The Effect of Product Placement Marketing on Effectiveness of Internet Advertising

Compared to the traditional way of doing advertising, such as ad Banners, internet product placement is now emerging as a promising strategy for advertisers to do their job effectively in this Web 2.0 era. Therefore, this study focuses on the effectiveness of product placement advertising on the Internet. The results show that product prominence (Subtle or Prominent) and presentation of the advertising (Video or Images) significantly impacts the effectiveness of product placement advertising on the Internet, including brand impression, advertising attitude, and intention to click. Product prominence and presentation of the advertisement have an interactive impact. Our findings indicated that presenting the product through videos will enhance higher levels of advertising attitude, brand impression, and intention to click than presenting it through still images. Subtle placements will increase the level of advertising attitude and intention to click more so than prominent placements. But prominent placements increase the brand impression more than the subtle placements.