April 17th, 2008
NBC Puts Product Placement Online
By Stuart Elliot
The New York Times
NBC Universal is moving ahead with ambitious plans for digital programming that involves brands and products, by teaming up with units of the Omnicom Group.
Omnicom is the world’s largest owner of advertising agencies by revenue; its holdings include the Arnell Group, BBDO Worldwide, DDB Worldwide, TBWA Worldwide.
The agreement with the new Digital Studio division of NBC Universal involves an Omnicom unit known as Omnicom Media Group Digital, which will work with siblings like Davie Brown Entertainment and OMG Entertainment and Sports.
“There’s a lot of innovation to be done with episodic content online,” said Matt Spiegel, chief executive at Omnicom Media Group Digital. “Brands want to connect content with brand messaging.”
The integration of brands and products into episodes of digital series is no less fraught with pitfalls than is branded entertainment created for television series or movies.
Many advertisers that pay big bucks to have products written into scripts or included in reality shows want their brands featured in prominent, positive ways.
But if the inclusions are perceived to be intrusive, or obtrusive, they can be counterproductive by turning off viewers who then change channels or click away to another Web site.
“That’s why we’re partnering with NBC,” Mr. Spiegel said. “We’ve got confidence they will know how to mingle the two.”
The Digital Studio is being refocused on the network side of NBC Universal after being on the corporate side of the organization chart.
Along with the news of the Omnicom Media Group Digital being signed as the first strategic partner, the Digital Studio also announced on Thursday the hiring of additional executives and details about its initial two productions.
One production, “Gemini Division,” is scheduled for the summer and episodes will appear on NBC Universal digital properties. The first brands to be involved in the series are Cisco, Intel, Microsoft, United Parcel Service and the Acura TSX sold by American Honda Motor.
The other production, “Woke Up Dead,” is in the preliminary stages and there is no information about potential branded-entertainment partners.