Brands including Coca-Cola, Sony, Reebok, and Lacoste generated a combined $27.4m in brand placement value from Netflix’s fourth series of Stranger Things so far, new data has revealed.
YouGov Stream found Coca-Cola had the highest placement value of any brand in the latest series of Stranger Things with $3.4m. Its highest performing asset was a can of co*ke, coming in at $1.7m, then a bottle with $711,000 and a fountain cup at $466,000.
This would seem to mark a step-change to Netflix’s previous paid placement strategy as Tom Harrington, head of television at Enders Analysis highlighted that in supplementary written evidence to the Digital, Culture, Media and Sport Select Committee in October 2020, the streaming giant said: “If a brand is featured or seen in content, it does not mean that Netflix, the producer or the creator has been paid. To date we’ve rarely been paid and we keep paid placement to a minimum”.
In this evidence, Netflix added that it was an ad-free service and creators of shows or films could choose to include brands in their stories “if this strengthens the overall storyline or adds to its authenticity.”
It also clarified that under the Audio-Visual Services Media Directive, any instances of paid product placement in programmes it produced or commissioned are “disclosed to the viewer by means of clear labelling.”
Harrington explained: “Generally streaming seems behind in monetising product placement (ITV, for example, are very active in the space), probably because up until six months ago the purer the streaming experience (no ads, easy cancellation, singular revenue stream with no traditional broadcast assets to worry about etc) the more positive the reaction from the market.
“This perception has been flipped now and suddenly there is a rush towards launching ad tiers and experiments with other potential revenue streams, likely including product placement deals and content sponsorship.”
Coca-Cola’s valuation in the latest series of Stranger Things was almost six times that of rival brand Pepsi who also had placements in the show valued at $586,000 across the UK and US.
Other soft drink brands like 7UP, Sprite and Dr Pepper had brand placements valued at $145,000, $70k, and $50k respectively.
Sony and Reebok and also saw “high performance value” in both the UK and the US with $2.4m each.
Meanwhile, Lacoste’s value came exclusively from one character, Jason Carver played by Mason Dye, wearing one of their shirts during the entire second episode. This was valued at $2.3m and audience insight from YouGov showed there was an equal gender split between male and female during the episode (49% vs 51%), and an overall skew towards millennials rather than Gen Z (33% vs 27%).
YouGov also calculated a total UK and US audience for the Duffer Brothers’ show of more than 0.6bn.
Another character, Max Mayfield, played by Sadie Sink, was revealed to be the most popular with brands, driving more than $5m in net placement value for Sony ($2.4m), Vans ($1.4m), Hang Ten ($1.2m) and Swatch ($200,000).
YouGov Stream also revealed the most favoured episode for placements among brands was the final ninth episode of the season which featured more than 35 different brands during its two-and-a-half-hour run with $7.3m in placement value.
This research comes as Netflix is launching an ad-supported tier in early 2023 afterconsecutive disappointing quarters with subscriber losses.
Dominic Prince, associate director of product at YouGov, said of the findings: “What we’re seeing in this data is an extremely healthy return provided by Netflix for the brands featured in Stranger Things. co*ke, as reportedly the largest buyers of product placement in the show, will be happy with over $3.4m in advertising value driven by their efforts in the UK and US. As will the likes of Reebok, Sony, and Jif Peanut Butter.”
He added that audience figures for the show would only continue to grow over time, and consequently so would the valuations of its brand placements.
Such analysis is in line with predictions that major streaming properties could become the “Super Bowl of advertising“.
Prince highlighted: “It’s also important to look at this data in the context of the broadening push by SVOD services to offset production costs by creating new revenue streams. Our total valuation of $27.4m demonstrates the value that this media can generate for brands. A blue-chip streamer like Stranger Things is effectively a marketing tool with monumental reach for brands looking to target even the most stubborn, ad-averse consumers.”
FAQs
Brands including Coca-Cola, Sony, Reebok, and Lacoste generated a combined $27.4m in brand placement value from Netflix's fourth series of Stranger Things so far, new data has revealed. YouGov Stream found Coca-Cola had the highest placement value of any brand in the latest series of Stranger Things with $3.4m.
What product placement is in Stranger Things? ›
“Stranger Things,” set in the fictional town of Hawkins, Indiana, in the mid-1980s, is chock full of homages to the era and is beloved, in part, for the nostalgia it evokes. Episodes are peppered with appearances from brand names like Cadillac, Chevrolet, Casio, 7-Eleven, Nike, Adidas, Schwinn, Burger King and more.
How does Netflix use product placement? ›
Verbal placement: the product is named, but the actors do not interact with it. Passive placement: the product is part of the background set of the series, but nobody uses it or names it. Active placement: the characters interact with the product.
What does "this program contains product placement" mean? ›
March 2022) Product placement, also known as embedded marketing, is a marketing technique where references to specific brands or products are incorporated into another work, such as a film or television program, with specific promotional intent.
How to do brand placement? ›
Types of Product Placement
- Visual Placement. This type of product placement is all about putting the product or brand right in front of the audience's eyes within the content itself. ...
- Verbal Placement. ...
- Virtual Placement. ...
- Audio Placement. ...
- Integration Placement.
Brands including Coca-Cola, Sony, Reebok, and Lacoste generated a combined $27.4m in brand placement value from Netflix's fourth series of Stranger Things so far, new data has revealed.
What is the target market for Stranger Things? ›
The series' target audience is teenagers and young adults. These people are most likely attracted to the show because of its horror, comedy, romance, and drama aspects. Stranger Things also has highly likable characters.
How does Netflix deliver value? ›
Engagement — Value Creation Proposition
The rating algorithm makes better use of movies available on the website tailored to his/her taste to watch. Netflix also creates value by having one of the widest supported devices ranges, including game consoles, smart phones, tablets, PCs, and internet TVs.
What is Netflix brand positioning strategy? ›
Positioning of Netflix
Positioning refers to the strategic endeavour that allows a company to stand distinct in the eyes of the customer. Netflix has effectively positioned itself not just as another video streaming platform, but as a premium provider of diverse and personalised content accessible anytime, anywhere.
Who pays who for product placement? ›
How do movies/ Television shows get paid? Product placement is generally done by advertising agencies. Manufacturers pay the agencies, the agencies pay the television show. Movies are funded by producers who will often get a stipend from a manufacturer for showing their product.
A Net Placement Value is a dollar (or other currency) figure that estimates, based on both the reach and the quality of a brand's exposure via product placement, how much it would cost to achieve the same level of exposure through traditional advertising.
How effective is product placement? ›
Product placement is effective because it enables the audience to develop a stronger connection with the brand in a more natural way, rather than being directly marketed to. When a brand appears in a movie, TV show, or other performance, it is most likely because an advertiser paid for that privilege.
How much do brands pay for product placement? ›
Some brand placement agents change a flat fee of $20K to $40K to find product placement opportunities for your brand. On top of that, the product placement costs associated with the brand integration can range from $20K to $200K.
What is a media placement? ›
Media placements, also called media exposure or earned media, are interviews, features, quotes by, or mentions of you or your brand in a media outlet, whether that be on television, radio, podcasts, print, or web.
Is product placement legal? ›
Since the FCC rules do not apply to movies, and the FTC does not require disclosure, product placement in movies can occur without any sort of disclosure that an advertiser paid for the product to appear.
Are the Eggos in Stranger Things product placement? ›
'Stranger Things' and Eggo Waffles: In the world of demogorgons and Eleven's telekinesis, there's one thing that's more mysterious – the inescapable craving for Eggo waffles! They didn't just 'like' Eggo, they were addicted! That's an example of product placement done so right, it's "stranger" than fiction.
What product placement is Dr Strange in? ›
“One of the main themes of the film is about time and Dr Strange has an aspirational lifestyle where he can afford the finer things in life”. Darryl goes on to say “Not only is his choice of the Jaeger Le Coultre an endorsem*nt of the brand but like the Lamborghini in that scene it helps define Dr Strange's character.”
How much did co*ke pay Stranger Things? ›
Brand placement value in Stranger Things season four in the U.S. and the UK 2022. In 2022, a study looked into the product placement value of brands included in the fourth season of Netflix's original Stranger Things. Coca-Cola was the brand that scored the highest product placement value - 1.83 million U.S. dollars.
What company filmed Stranger Things? ›
Produced by Monkey Massacre Productions and 21 Laps Entertainment, the first season was released on Netflix on July 15, 2016. The second and third seasons followed in October 2017 and July 2019 respectively, and the fourth season was released in two parts in May and July 2022.
