Bond likes his products – will audiences?

The latest instalment of the James Bond franchise, Quantum of Solace, is tipped to have as many product placements as Casino Royale – maybe even more.

So far it has been announced that Ford KA will appear in the upcoming movie, as will Virgin Atlantic, Bollinger, Turnbull & Asser and Heineken.

The film is attracting many of the same brands as Casino Royale, which raked in £1.7 million on its opening day at the box office in 2006, including Smirnoff vodka, Omega watches and Sony electronics.

These brands all have products placed in the film and each will shell out tens of millions of dollars as a promotional partner of the film.

Daniel Craig, who reprises his role as 007, won’t be the sole face to promote the products. Bond girl Olga Kurylenko, who plays feisty 007 ally Camille in Quantum of Solace, is being used to push Heineken beer and the latest version of Ford’s small European car, the Ka.  

Die Another Day, the last Bond film to star Pierce Brosnan, had over twenty different companies sign up to product placement deals – all paying up to £44 million for the privilege – a record for product placement in a feature film at the time (2002).

The news of the various product placements have already got the film buffs talking – some are even referring to the film as a “giant advert”. Viewers aren’t keen to be sold to when they are paying to be entertained, but an 11 per cent rise in profits at Heineken after appearing in the last Bond film is an undeniable enterprising opportunity. Sony Ericsson also saw its profits boosted after appearing in Casino Royale with a 23 per cent increase in sales.

Product Placement is a sensitive issue but broadcasters are keen to experiment with the possibilities as traditional advertising revenues decline. Currently products cannot be placed for cash payments in the UK, despite being a huge part of the movie industry.

Product placement not only offers a potential new outlet for brands to advertise, but also overcomes the threat represented by personal video recording technology such as Sky and Freeview boxes, which allow easy storage of programmes and permit viewers to skip traditional ad breaks.

Ofcom has estimated that the value of product placement to UK markets would be about £35 million after five years, but companies such as the WPP-owned Mediaedge:cia have said it would be far greater.

UK broadcasters have stressed that they will not follow the US model of overt product placement in programme as it jars with the integrity of productions.

From the studios’ perspective, partnership means brands can offset vast marketing budgets and target spaces studios couldn’t otherwise reach, like supermarket shelves. And for the brands, it is a DVR-proof way of getting their message across and associating their name with an established franchise.

That explains why global brands will spend £1.6 billion collectively on paid placements–that includes movies as well as television, radio and video games, up 39 per cent on 2005.

In the case of co-promotional partnerships, that money doesn’t always land in the studios’ wallets, however. Instead, the licensing and product placement fees typical of basic placements are often waived, because the brands are already spending anywhere from £1 million to £10 million on promotional efforts.

So is the brand hype and exposure worth the fee?

A film like Bond is more about the character than anything else. Therefore, if James Bond, the coolest, sexiest spy in the world, is using a Sony Ericsson handset – it’s a cool product. If you think about it, Bond is likes his prestige, his expensive treats and comforts, and even though a Heineken may only cost you £2.40 a pint, it’s way more prestigious and “cool” than a Fosters (drunk by football hooligans in Green Street Hooligans).

Does product placement work? Despite the vast criticisms, thousands of column inches have been dedicated to telling the world what brands are in the upcoming Bond film already generating free publicity for the brand and associating it with the most hotly anticipated film of the year. Those brands, talked about positively or negatively, are in our minds already and the film doesn’t come out for another two months. I’d say that was a pretty good investment, especially seeing as no one is paying attention to newspaper ads anymore. Perhaps product placement really is the way forward for advertisers – and it could just help us out of the recession?