Product placement growing in music videos

Although a majority of views for music videos have migrated online, away from television, the need to pay for them hasn’t gone anywhere. Today, the industry that was initially supported by paying customers is now turning to advertising.

YouTube and Vevo are leading in the online music video vertical, and are looking for better and more ways to rake in advertising dollars, and are specifically focusing on product placement, which works better in entertainment than in news.

Vevo’s goal is to find product placement in its videos, which makes sense, as the company “works as a conduit between the world’s largest music companies and brand marketers,” according Vevo’s CEO, Rio Caraeff, MediaPost reported today.

Product placement in music videos was up from US$15 million to $20 million last year, just as overall paid product placement was down 2.8 percent, to $3.6 billion, according to data from PQ Media.

For example, Lady Gaga’s “Telephone” video, which has been viewed more than 108 million times on Vevo’s YouTube channel, included product placements from Miracle Whip, Wonder Bread and Virgin Mobile, MediaPost pointed out. Virgin was also the official sponsor of her “Monster Ball” tour.

However, just as other online ad formats have been experimented with in the past, only time will tell how much product placement viewers are willing to take before they get tired of watching.

Image: Screen shot of the “Telephone” music video on Vevo

This entry was posted in Advertising, Online video, product placement. Bookmark the permalink.

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