How much do producers charge companies for featuring their products in movies? Commercial rates for television are relatively well known, for example the ubiquitous articles about how much a 30-second spot costs during the Superbowl, but I’ve never seen anything on how much it costs to have the star of a movie sipping a can of soda while holding it so the label is facing the camera. I’d assume the price is pretty variable depending on the movie, but I’d be interested in knowing the range. Also, when did they start showing commercials before the previews at films? I know it shouldn’t seem any worse than those slideshows they’ve been doing for years, but it drives me up the wall.
Product placement fees do vary widely but are generally a fraction of the cost of traditional advertising. Deals are often arranged on barter, a hotel may provide a break on accomodation as well as providing a free location. A beer company might provide signage and promotional items. Sometimes its enough that the producer gets the props for free. Done well, product placement can benefit the movie by providing a realistic look and dispensing with the need to use generic and unfamiliar products. The big money usually comes when it goes beyond promotional placement into cross promotion.