The bigger the industry, the more influential it is in affecting public opinion, consumption patterns and consumer behavior. Given such a pervasive nature of industry impact, it is all the more relevant that its business practices are scrutinized for fairness and ethics. The best way to do this is to study the regulatory framework within which the industry operates and the factors affecting regulations in the first place (Russell & Belch, 2005).
The two primary decision makers in the industry are the placement agencies and content producers. To gain a better understanding of ERMA in particular and the industry in general, a survey was conducted in 2003 by James Karrh and his team. This survey gives us a sense of where the industry is presently and what could be expected in years to come. One of the key areas of discussion is the blurring of distinction between a) content created for purposes of information dissemination and b) content created for purposes of persuasion. With respect to regulation, these two content categories in and of themselves does not invoke introspection and debate. Where regulations apply, quite rightly so, is in cases where “persuasion/propaganda” is integrated into a façade of “information”. When this happens, what we see is an act of sophisticated deceit. Given the far-reaching implications of such a phenomenon comprehensive research is warranted. As a result, these days, the research is extended to the study of “cognitive-response, attitudinal-formation, and involvement perspectives, etc.” (Moorman, et.al., 2005)
Content that has the potential to reach a large audience (for example movies) is an attractive medium for brand promotion. The product-placement industry’s success is attributable to this “integrated marketing communication” approach. In the words of an industry analyst,
“the impact of product placements and other integrated marketing strategies can be conceptualized as a ‘consumption constellation’ whereby ‘symbolic interdependencies’ of products, brands, or activities come to signify or perform social roles for audience members who use or avoid these products as means of gaining status or avoiding stigmatization.” (Karrh, et.al., 2003)
Advertising agencies found this synergy a very attractive proposition. The members of the industry and their sponsors were determined to keep open these lucrative opportunities. This explains why no amount of regulation ever seems to bring desired results (especially in the United States). More importantly, for every bill that gets ratified in the Congress, many more don’t see the light of day (Katz, 1993).
There was an interesting study published previously in the year 2001, again by James Karrh and his team. A sample of college going film enthusiasts in the United States, France, Austria and Singapore were polled on their “views on the acceptability and ethics of placements.” A majority of American participants saw placements as a form of paid advertising (not many saw it as a medium of creative expression). This is an expected response, as anyone with basic education and little common sense would have figured the real proposition of product-placements (Charlesworth & Glantz, 2005). But more significantly, a majority of American subjects stated that they were less concerned with the ethical aspects of placement and don’t care if proper regulations and restrictions are imposed by the government. They were also more open to buying products placed in the film compared to subjects from other countries. We can trace the link between the three components of policy making: public pressure/support, response from legislators, regulations pertaining to commercial activities. In this particular case, weak pressure from public led to complacent repose from legislators, which in turn led to commercial exploitation and opportunism. But this is not the complete story. After all, the survey was confined to one community (college students) and one age-group. So, inconclusive as the r results may be, it is an indicator of the general tendency (Karrh, et.al., 2003).
Surveys were also taken with members of the product-placement industry as participants. When asked about the public debate over the ethics of this practice, the responses were diverse but none too encouraging. The following some of the opinions expressed: