Draft:Virtual Product Placement

Virtual Product Placement (VPP) is an advertising technique that digitally places branded objects or advertisements into a movie or TV show scenes. Despite being a billion-dollar industry, current advertisement rendering techniques are time-consuming, costly, and executed manually with the help of visual effects artists, so it is quite problematic to add high-quality VPP inside a scene. For example, an espresso machine company might use VPP to add one of its products to the background of a cooking influencer’s.. Unlike traditional product placement — which involves filming or photographing physical products during content production — virtual product placement is part of the post-production process. This means content creators aren’t directly interacting with advertised products, but it also makes VPP more flexible than traditional methods.

History

The concept of inserting products into media after its creation has evolved alongside advancements in digital technology. While traditional product placement has a long history in film and television, virtual product placement represents a more recent and technologically sophisticated approach.

Early concepts and experiments (1990s–2000s)

• Early experiments with digital insertion technology began in the late 20th century. These were often rudimentary, involving simple overlays or limited object tracking.
• The development of computer graphics and video editing software laid the groundwork for more advanced VPP techniques.
• Early examples were often seen in sports broadcasts, where digital billboards or advertisements were overlaid onto the field or stadium.

Technological Advancements and Growth (2000s-2010s):

• The rise of digital video and streaming platforms created new opportunities for VPP.
• Advances in computer vision, object tracking, and augmented reality enabled more seamless and realistic product insertions.
• Companies began developing specialized software and platforms for VPP, streamlining the process and making it more accessible.
• Early companies began to appear offering systems to do this work.

The streaming era and mainstream adoption (2010s–present)

• The proliferation of streaming services and on-demand video content accelerated the adoption of VPP.
• Platforms like Netflix and Amazon Prime Video began exploring VPP as a way to monetize their content and provide targeted advertising.
• Live sports broadcasts embraced VPP to enhance viewer engagement and create new advertising opportunities.
• The rise of AI, machine learning, and computer vision allowed much more accurate and realistic insertions of products into media content.
• The metaverse and virtual worlds are now making VPP a key part of advertising strategies.

Future usage

• Augmented Product Placement: With AR glasses, brands can create virtual products that users can interact with in real-world settings.
• Interactive Product Demonstrations: While browsing a store or inside a store, AR glasses could overlay virtual information about products, including 3D models that you can manipulate or try.
• Enhanced Entertainment Experiences: During a live sports event, AR technology could be used for displaying: virtual statistics, player information, and even branded content onto the field of play(like why this shoe is better and should be bought).

Types of Virtual Product Placement

Static Virtual Product Placement (sVPP)

Inserting a product into a fixed location within a scene, digitally after production. This type of placement is similar to traditional product placement but is added during post-production. It can be used to add products that weren't present during filming or to replace existing products with different brands or versions.

Dynamic Virtual Product Placement (dVPP)

Inserting products that can change based on factors like audience demographics, contextual relevance, and real-time updates, often driven by AI and data analysis. Machine learning algorithms analyze viewer data to determine the most effective product placements, which can include real-time bidding systems where advertisers compete for placement opportunities. For example, a streaming service might show different products to viewers based on their location or viewing history.

Interactive Virtual Product Placement (iVPP)

This type of virtual product placement allows viewers to interact with the virtual products. For example, using Augmented Reality or Virtual Reality, viewers could see additional information about the product or even try it out. This can also include gamification elements where viewers earn rewards or discounts by interacting with the products.

User-Defined Virtual Product Placement (udVPP)

A system where the end-user has some control over the products placed within the media they are viewing, through preferences or direct selection. This approach considers user preferences and ensures that placements do not disrupt the viewing experience. For example, a viewer might choose to see products from their favorite brands or opt-out of seeing any product placement, or in case if a child is watching some show then all alcohol could be changed to some juice

Benefits and considerations

Benefits

• Non-intrusive advertising: VPP can blend seamlessly into content, reducing viewer annoyance.
• Targeted reach: It allows for precisely targeting specific demographics, countries, or consumer behavior.
• Increased brand visibility: It can enhance brand awareness and memorability.
• Flexibility: It allows for post-production adjustments and updates.
• Localization: VPP allows the presence of small companies inside global content, For example, a small local pizza shop could be displayed during the Olimpic game translation

Considerations

• Risk of audience backlash: Poorly executed placements can damage brand perception.
• Authenticity concerns: Viewers may perceive placements as inauthentic or manipulative.
• Measurement challenges: Accurately measuring the effectiveness of VPP can be complex.
• Ethical considerations: Issues of transparency and potential manipulation appeared with a lot of generated content, and some governments try to regulate it: Digital Services Act, Marco Civil da Internet.
• Product visibilities: The product could be present on the frame, but it could have a small size or be unrecognizable

References

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Categories:

• Advertising
• Advertising by medium
• Computer vision
• Digital marketing
• Digital media
• Marketing techniques
• Online advertising
• Online advertising methods
• Promotion and marketing communications