develop a large amount of trial." Making vitamin water a
visible area of the rapper's healthy lifestyle worked so well the company launched a
new "Formula 50" variety named for the artist.

Such "organic" relationships can grow from Product Seeding. Not only can marketers
reap the benefits of press mentions, however the process can be used to uncover promotional
opportunities and, in some instances, identify the most ideal product endorsers.

Product Seeding remains a gamble but, if executed properly, one really worth taking.
Relatively speaking, this is a very low-cost marketing program. And the return on
investment - though difficult to forecast in comparison to barter relationships discussed
below - could be big. But imagine if your goal is bound to getting press mentions? Can a
publicist hedge his / her bets in this category?

One of the great things about Product Seeding is how creative you may get. For
Trident White nicotine gum, the business commissioned a Harris poll asking the
public to vote on the very best "celebrity smiles." My company, which focuses on
celebrity product placement, delivered gift baskets of the merchandise to the Top 6
winners, allowing Trident to plug the celebrities in their press materials.

On another occasion, Electrolux - maker of a fresh high-end, super-quiet vacuum
cleaner - wanted to align their product with celebrities. We identified 6 celebrity
moms who had recently given birth and - touting the point that these vacuums would
not wake a sleeping baby - made gifts of the product to each. Here again, the
company was able to use celebrities to draw press coverage because of its product. And
they were in a position to reference these celebrities since they were stating facts (a gift
was designed to...).

But what if you would like tighter integration with celebrities? Suppose it is advisable to
forecast a return on investment to get approval for a high profile Product
Placement campaign? And what if you wish celebrities to supply feedback about
your product and authorize usage of their names and likenesses as part of your press
campaign?

BARTER RELATIONSHIPS

Barter is, perhaps, the only way to guarantee performance on the part of the
celebrity. Unlike other forms of gifting, this is a quid pro quo relationship whereby
the celebrity agrees beforehand to take part in the marketer's promotional activities
- in trade for valuable product.

Celebrity Product Placement campaigns of this type work best for big-ticket items
such as consumer electronics and (the loan of) cars. But with creative approaches,
special product questionnaires and generous "Right of Publicity" agreements,
marketers may use the celebrity's name, likeness and opinion as part of their public
relations campaigns.

Celebrity Product Placement - via barter agreements - can be among the most
affordable methods to use celebrities. For the price of a few products, and sometimes a
token honorarium, companies can integrate testimonials into their PR materials and
create customized celebrity content for his or her websites.

They can involve numerous stars in a press campaign for less than the price of a
single paid celebrity spokesperson. It is just about the most under-exploited tactics
available to marketers today.

A Case Study: Sony Electronics

The Sony CD Mavica - at the time, the only camera offering a built-in CD-
Rom - had didn't penetrate the increasingly crowded market for digital imaging
products. This was troubling for Sony as the CD Mavica offered clear
advantages over its competitors; namely, freedom from wires. But that message had
failed to reach the public.

Sony wanted to involve celebrities with their products and for that involvement to
influence the public in a meaningful way. They wanted a high-profile event -
preferably benefiting charity - where to launch a yearlong press campaign in
time for the Christmas shopping season. The focus: to promote the simplicity of
CD-based photography.

The budget was limited. But, having learned that the most recent Sony products could possibly be
made available to gift the talent, The Hollywood-Madison Group proposed a
Celebrity Product Placement campaign. Each celebrity will be asked to take a
picture of what "Freedom" methods to them, and those photos will be auctioned off
for charity.

This artistic challenge, coupled with the chance of receiving free Sony product,
not only served to induce celebrities to participate, but offered us a fantastic
opportunity: to frame these pictures and mount an exhibition which raised money
for charity. Indeed, the charity component attracted higher-caliber celebrities and
provided the "hook" to draw media attention.

We successfully placed the Sony CD Mavica camera with fifteen top stars
including Eric McCormack, Alyssa Milano and Dennis Hopper. The photographs were
then offered on the market on eBay as part of Wired magazine's annual charity auction,
and put on display at a star-studded event in Los Angeles.

Fifteen top celebrities demonstrated the practical usage of Sony's product and
authorized using their names, likenesses and opinions about the product for
press and marketing purposes (for one year). Sony received free advertising for its
product in print and online for 90 days (worth around $100,000), as well
as 3.6 million webpage impressions (auction as a whole) and national press
coverage including Entertainment Tonight.

It is possible to read more concerning this project on our website>celebrity_projects>influencer
campaigns.

Conclusion

Celebrity Product Placement offers marketers a thrilling way to influence
consumer-purchasing decisions. Properly executed, it can be a low-cost, high-
return proposition. Therefore, it should be section of every consumer-marketing
program.

Three different approaches offer three different results: gifting-the-talent (narrow
focus); product seeding (broad focus) and, barter relationships (one-on-one focus).
But, as we have observed, a tightly integrated celebrity product placement campaign,
combining elements of each, can improve results and deliver an impressive return
on investment.

Jonathan Holiff is president and CEO of The Hollywood-Madison Group - the leading recruiter of celebrities for endorsements, appearances and press campaigns. Visit the website at [http://www.Hollywood-Madison.com]
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