Digital Video Integration



Digital Video Integration : (Digital Video Insertion, Virtual Insertion) Is the process of adding an virtual or digital advertisement to a program after it has already been completed.



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History:


To examine digital video integration (DVI) you must first look at its past; DVI stems from the large field of product placement (Galacian 118). Product placement has been around in Hollywood since the beginning, but most experts consider the modern incarnation to have started with Reeces Peices involvement in the 1982 movie E.T. (Lee, Johnson 304). Since then, advertisers have continued to place products in almost all forms of media from the not so noticeable Coca-Cola cups on American Idol judges tables, to Fed-Ex being one of the major funders for the movie Cast Away ( Azzaro 452).

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While this advertising strategy is still in its infancy, many companies are already using it on a huge scale. Developed
by a company called Marathon Ventures, the process called digital brand integration is the newest form of product
placement.
“We can place a product, virtually any size, in almost any location. It really depends on what the program and the video in each individual episode provides in terms of a logical or contextual background,” said Marathon Ventures’ president, David Brenner.msnbc.com
Princeton Video has the Live-Video Instertion System (L-VIS) called Elvis which can place a digital Elvis or "anything else" into film and television programs while they are being produced or after the fact (Galacian 118). These two companies along with a few other cutting edge pioneers are paving the way to make this form of advertising mainstream.

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Reasons for Use:


Dick Robertson, President of Warner Bros Domestic Television Distribution said "product placement is nothing new to television. This [ virtual placement] is just a better way of doing it , so the product doesn't have to live in the shows negative forever" (Galacian 121). This allows different retailers to have their product marketed at different times and tailored different to different markets, a pizza in Chicago could be digitally edited to be a Pizza Hut deep dish, while another telecast in New York could have a thin crusted pizza. Other reasons include the adaptivity of the editing, now if a product line is discontinued it can be digital edited from the program and replaced with another product altogether or simply redesigned to resemble the current product. Lastly and a huge step in the progression of DVI is the now common use of Personal Video Recorders (PVR) like TiVo, and On-Demand systems that allows audiences to fast forward through traditional commercials, with so many people skipping the commercials using these systems advertiser have had to find new ways to get their products out there.



Limitations:


As we press on into the 21st century the power of computers shows no end in sight and with that it makes imagination the limit of the use of DVI. Leader in this field Princeton Video has already developed systems that allows actors to interact with products that are not even there.
"If the quality is not there, the virtual placement will attract negative attention from the viewer, which is likely to result in a negative response," cautioned Allan Jaenicke, co-founder and managing director of Imagineer Systems, a UK-based provider of film and video post-production software tools. Ecommercetimes.com

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Cost:


"Both [cost-effectiveness and quality] are important when you consider the need for virtual product placements to be produced in higher volume and lower cost per placement compared to traditional 30-second spots, We see larger broadcasters and content owners coming together this year to work out revenue models for exploring one of the significant benefits of virtual product placements, namely that they can be changed and adapted geographically as well as demographically. This provides additional revenue opportunities when programs are sold internationally," said Allan Jaenicke of Imagineer Systems.FrontRow-Marketing.com reported that Apple and Pontiac each received over $250,000 in Media Value from the season premiere of 24, Apple received $292,800 in exposure by 12 total sequences and Pontiac received $256,200 in exposure by 8 total sequences. "The brand exposure and media value that is received from being part of a huge television series like 24 are well worth the cost. With all of the fans that big time shows like 24 have, it allows the company to receive constant exposure and in turn receive a great competitive advantage over others in their market ” said VP of Project Management for Front Row Marketing Services, Eric Smallwood productplacement.biz



Reach and Frequency:----

The reach and frequency of the product is dependent on the medium it is placed in. Network television and box office hits have the highest reach. Frequency is controlled by the budget of the products parent company, with factors like how long the insertion is left in the program, if its edited into other same genre programs and if the insertion is removed by the broadcasting company.



Scheduling:


Scheduling is dependent again on the reach of the medium where the insertion is present. This being said there are several times in particular when a different insertion is likely be added “You could place one product in a first-run telecast, a second product what that program is rerun, and a third product when the show goes into syndication, and another product when it goes on cable,” said David Brenner of Marathon Ventures. msnbc.com




Audience:


Audience, like many other variables, is dependent on the medium where the insertion is added. Audiences are usually unaware of theses insertions but it begs the question as to weather the audience is being exploited by ad companies by not receiving the opportunity to see the artists work the way it was created.




Responsiveness:

Product placement has been around for a long time and it has shown great signs of responsiveness. Now, with everything being digitally placed, it only makes it easier for advertisers to target their message further. Typically the role of product placement is to have consumers view their product without the invasion of a commercial and with DVI technology they can carefully monitor and tweak the effectiveness of products insetion throughout out the media, thus adding to the over all responsiveness of consumers.


Advertisers:


DVI technology continues to grow as advertisers become more aware of it the market. In 1999, UPN digitally inserted a Wels Fargo bank sign, Kenneth Cole shopping bags, and bottles of Coca-Cola and Evian into the show Seven Days after it was already finished. Virtual product placement has already been sold in a number of Warner Bros. shows including Friends, Drew Carey Show, and Suddenly Susan and more recently shows like Numbers, 24 and Still Standing.



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Works Cited:


Azzaro, Marian, and Dan Binder. Strategic Media Decisions. Chicago, Ill.: Copy Workshop, 2008. Print.

Cappo, Joe. The Future of Advertising: New Media, New Clients, New Consumers in the Post-television Age. Chicago, Ill.: McGraw-Hill, 2003. Print.

Cobb, Jerry. "Product placement goes digital, gets lucrative". MSNBC. 10/4/10 <http://www.msnbc.msn.com/id/11728512/>.

Cohen, Nancy. "Virtual Product Placement Infiltrates TV, Film, Games". E-Commerce Times. 10/4/10 <http://www.ecommercetimes.com/story/48956.html?wlc=1270917923>.

Galician, Mary-Lou. Handbook of Product Placement in the Mass Media: New Strategies in Marketing Theory, Practice, Trends, and Ethics. New York: Best Business, 2004. Print.

Lee, Monle, and Carla Johnson. Principles of Advertising: a Global Perspective. New York: Haworth, 1999. Print.

TV by The Numbers press release , "Apple and Pontiac Received $250,000 in Value From Product Placement in 24 Premiere ". Product Placement News. 10/4/10 <http://www.productplacement.biz/201001203319/News/Television/apple-and-pontiac-received-250000-in-value-from-product-placement-in-24-premiere.html>.