The Law Dictionary

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PRODUCT PLACEMENT Definition & Legal Meaning

Definition & Citations:

An advertisement method used for promotion of products by companies through a non-traditional advertisement technique, usually through the medium of films, televisions or other such media. They are initiated through an understanding between the company manufacturing the product and the media company who receives economic benefit for the advertisement. The company pays a fee in order for their product to be used, showed or significantly featured in a movie or television show. For example, to have a lead character drink Pepsi instead of Coke, PepsiCo would pay a certain fee to the film production house. Through this method, the companies hope that audiences will observe the use of products and therefore think more strongly while purchasing such items.

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