Enhancing digital entertainment through personalization: The evolving role of product placements

Abstract

This research tests a model of the effects of personalized product placements on consumer preference, both for the embedded brand and the digital entertainment product in which that brand is embedded. The latter has yet to be examined in the traditional product placements literature. The results of two studies conducted in the domain of eBooks are presented. Evidence suggests that when pre-existing rankings of brands were systematically collected and used to design personalized product embeds, participants were willing to pay more for the eBook when it contained a favourably (vs. unfavourably) ranked brand, but only when the brand embed was subtle (as opposed to obvious). Study 2 also finds that personalized product placements enhanced consumers’ recall of, and probability of choosing the embedded brand. Results suggest that both the digital entertainment product and the embedded brand can benefit from the strategic use of personalized product placements.