Writing a Thesis on Product Placement

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Placing Cars In Motion Pictures Is Big Business For Auto Agents

By Paul A. Eisenstein, Investor's Daily

August 5, 1991

DATELINE: HOLLYWOOD, Calif.

Lights! Camera! Autos!

No Hollywood adventure is complete without a car chase. But whether you're talking action, drama or comedy, automobiles almost always seem to show up in supporting roles. And when the casting call goes out, automakers are likely to stand in line in the hopes of landing a plum role.

When the sequel to the hit movie ''Batman'' makes its debut next year, the caped crusader and his Batmobile will share screen time with 30 Volkswagen Foxes. That's quite a coup for Volkswagen A.G., crows Larry Brown, who considers the exposure ''like money in the bank.'' The West Coast public relations manager for VW and Audi, Brown spends much of his time finding film roles for his ''cast'' of products. Indeed, the stars aren't the only ones who need agents to manage their careers.

Most automakers have special representatives combing the trade dailies and listening to Hollywood gossip looking for ''work'' for their fleet of cars. Yet these agents can also be surprisingly picky. Before they hand over the keys, they're likely to lay down some strict rules: For example, everyone in the car has to wear a seatbelt while on camera. And the carmakers almost always demand a peek at the script. They don't like their cars used in accident scenes, and,

''We shy away from criminals (and) drug dealers. There is no need to support illegal activities,'' added Eric Dahlquist, President of the Vista Group, which represents Mercedes-Benz A.G., and General Motors Corp.'s truck and Pontiac divisions.

In the Mel Gibson-Danny Glover movie, ''Lethal Weapon,'' the villain did get his hands on an Audi, Brown said, but only by stealing the car. And even then, the producers agreed to the demand that the car's rightful owner shout out, ''They have my Audi.''

If you wonder why the film industry is willing to put up with those demands, it's because they can save a lot of money if they don't have to spend on automobiles. Painting and preparing a couple of cars for their on-screen ''performance'' may cost a carmaker $ 50,000. And industry insiders suggest that maintaining a Hollywood film fleet can cost a million dollars or more a year.

Still, that's a lot less than the cost of a commercial, says Carla Harman, who has been managing BMW's film and TV fleet for the last 16 years. A 60-second commercial on American network television can cost up to $ 350,000; and as much as $ 1 million during the Super Bowl. Product placement is a hot business in Hollywood these days.

Companies like Coca-Cola Co. and PepsiCo Inc. may spend tens of thousands of dollars just to ensure the camera lingers for a moment on one of their pop machines. But uniformly, auto agents insist they will not lay out any cash. The loan of an expensive automobile is ''payment enough,'' according to Harman.

That doesn't mean the automakers won't occasionally cough up for a seemingly can't-miss ''promotional tie-in.'' Chevrolet invested at least $ 10 million on cars and promotions when the film ''Days of Thunder'' made its screen debut. The movie starred screen- idol Tom Cruise as a rookie race driver, and his car was a modified Chevy Lumina. Despite the film's lack of success at the box office, Lew Eads, Chevrolet's Assistant Manager of Passenger Car Advertising, insists, ''We would do it again,'' given the right script.

Do movie roles translate into increased sales? It's not always clear. The experts say a cameo role in a movie isn't quite the same as a network commercial, but it can create a strong, subliminal message when a car is cast in a good light.

In the first eight minutes of the hit movie, Pretty Woman, an $ 87,000 Lotus Esprit got as much time on screen as star Richard Gere. Company officials say that sales took a big jump in the weeks following the film's debut. Auto agents aren't just searching for good film roles, incidentally.

Porsche was only too glad to provide both a 911 and a 924 for the episode of Dallas in which J.R. Ewing was shot.

Pontiac was only too happy to provide the jet black, sporty Trans Am that quite literally co-starred in the show Knight Rider. ''You can time TV exposure and you know how many people have actually watched the show,'' noted Carol Schmiederer, the Vista Group's Mercedes-Benz liason.

Until now, TV and film producers have tended to cast Chevys, Fords and other domestic products in everyday roles, and European imports like BMW and Mercedes when the script calls for a luxury car. That could change, however.

With the U.S. new car market becoming increasingly competitive, the Japanese are seeking more attention, and have begun hiring agents of their own. So far, the Japanese are just getting their kimonos wet, and haven't won any major roles, though Robert Hadler, the agent for Toyota's Lexus luxury division, is confident.

'We will start seeing a lot more Lexus Coupes and Lexus four-doors, in addition to BMW, Mercedes and Jaguar,'' he said. If for no other reason, insiders say the Japanese are more hopeful in the wake of recent Hollywood takeovers. Now that MCA Inc. and Columbia Pictures Entertainment Inc. are owned by Japanese companies, their producers may feel themselves under pressure to cast Asian imports in starring roles.