Product Placement in Video Games: The Effect of Brand Familiarity and Repetition on Consumers' Memory

Product placement in video games is gaining momentum as a means to target audiences in an indirect and engaging way. This study uses a 2 (high repetition vs low repetition) × 2 (high brand familiarity vs low brand familiarity) factorial design to test the effects of repetition and brand familiarity on consumers' memory for brands placed in video games. Results suggest that consumers recall familiar brands placed in the video game better than unfamiliar ones. Familiar brands also performed better in a brand recognition measure than unfamiliar brands. As no interaction effect of repetition was found, both familiar and unfamiliar brands will benefit equally of the effect of repetition. Managerial implications, limitations, and future research are also addressed.