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How to: Product placement on Instagram
Product placement is a common marketing technique. But while just a few years ago, products were more commonly placed in traditional media, such as movies or television, today, many advertisers mainly rely on social media. These newer channels offer a more dependable and significant way to increase both brand awareness and audience loyalty.
Two women promote a makeup palette
Product placement is a popular and effective way to promote products. It increases your brand’s visibility, providing a welcome alternative to the structure of traditional advertising tactics.
Due to these advantages, it is now a $23 billion business and growing. As a result, social media platforms themselves have already developed features that allow product placement and direct links to web stores.
There are clear benefits, but there are also clear risks.
The truth is that marketers walk a fine line when it comes to product placement. On the one hand, it must be clearly labelled as advertising and declared to avoid accusations of surreptitious promotion. On the other hand, subtlety is the crown jewel of persuasion, as it increases viewers’ likelihood of buying a product.
The definition of product placement
Various definitions of product placement can be found in the scientific literature. But the term was most accurately described by Mallick, who referenced profit-making in his definition. He describes product placement as “the targeted and deliberate placement of products and services, brands, company names, company services, and categories of goods and services in the editorial section of a mass medium, especially in broadcasting, mass-communication telemedia, the press, and motion pictures, with the aim of generating economic profit” (Mallick 2009: 31).
What is paid product placement in movies/films?
Product placement in film is when a product or brand name is shown or spoken about during a feature. Choosing product placement is often part of the creative decision-making process for the project, and these ads may contribute significantly to financing.
PS Welt, for example, published the pertinent headline: “James Bond is actually a car salesman” because the British car manufacturers Aston Martin and Jaguar Land Rover are regular suppliers of the world’s most famous secret agent. In fact, James Bond films featured around 5 product placements in the 1960s. Now, over 30 brand logos are featured in each James Bond movie, from alcoholic drink brands to Aston Martin. Other big-budget films like the Superman franchise's Man of Steel raised $160 million dollars from product placement deals.
This further cements the idea that product placement is not a new marketing strategy. The 1982 blockbuster E.T. the Extraterrestrial gave it a significant boost, and Home Alone, Back to The Future, and Cast Away also deserve to be mentioned in this context.
Yet we can go even further back—Coca-Cola first used product placement in the 1916 film The Mystery of the Leaping Fish. It's no surprise that Coca-Cola continues to use product placement in modern TV programs like Breaking Bad.
Nowadays, digital editing technology means that these are often virtual product placements that can be edited and changed in post-production. This allows "product displacement" if a brand dislikes how it was featured in a film.
In this context, transparency is rather lacking because viewers usually do not receive any information about whether the majority of product placement is paid or unpaid. Even the most blatant product placements come without a specific warning.
Broadcasters are legally required to display the “P” logo for a duration of three seconds at the beginning and end of programmes, as well as after any commercial breaks where paid brand references are included.
There are some UK rules, however. Ofcom has stated that baby milk cannot be promoted through product placement. In addition, children's TV shows and news programs cannot feature products.
Still, never has it been more attractive (and necessary) to rethink one’s marketing strategies, especially for brands hoping to reach younger demographics. While streaming programs are gaining popularity, traditional TV and print ads are losing relevance as consumers increasingly avoid these forms of media.
What does product placement mean on Instagram?
Product placement on Instagram is a form of influencer marketing in which a brand pays social media influencers to promote their products.
How does it work?
Product placement is a form of advertising that a brand must pay for, just like any other. However, few brands can afford to feature their products in big cinema productions or even music videos.
Working with influencers is a great way to enjoy the benefits of product placement on a popular channel. While it may not be a Superman movie, the reach is still high, and the costs are more flexible.
At the top end of the market, there are celebrity influencers like Kylie Jenner. According to Market Watch, Jenner may well earn more from one Instagram post than some do in their entire lifetime. She is reported to have received $1.27 million for her makeup collab with the Grinch movie in November 2020. Considering that by May 2022, the post had been viewed more than 1.6 million times, that wasn’t a bad deal (ROI not calculated in detail here).
As shown, celebrities are suitable for these collaborations, but their engagement rates are often low. This is a key value for brands, as it shows how many people truly interact with the content through likes, comments, shares, and saves. It's similar to whether someone is watching a film at the cinema versus at home in the background while they text friends.
These engagement rates are typically significantly higher with influencers who are popular in a niche, especially nano- and micro-influencers. Working with these smaller names can even be cost-free through affiliate links, although long-term collaborations are often more fruitful.
The legal standpoint: Benefits, advantages, and risks of product placement
The website TrendHero describes product placement as "hidden advertising". This is because influencers and directors integrate products naturally into their normal content.
It is highly effective, and it has even been shown that “advertising that doesn’t look like advertising works best.”
Is product placement legal in the UK?
Product placement is legal in the UK, but it must adhere to specific regulations. Typically, ads must be labelled and follow regulations.
So, how does this "hidden" form work?
From a legal standpoint, surreptitious advertising is the promotional use or mention of products without clearly indicating it as advertising.
On Instagram, this is not legal. It is now common to either mention that a post is an ad or to make users aware by including the phrase “supported by [brand name]” at the beginning of a video or under a post.
However, there are different laws in the United States and Europe. In the UK, laws are established by the Advertising Standards Authority (ASA) and the Competition and Markets Authority (CMA). Influencers are required to clearly indicate when their content includes product placement, using labels such as #ad or #sponsored to ensure transparency. The content must be honest, truthful, and not misleading. In action, that means sharing genuine opinions about the products being promoted rather than lying to please the sponsoring brand. Additionally, the content should be socially responsible, avoiding the encouragement of unsafe or inappropriate behaviour.
The CMA also mandates that influencers disclose any commercial relationship with brands, including receiving free products, payments, or other incentives. These disclosures must be clear and prominent, ensuring viewers understand the commercial nature of the content without needing to click to see more. Failure to comply with these regulations can result in content removal, fines, or other legal actions.
For example, fashion blogger Alexandra Stedman has been clearly indicating advertising for quite some time. She uses her slides to alert users that a post contains an advertisement and also marks her content with “AD,” which stands for "advertisement." This creates transparency and increases credibility. However, this is not a subtle use of product placement.
Why product placement is important?
The study “The effectiveness of brand placements: A meta-analytic synthesis“, posted by the International Journal of Research in Marketing, proves, however, that product placement significantly influences product awareness and positive attitudes towards a product. Recipient research shows that the more subtly a product is placed or used, the better.
In the Netflix series Lupin, for example, the mastermind wears various rare Nike shoe models. It works in two ways. First, it enhances our image of the main character, Assane Diop, played by Omar Sy. Second, it promotes the much-hyped sneakers, associating them with this cool fictional character.
As noted in Lupin, James Bond, and Superman, the ad must be placed in content that is aspirational for the brand's target audience. That's why, in influencer-led product placement campaigns, finding the right influencers who are capable of inspiring action is essential.
Searching for influencers with an audience that matches your demographics is no walk in the park. Once you have found influencers who match your brand, you must ensure their audience is credible and engaged.
However, there is a way to complete this task in minutes. By using Kolsquare's influencer platform, you can quickly search through a database featuring every influencer with over 5,000 followers. Search by keywords, filter by your requirements, and message influencers capable of launching successful campaigns with just a few clicks. From there, you can manage and gain reports on the entire campaign on one platform.
Try a Kolsquare demo free of charge today.
The best practices for companies using product placement on Instagram Shopping
Brands hoping to make an impact through product placement on Instagram should leverage its brand-friendly features. Instagram Shopping offers lucrative opportunities for brands to promote products and is a useful tactic for striking a balance between content and advertising. However, the products should be shown in an optimal light, and an appealing web store is crucial to increasing sales.
The product catalogue must also be attractively designed and regularly updated. Each product should be described in detail and presented aesthetically. It is important to keep just one catalogue.
If you have several at the moment, you can simply merge them. This also applies if you have two different catalogues on Instagram and Facebook. This gives users and potential buyers a better overview of what your brand has to offer. It’s also easier to maintain, as prices and inventory should be reviewed regularly and revised accordingly. Catalogue fields such as product names, descriptions, and categories are also essential.
Instagram offers a guide for your product catalogue, which is a basic tool for your Instagram store. Pro tip: First, create a Business Manager account to help you manage assets on Facebook and Instagram. Then, link the catalogue to your account.
The product tagging feature allows you to set up a direct link to your products in Stories, Reels, Lives, posts, and mentions. Consequently, those who are interested can instantly find out more with just one click.
Instagram data from 2021 suggests that at least five bookmarks a month can increase product page views and, therefore, sales.
In its research, Fast Company states, “Even though advertisers should use this tool from Instagram, it is still important to mention that viewers are most influenced by product placements when the product or brand name is only mentioned but not shown.”
It is also advisable not to jump in with the gun. The more followers are immersed in a story, the more receptive they will be to product mentions or links. This plays to the influencer’s advantage in particular since followers already have an emotional relationship.
Product placement advertising opportunities: What are the three main types of product placement?
Product placement in films/media and on Instagram can be broken down into three basic types. Each one has a unique effect on the viewer.
Here are the most common forms of product placement:
Classic or Screen Placement
Classic placement integrates the real product directly into the visual content of a film, television show, or social media post. The product is often shown being used or placed prominently within the scene to ensure it is clearly visible to the audience. However, the characters do not directly reference it.
For example, a character drinks from a Coca-Cola can during a movie scene or a TikTok video without mentioning the brand.
This technique is subtle and effective. It associates the brand with the influencer/character who is using the product.
Verbal or Script Placement
This occurs when the product or brand is mentioned verbally within the dialogue of a film, TV show, or social media content. It integrates the product into the storyline through dialogue, making it part of the narrative. For example, an influencer or character discusses a particular restaurant they visit, such as Pizza Hut or The Ivy. This technique is more overt and makes the mention more memorable.
Plot Integration or Placement
This is a more immersive form of product placement where the product or brand becomes an integral part of the storyline. The product is essential to the plot and often plays a key role in the narrative's development. For example, an influencer or character goes shopping at the brand's store.
This is the most overt technique. It strengthens the audience's emotional investment in the story, enhancing recall and association. In addition, it can make the location or brand meme-worthy.
Product placement strategy examples on Instagram
Many brands, especially those in fashion and beauty, subtly include their products in influencers' content.
Here are a few examples of product placement on Instagram:
ASOS’s Collaboration with Influencers
ASOS, a UK-based fashion retailer, frequently collaborates with fashion influencers to highlight their clothing and accessories. Influencers post photos and videos wearing ASOS products, often tagging the brand and using popular hashtags to increase visibility.
In this post, mega-influencer Sofia Coelho shares a video of her holiday in Mykonos. In the video, she is wearing only clothes bought from ASOS.
Dyson’s Partnership with Beauty Influencers
Dyson partners with beauty influencers to promote their hair styling tools, like the Dyson Airwrap. Influencers create tutorial videos demonstrating how to use the products, often highlighting the innovative features and benefits.
This post by macro-influencer Cami Sophia shows her routine at the start of a new month. Part of that routine features the Dyson Airwrap, which is tagged in the post.
About Kolsquare
Kolsquare is Europe’s leading Influencer Marketing platform, a data-driven solution that allows brands to scale their KOL Marketing strategies and implement authentic partnerships with KOLs (Key Opinion Leaders). Kolsquare’s technology enables marketing professionals to easily identify the best Content Creators profiles by filtering their content and audience, and to build and manage their campaigns from A to Z, including measuring results and benchmarking performance against competitors. Kolsquare has built the largest community of influencer marketing experts in the world, and offers hundreds of customers (Coca-Cola, Netflix, Sony Music, Publicis, Sézane, Sephora, El Corte Inglés, Lacoste, …) the latest Big Data, AI and Machine Learning technologies to drive inspiring partnerships, tapping into an exhaustive network covering 100% of KOLs with more than 5,000 followers in 180 countries on Instagram, TikTok, Twitter, Facebook and YouTube. As a Benefit Company, Kolsquare has been pioneering Responsible Influence by championing transparency, ethical practices, and meaningful collaborations to inspire change.
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