Recommended for You (to Buy): Predictions of How Streaming Services Will Soon
Allow for Personalized Product Placements
A combination of two existing marketing practices—product placements and
personalization—suggests a new leading edge for advertising. Specifically, streaming services
such as Netflix and Hulu are gearing up to help advertisers personalize their communications
not just during breaks between shows but even during the show itself.
The personalization would reflect various consumer data. If one viewer is watching a streaming
show in the morning, the lead character might be depicted eating cereal. If another is watching
late in the evening, that very same character, in the same scene, might appear to be chowing
down on ice cream instead. In addition to timing, the placements could vary with consumer
preferences, such as whether the viewer is more likely to respond to a chase scene populated
by sports cars or SUVs.
These insights are uniquely available to streaming services, which constantly collect data from
viewers as they interact with the service. The streaming services already use them to design the
advertising that appears when a user pauses a show or in between episodes. For example, if a
consumer watches more than three episodes of a show during one sitting, Hulu will queue up
advertisements for Kellogg’s, with the anticipation that this binger might be ready for a little
snack.
Other experiments are even more interactive. On Netflix, viewers of Bandersnatch had an
opportunity to click to decide which of two cereals would appear in the background of a scene
taking place in a kitchen. The preferred choice then appeared as part of the scene, later in the
program. Such insights are deeply valuable for advertisers, but they also promise to engage
users more with the program. Instead of just watching passively, they can signal their
preference, in a game-like setting, then have the fun of seeing their choice pop up just a little
later.
Alternatively, on Vudu, which is owned by Walmart, the interaction can be even more direct.
The service features “shoppable ads,” so that smart television users can click a purchase button