is an advertising approach that allows broadcasters to gain control on advertising revenue. The
TV show and
movie are recorded in production studios with placements spots in it. Same shows are licensed and broadcasters sell the placement spots to the advertisers.
Further, post-production techniques are applied to populate the placement spots with content.[1]. Despite being a billion-dollar industry, current advertisement rendering techniques are time-consuming, costly, and executed manually with the help of visual effects artists, so it is quite problematic to add high-quality VPP inside a scene. For example, a coffee machine company might use VPP to add one of its products to the background of a cooking influencer’s or some scene in the kitchen.[2].
In case of traditional product placement — where filming or photographing physical products during content production is required during production — virtual product placement is part of the post-production process, which happens after content is created. This means content creators aren’t directly interacting with advertised products, but it also makes VPP more flexible than traditional methods.
The concept of inserting products into media after their creation has evolved alongside progress in digital technology. While traditional product placement has a long history in film and television[3], virtual product placement represents a more recent and technologically sophisticated approach.
Early concepts and experiments (1990s–2000s)
[edit]- Early experiments with digital insertion technology began in the late 20th century. These were often rudimentary, involving simple overlays or limited object tracking.
- The development of computer graphics and video editing software laid the groundwork for more advanced VPP techniques.
- Early examples were often seen in sports broadcasts, where digital billboards or advertisements were overlaid onto the field or stadium[4].
Technological Advancements and Growth (2000s-2010s):
[edit]- The rise of digital video and streaming platforms created new opportunities for VPP.
- Advances in computer vision, object tracking, and augmented reality enabled more seamless and realistic product insertions.
- Companies began developing specialized software and platforms for VPP, smooth the process and make it more accessible.
- Early companies began to appear offering systems to do this work.
The streaming era and mainstream adoption (2010s–present)
[edit]- The rise of streaming services and on-demand video content accelerated the adoption of VPP.
- Platforms like Netflix and Amazon Prime Video began exploring VPP as a way to monetize their content and provide targeted advertising[5][6].
- Live sports broadcasts embraced VPP to enhance viewer engagement and create new advertising opportunities.
- The rise of AI, machine learning, and computer vision allowed much more accurate and realistic insertions of products into media content.
- The metaverse and virtual worlds are now making VPP a key part of advertising strategies.
- Augmented Product Placement: With AR glasses, brands can create virtual products that users can interact with in real-world settings[7].
- Interactive Product Demonstrations: While browsing a store or inside a store, AR glasses could overlay virtual information about products, including 3D models that you can manipulate or try[8].
- Enhanced Entertainment Experiences: During a live sports event, AR technology could be used for displaying: virtual statistics, player information, and even branded content onto the field of play(like why this shoe is better and should be bought)[9].
Types of Virtual Product Placement[10]
[edit]Static Virtual Product Placement (sVPP)
[edit]This type of product placement describes a method where the product is digitally inserted into a fixed location within a scene after production. This type of placement is similar to traditional product placement but is added after content is created during post-production, or long after the content was released. It can be used to add products or other advertisements that weren't present during filming or to replace existing products with different brands or localized versions.
Dynamic Virtual Product Placement (dVPP)
[edit]This type of product placement is similar to previous with a difference that the place of advertisement is selected by a computer system. Drawing on principles explored in early systems like MiSPOT[11] ("Multimedia intelligent SPot On Television"), dVPP use technologies such as AI and data analysis, including machine learning, to analyze viewer demographics, contextual relevance of the content, and even real-time data. This method helps deliver more personalized and targeted product placements, potentially allowing for scenarios like advertising a local version of some juice instead of a world brand, or displaying the name of some local car repair shop instead of the original car repair that was in the TV show.
Interactive Virtual Product Placement (iVPP)
[edit]This type of product placement allows viewers to interact with the products inside the content, like see additional information, using technology like Augmented Reality or Virtual Reality. Also user could have the ability to click on a product that was advertised inside the content for buying or see more information about it.
User-Defined Virtual Product Placement (udVPP)
[edit]This type of product placement depends on user preference and will place products that the user likes or shows interest in. Advertised content related to user age, gender, location, etc. For example, a viewer might choose to see products from their favorite brands, like seeing Coca-Cola instead of Pepsi-Cola or vice versa. Another example is showing child-related content for children, like instead of all alcohol could be displayed some juice or other child products.
Content-Defined Virtual Product Placement (cdVPP)
[edit]This method means that the advertisement is related to the content. For example, inside some family shows will be displayed additional products that are related to the scene, inside a children's room - some additional lego, inside a kitchen - some additional cooking pot, etc.
Benefits and considerations
[edit]- Non-intrusive advertising: VPP can blend seamlessly into content, reducing viewer annoyance.
- Targeted reach: It allows for precisely targeting specific demographics, countries, or consumer behavior[12].
- Increased brand visibility: It can enhance brand awareness and memorability.
- Flexibility: It allows for post-production adjustments and updates.
- Localization: VPP allows the presence of small companies inside global content, For example, a small local pizza shop could be displayed during the Olimpic game translation
- Risk of audience backlash[13]: Poorly executed placements can damage brand perception.
- Authenticity concerns: Viewers may perceive placements as inauthentic or manipulative.
- Measurement challenges: Accurately measuring the effectiveness of VPP can be complex[14][15][16].
- Ethical considerations: Issues of transparency and potential manipulation appeared with a lot of generated content, and some governments try to regulate it: Digital Services Act, Marco Civil da Internet[17]
- Product visibilities: The product could be present on the frame, but it could have a small size or be unrecognizable[18]
- in-depth (not just passing mentions about the subject)
- reliable
- secondary
- independent of the subject
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