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The effect of product placement in computer

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Article in International Journal of Advertising · January 2009

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International Journal of Advertising
Volume 28, No. 3, 2009
www.warc.com

The effect of product placement in computer games on brand attitude and recall
Thomas Mackay, Michael Ewing, Fiona Newton and Lydia Windisch
Monash University

INTRODUCTION

American software sales in the computer and video game category reached US$7.4bn in 2006, an increase of 6% (Entertainment Software
Association (ESA) 2007a). Overall sales have nearly trebled since 1996 (ESA 2007a). In Australia alone, the predicted value of in-game
advertisements has been placed at AU$1.25bn (Manktelow 2005; Schneider & Cornwell 2005). As such, product placement has evolved
from the use of products as props supplied freely by organisations to a multi-billion-dollar industry driven by commercial companies
seeking new avenues to promote their brands (Delorme & Reid 1999; Nelson et al. 2004; Shea 2004). For instance, Coca-Cola recently
announced its intention to move advertising resources away from television advertising and towards video games and DVDs (Grover et al.
2004). Similarly, a multi-game deal was reached in 2006 between game developer Midway and advertiser Double Fusion, emphasising
Midway's desire to expand its use of in-game advertising (The Edge 2006).

The increase in computer/video game technology has provided marketers with the opportunity to create accurate simulations of their
products in games. Games, such as the driving simulator Gran Turismo 4 (Polyphony Digital 2005), afford highly realistic scenarios that
could be equated with a real-world 'test drive' of a particular product. Automotive marketers have shown enthusiasm for the opportunity to
allow members of the community to interact with their products in the medium of computer games (Hill 2005). For instance, the game
Porsche Challenge (Sony Computer Entertainment 1997) coincided with the commercial release of the Porsche Boxster, providing gamers
with the opportunity to drive digital representations of the car.

This paper is set out as follows. First, the extant literature on both product placements and computer games is reviewed. Next, we
introduce and explicate Ehrenberg's so-called 'weak theory of advertising', and draw on it to ground the research hypotheses. The
experimental design is then described, results presented, findings discussed and implications considered. In closing, study limitations are
noted, future research directions outlined and conclusions drawn.

LITERATURE REVIEW

Computer games are emerging as a new medium for advertising. Nevertheless, there has been relatively little empirical and independent
research examining the outcomes of marketing communications using this medium, yet there have been calls from in-game advertisement
placement agencies for empirical evidence to support the use of product placement in computer games (Enright 2007). In a study of the
effects on brand recall of product placement in games, Nelson (2002) found that 19 out of 20 participants spontaneously recalled the brand
of car they drove during the game, although recall declined to zero after a post-play delay of five months. Participant recall of the brands
featured within the game was approximately 25–30% of the brands immediately after game play, yet recall declined by more than half
when participants were retested five months post-play (10–15% recall). While these findings should be interpreted with caution given the
small sample size, high attrition rate and lack of control for regularity of play, the results suggest that recall of brand placements may not
be long term.

One of the factors that may affect recall is the prominence of the product placement. Using a sample of 46 male Australian university
students, Schneider and Cornwell (2005) found that participants were more likely to recall products that were placed in prominent positions
rather than more subtly placed products. These findings align with Lee and Faber's (2008) later results for products placed either centrally
or peripherally in an online car racing game, and with Gupta and Lord's (1998) results based on film and TV viewer responses to product
placement. Gupta and Lord (1998) found that recall was greater when products were large, placed in a central position on the screen and
integrated into the onscreen action. Qualitative research on product placement in movies has also found that consumers appreciated
realistic use of branded products, were more likely to notice familiar products and responded more favourably to brands that were used by
characters to whom they could relate (Delorme & Reid 1999).

Taking an alternative approach, Yang et al. (2006) examined the differences in brand product recall in terms of explicit and implicit
memory. The authors argued that explicit measures of in-game advertising may underestimate the power of this advertising medium, as
gamers are frequently exposed to brand placements without being consciously aware of them. Using a word-fragment task to assess
implicit memory, the authors found participants had higher levels of implicit memory for brand placement than actual brand recognition
(explicit memory).

There has also been some research examining consumer attitudes towards in-game product placements. Nelson (2002) reported that
participants were generally positive about the practice and did not perceive that it disrupted their experience of the game used in the study.
Indeed, in certain situations some participants have reported that the use of product placements enhances the realism of the game,
suggesting that the medium may add value to the gaming experience. In a later study, Nelson et al. (2004) found a positive association
between player attitudes towards product placement and advertising in general. Research examining consumer attitudes to product
placement in other media supports the contention that consumers are more positively disposed towards brand placements relative to more
traditional forms of advertising (Nebenzahl & Secunda 1993). Nebenzahl and Secunda (1993) found that product placement was rated
favourably by 70% of movie-goers, significantly higher than ratings for pre-movie advertisements.

A gap in the current literature relates to the issue of whether brand placements in computer/video games can shift pre-existing consumer
attitudes towards a specific brand. Research findings suggest a strong association between consumer attitude towards a brand (Abrand ) and
their purchase intentions (Anand & Sternthal 1990; LeClerc & Little 1997; Spears & Singh 2004).

RESEARCH HYPOTHESES

Adherents of the 'weak theory of advertising' contend that the primary role of television advertising (TVA) is brand reinforcement by
reminding existing customers to buy the brand (Jones 1996; Barnard & Ehrenberg 1997). Ehrenberg (1974) argued that consumers
typically only pay attention to advertising of brands for which they have a pre-existing favourable attitude. As such, repetitive advertising
could best be construed as a defensive strategy useful in reinforcing brand loyalty (see Ewing & Jones 2000). Further empirical evidence
was provided by Rice and Bennett (1998). These authors found that users of 'Brand A had higher awareness and more positive attitudes
towards advertisements for Brand A than non-users of the brand. And the corollary holds, too: consumers loyal to Brand B were least likely
to respond positively towards advertisements for Brand A. The exception was for consumers who liked Brand A but who had not yet
progressed to becoming brand users. These findings reinforce the so-called 'weak theory of advertising' in that users are far more likely to
respond favourably to advertisements for a particular brand than non-users. Gary Becker, 1992 Nobel Laureate in Economics, reached the
same conclusion, namely that consumers watch advertisements about automobiles (for example) even after they have just purchased an
automobile, in order to 're-enjoy' the experience of their own purchase (Becker & Murphy 1993). Indeed, the 'weak theory' holds that
advertising is typically not powerful enough to convert non-users or affiliates towards having favourable brand attitude (Abrand ) and
purchase intentions. However, it remains to be seen whether this same principle holds true for video and computer games. The aim of the
current study is therefore to examine whether product placements in computer games have a 'weak' or 'strong' effect on Abrand and
explicit memory – in this instance, brand recall. In line with the 'weak theory of advertising' it is hypothesised that:

H1a: Participants who are positively predisposed towards the brand will become more favourably disposed following exposure to the in-
game product placement.

H1b: Participants who are less positively disposed to the brand will not display a change in their brand attitude following exposure to the
product placement.

The nexus between pre-existing brand attitude and brand recall is also of interest. Based on the 'weak theory of advertising' it is further
expected that participants with positive attitudes towards a particular brand would be more likely to recall this brand than those who are
less predisposed towards the same brand.

H2: Participants randomly assigned to the experimental (Holden) group who have a pre-existing high attitude towards this brand will exhibit
higher levels of recall than participants with a low pre-existing attitude towards Holden.

METHOD

A pre-post test experimental design was used to examine spontaneous and prompted recall as well as Abrand levels of 154 Australian
university students and members of the general public exposed to either a Holden Monaro1 or an Audi A4 car embedded in a popular
computer game, Gran Turismo 4 (Polyphony Digital 2005). Participants were randomly assigned to either the experimental condition
(Holden Monaro) or control condition (Audi A4).

Measures

The Spears and Singh (2004) product attitude scale consists of five items scored on six-point Likert scales. The theoretical range of total
scores on this scale is 5 to 30. The scales ranged from (i) 1 'extremely unappealing' to 6 'extremely appealing'; (ii) 1 'extremely bad' to 6
'extremely good'; (iii) 1 'extremely unpleasant' to 6 'extremely pleasant'; (iv) 1 'extremely unfavourable' to 6 'extremely favourable'; and
(v) 1 'extremely unlikeable' to 6 'extremely likeable'.

Spontaneous recall was assessed using a single item: 'What products or brands do you remember seeing in the game?' Participants were
asked to list all car brands they could remember seeing while playing the game. Prompted recall was measured using the following
question: 'What brands do you remember seeing in the game? Please tick only the boxes that correspond to brands you clearly remember
seeing.' This question was followed by a list of the 21 different brands that appeared in the game as either cars or products placed on
virtual billboards. Sociodemographic information was collected with respect to participant age, gender, household income and occupation.

Procedure

Review and approval of study materials was obtained from the University Ethics Review Board prior to data collection. Recruitment was
undertaken using flyers distributed around a university campus and in the broader community. Potential participants were requested to
contact the principal researcher. In exchange for their participation, participants received a cinema voucher. Although the participants'
liking for playing computer games was not assessed, the recruitment process undertaken in this study clearly promoted this study as a
computer game-based experiment. Therefore, it is reasonable to assume that participants would have self-selected for this project on the
basis of enjoying playing computer games.

All testing was undertaken within the same computer laboratory and each participant completed the experiment on an individual basis.
Participation was voluntary and participants were informed that they could cease playing the game at any point. After random allocation,
participants completed a pre-game questionnaire that included a measure of Holden attitudes developed from Spears and Singh's (2004)
five-item product attitude scale. Foils pertaining to three other car brands – Mitsubishi, Toyota and Ford – were also included to prevent
participants from perceiving the purpose of the experiment.

Following group allocation, participants received basic instructions about using a PlayStation 2 controller and how to manoeuvre their game
car. During this game orientation period, participants in the Holden test condition were requested to select the 'Holden Monaro' car option
and those in the control condition (ControlAudi ) were asked to select the 'Audi A4' option. All participants were instructed to select the
colour of their game car from a palette of six colours and to then complete six circuits of the game raceway. All participants completed
three laps of the 'Super Speedway' followed by three laps of the 'Clubman Route Stage 5' track. The post-game questionnaire was
administered immediately after each participant completed their six race circuits.
Participants randomly allocated to the Holden experimental group were further sub-classified using a median split of pre-game attitudes
towards Holden. Participants with scores ranging from 5 to 17 were deemed to be less positively predisposed to the Holden brand and were
assigned to the low attitude sub-group (HoldenLow ). Conversely, participants scoring in the range 18 to 30 were classified as being more
positively predisposed to Holden and were assigned to the high attitude sub-group (HoldenHigh ).

In accordance with Tabachnick and Fidell (1996), univariate outliers (cases with standard scores greater than ±3.29) were identified within
each group and checked for entry errors. As cases with extreme values have the potential to unduly influence the outcomes of the planned
analyses, those identified as univariate outliers were deleted to improve the skewness and kurtosis of scale distributions. A total of five
outliers were removed, leaving a reduced total data set of 149 cases. Within the experimental condition, 25 participants were classified into
the HoldenLow sub-group and 63 into the HoldenHigh sub-group. A total of 61 participants were randomly assigned to the control condition
ControlAudi . Consenting participants completed a pre-game questionnaire designed to assess their attitude towards specific car brands, and
were classified as either low (HoldenLow ) or high (HoldenHigh ) pre-test attitudes towards Holden cars.

RESULTS

The demographic data for participants in the current study are shown in Table 1. One-way analysis of variance (ANOVA) analyses were
used to test for differences across the three participant groups: HoldenLow , HoldenHigh and ControlAudi . The participant groups were similar
with respect to age and income classification. A chi-square analysis was used to explore gender representation across the three participant
groups. An adjusted residual greater than 1.96 was indicative of a significant deviation from independence (Agresti & Finlay 1997). The
results indicated that males and females were not significantly differently represented across the three groups.

Table 1: Demographic characteristics of participants by group

The results of independent sample t-tests indicated that, for the mean pre-test Abrand , the HoldenLow group scored significantly lower on
the Holden and Ford compared to the HoldenHigh and the ControlAudi groups, and lower on Mitsubishi compared to the ControlAudi group.
The HoldenHigh group also scored significantly higher on Holden when compared to the ControlAudi group (table not shown).

The results of the repeated measures t-tests for each participant group are outlined in Table 2. Overall, the mean Holden Abrand scores of
participants assigned to the experimental Holden Monaro group did not increase after exposure to the simulated computer game. However,
when examined within the sub-classification groups based on pre-existing Holden attitudes, the mean attitude scores of HoldenLow
participants (n = 25) increased significantly after playing the computer game (15.48 to 17.68, p = 0.002). Participants sub-classified as
HoldenHigh (n = 63) showed no significant change between pre- and post-play. Somewhat unexpectedly, the mean Toyota Abrand scores of
the HoldenHigh participants declined significantly after playing the game (21.98 to 21.19, p = 0.001). Control group participants randomly
assigned an Audi car showed no significant differences in Abrand for either the Holden or foil brands (Ford, Mitsubishi, Toyota).
Table 2: Repeated measures t-tests for A brand differences by group

Chi-square analyses were used to examine group differences with respect to unprompted and prompted recall of Holden Monaro cars (see
Table 3). Participants sub-classified as belonging to the HoldenHigh group (n = 51, 65.4% of the sample) were significantly more likely to
display unaided recall of the embedded brand (Holden Monaro) than participants sub-classified as HoldenLow (n = 18, 23.1% of the sample)
and participants assigned to the ControlAudi group (n = 9, 11.5% of the sample). Both HoldenLow (n = 22, 22.9% of the sample) and
HoldenHigh (n = 58, 60.4% of the sample) group participants were significantly more likely to recall the embedded brand (Holden Monaro)
when prompted than control group participants (n = 16, 16.7% of the sample).

Table 3: Unaided and prompted recall of the 'Holden Monaro' car brand by group

DISCUSSION

The findings of the current research do not support H la in that participants with a pre-existing positive attitude (HoldenHigh ) towards the
embedded product (Holden Monaro) did not show increases in their brand attitudes after exposure to this brand during their computer
game-play. These findings are not consistent with the 'weak theory of advertising' and may indicate that this theory does not currently
transfer to emerging advertising mediums such as product placement in computer games.

Since HoldenLow participants (those who were less positively predisposed to the embedded brand) displayed significant increases in their
A brand , no support was found for Hlb . These somewhat counterintuitive findings paradoxically suggest that active brand placements, where
the branded product forms a natural part of the game-play, may provide marketers with a means of converting player attitudes towards
the embedded brand product. These findings do accord somewhat with the results from Cowley and Barron's (2008) study of prominent
product placement in a television programme medium. Participants who reported a high liking for the sitcom Seinfeld, while being able to
better recall the brands after exposure to the prominently placed brands within the television programme, reported reduced Ahmnd.
Conversely, participants who reported lower levels of liking of Seinfeld were not as likely to recall the product placement, but subsequently
reported increased Abrand . Caution is needed, however, in generalising these results. First, additional research is required to determine
whether these findings generalise beyond tertiary students. Second, and perhaps more important, it remains to be seen whether the
current findings will be temporally stable or an artefact of the relative newness of the medium. The 'weak theory of advertising' suggests
that television advertising provides companies with a means of 'preaching to the converted' and is therefore useful in reminding current
users of a brand why they like it. But the converse also holds: non-users of the brand are less likely to be affected by television
advertising. The key issue in relation to active product placement in computer games is whether the ability to convert consumer attitudes
represents a transient phenomenon that will dissipate once the marketplace is saturated with interactive product placements or whether the
embedded and seamless nature of the brand placements will protect against media 'wearout'.

Support was found for H2. Experimental group participants classified with pre-existing high positive attitudes towards the embedded brand
product displayed significantly higher levels of both spontaneous and prompted recall than experimental group participants classified with
low pre-existing attitudes towards Holden cars (HoldenLow ). These findings align with those of Nelson (2002), Nelson et al. (2004) and
Schneider and Cornwell (2005), and indicate that interacting with a product while playing a computer game increases an individual's ability
to recall that item when prompted.

It is important to note the practical implications arising from the findings of the current study. Blattburg and Deighton (1991) have
recommended that marketing managers develop bifocal strategies aimed at acquiring new consumers and retaining existing consumers.
The current findings suggest that computer games are an excellent medium to pursue both these goals. Future research is required to
examine the utility of multifaceted marketing campaigns whereby traditional mass-media communication is used as a 'defensive'
mechanism to retain consumers and reinforce brand loyalty, while product placement within computer games is used to recruit new
consumers to the brand. For example, a television advertisement for a brand may be formulated to 'remind' users of the brand without
making any comparisons to rival brands or attempting any other form of brand communication. Simultaneous product placement in
computer/video games likely to be purchased by the brand's target demographic would enable prospects to interact and experience the
brand in a virtual environment. The game could also be designed to alert prospects to the benefits of the embedded brand over rival
brands.

The inclusion of the control condition served to test whether merely playing a simulated computer car game could influence Abrand scores.
The finding of no significant change to Holden Abrand among participants in the control condition (ControlAudi ) suggests that the change in
Holden Abrand scores among the HoldenLow and HoldenHigh conditions are the result of the intervention and are not spurious.

LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCH

As with all research, the current study was not without limitations. First, the sample sizes were modest and would benefit from increased
sizes for each of the treatment groups. As such, caution is required in extrapolating the findings to larger and more diverse populations.
Future research would benefit from including a more diverse sample of participants, particularly those with higher levels of discretionary
income. This type of study would enable an examination of the power of computer game product placements to influence purchase
intention (PI). It is important to note that PI is a distinct construct from Abrand and is thought to be a more powerful predictor of consumer
behaviour (Spears & Singh 2004).

In terms of the methodology, consideration should also be given to the manner in which the pre-testing of Abrand in relation to the Holden
brand may have acted as a primer for recall. Although the present study made use of foils (Ford, Toyota and Mitsubishi) in an attempt to
control for this effect, this may nonetheless have influenced the study's results.

Given the nascent nature of the use of computer games as a medium for product placement, further research is required to identify ways
to maximise communication channels between organisations wishing to embed a product, and computer game designers. Of particular
import is obtaining the right balance in relation to creative control, which must now embrace not only the 'wants' of the consumer but also
those of large advertising agencies or organisations. Empirical research is also needed to examine brand recall and changes in Abrand with
respect to purchase intent. This is a crucial area of research as it could be argued that non-users of Holden brand cars would be unlikely to
purchase or play a computer game that featured only this brand. By extension, this would reduce the potential for changes in Abrand to
occur. An examination of implicit memory processes would be of use in this particular regard. Future research is therefore needed to
ascertain the efficacy of computer games that feature numerous other brands yet still ensure that players are 'forced' to use a specific
brand at designated stages. For example, a car-racing simulation may include different scenarios to further the progress of the game, one
of which revolves around using only a particular brand of car (the one deliberately placed by the marketer). Another way to direct
exposure towards the brand is to make sure that it is offered as one of two options for the player and that it is clearly superior to the other
choice. This would ensure that players used the brand, and would also create an illusion of choice. The planned standardised metric being
devised by Activision (Nasdaq: ATVI, 2004) and Nielsen Entertainment will provide future researchers with a more definitive mechanism to
evaluate the level to which exposure to in-game product placements impacts on player behaviour.

CONCLUSION

Computer/video games are emerging as a potentially powerful medium for marketers to use as part of their marketing communications
activities (see LoPiccolo 2004; Chambers 2005; ESA 2007b; Informa Telecoms and Media Group 2006; Molesworth 2006; Nelson et al.
2006). The findings of the current study suggest that this medium shows promise in assisting marketers in changing attitudes towards
brand placements that form an active part of the gamer's play experience. It is possible that, in the near future, the practice of product
placement within entertainment programmes may be used to specifically target elusive consumer segments with brand communications
seamlessly woven into near real-life simulations, designed to remind consumers that a brand exists as well as providing a means of
interaction. Such advances will broaden the range of product categories that can be used interactively during game play and therefore
enhance the capacity for marketers to foster positive brand attitude dispositions among players with a pre-existing low attitude towards the
embedded brand product.

ENDNOTE

1. The Australian-designed and manufactured Holden Monaro is currently marketed as a Pontiac GTO in North America.

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ABOUT THE AUTHORS

Thomas MacKay completed his honours degree in the Department of Marketing at Monash University in 2005. He currently works as a
project manager for the consumer sector of Taylor Nelson Sofres in Melbourne.

Michael Ewing is Professor and Head of the Department of Marketing at Monash University. His research interests include advertising
evaluation, the technology – communications interface, health promotion and brand management. His work has appeared in Information
Systems Research, the Journal of the Academy of Marketing Science, Journal of Advertising Research, Journal of Advertising, Journal of
Business Research, International Journal of Advertising, Business Horizons, the Journal of Small Business Management and Industrial
Marketing Management.

Fiona Newton completed her PhD in psychology before joining the Department of Marketing at Monash University to pursue her interest in
health promotion and behaviour change communication. Fiona's research has examined the psychosocial well-being of prostate cancer
patients, rural men's health issues, and HIV/AIDS health promotion. Her work has been published in the International Journal of
Advertising, British Journal of Urology, Australian Journal of Rural Health and the International Journal of Urology.

Lydia Windisch is currently completing her doctoral thesis in psychology and is a Research Fellow in the Department of Marketing at Monash
University. Her research covers cross-cultural and indigenous psychologies, social and health promotion, and public policy.

Address correspondence to: Professor Michael Ewing, Head of Department of Marketing, Monash University, PO Box 197, Caulfield East, Vic
3145, Australia.
Email: mailto://Michael.Ewing@BusEco.monash.edu.au

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