The collapse of General Motors (GM) has led the company to cut back production goals and revenue forecasts, and that’s just the beginning. The auto manufacturer has also reduced branded entertainment contributions to the upcoming film “Transformers 2: Revenge of the Fallen.”
GM will feature several car models in the film, including the “Bumblebee Camaro.” However, the company has pulled back contributions to the film’s marketing campaign.
The reduced sponsorships come at a crucial time, because the 2009 summer is shaping up to be one of the most competitive summers in Hollywood. With the upcoming releases of Star Trek, Harry Potter, and X-Men, Paramount Pictures’ Transformers 2 needs all the support it can get.
“There’s so much competition out there for the entertainment dollar that studios and filmmakers really can’t open big, $100-million movies without the assistance of partner alliances that can help generate awareness and sell movie tickets,” claimed Norm Marshall, chief executive at NMA—a branded entertainment company.
With the recession at hand, production companies are looking to alternative means of financing. And hooking up with consumer giants in exchange for product placements are a primary option.
“It can be extremely valuable,” said Adam Fogelson, president of marketing and distribution at Universal Pictures. The production studio has an upcoming movie titled “Land of the Lost” which hooked up with Subway for media and in-store promotions.
“Major media promotions can exceed $10 million,” Fogelson attested. “All of our media budgets are under pressure, and having substantial media money coming from a promotional partner can reduce the sheer amount of dollars you spend.”
For GM, officials have decided to cut back on funding due to the financial crisis.
“We’ve pulled back on all of our marketing and advertising for obvious reasons, and spending is down dramatically,” explained Terry Rhadigan, the communications director for Chevrolet, GM’s largest division. “It stands to reason that ‘Transformers’ would fall under that umbrella.”
Source: Product Placement
