Abstract

Traditional advertising has been less effective in influencing target markets and therefore various nontraditional advertising approaches have been emerged. One of the progressively growing nontraditional alternatives is product placement which has received incredible attention and interest among marketers. Despite the extensive use of product placement little has been done regarding studying the true value of this marketing technique. Therefore, this thesis aims at addressing the financial worth of product placement and examines: (1) the impact of the number of product placements on the revenue of firms and (2) the effect of box office success of movies on the revue of firms. The research questions are addressed by adopting a linear regression modeling. The results show that (1) the number of product placement is an important factor in the positive move of revenue and (2) the total box office success of movies featuring the product does not influence the revenue of the firm.