Current Agency-Client Perspectives on Product Placement in Korea

Abstract

The objective of this research is to investigate the similarities and differences between agency practitioners’ and clients’ perspectives on product placement as a whole in Korea. Using a survey of 137 participants (104 advertising, public relations and placement agency practitioners and 33 client organization decision makers) in Korea, the current study examines the differences between their views on placement practices. Our results show that there is a significant disagreement with respect to primary marketing objectives of product placement. Additionally, each group maintains a different view regarding the execution‐related considerations and preferred product categories necessary to achieve these objectives. However, both groups agree that new media are more appropriate, effective channels for the practice in the Korean market than traditional media. Finally, agency practitioners and clients tend to be cautious with respect to the challenging social and regulatory conditions surrounding product placement in Korea. The respondents are by no means are representative of the entire population of decision makers in the Korean marketing communications industry. In addition, future researcher needs to include different countries and cultures. This study allows multinational corporations and international marketers to better understand business practices and decision making processes surrounding product placement that are unique to the Korean culture and marketing environment. This study contributes to the knowledge accumulation established by previous placement research and the decision making processes of international marketers wishing to place their brands in the Korean marketing contexts.