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Do Marketing Media Have Life Cycles? The Case Of Product Placement In Movies, Ekaterina Karniouchina, Can Uslay, Grigori Erenburg

Business Faculty Articles and Research

This article examines the economic worth of product placement in movies over a time span of 40 years (1968-2007). The authors find an inverted U-shaped relationship between the year of the movie release and the returns associated with product placements. In addition, a similar inverted U-shaped relationship characterizes the economic worth of tie-in campaigns associated with product placements. These findings are consistent with the habituation tedium theory used to explain the inverted U-shaped pattern in response to novel advertisements and suggest that the same mechanism could be influencing the response to an entire marketing medium. Overall, the results reinforce the …