Embedded ads can push ethical line.

• Author: Boulger, Matt
• Position: Guest column

AS AMERICAN CONSUMERS, WE'VE BECOME ACCUSTOMED to advertising--nearly everywhere we look or listen. Even in unexpected locations: on restaurant menus, inside elevators, above urinals.

But there is a different strain of advertising--a more subtle method--that seeps into our everyday life, almost subliminally.

It's the kind that is seamlessly woven into a TV program, a video game, or a magazine column like this one (which naturally helps identify and promote my marketing firm).

This advertising is not inserted during the TV program-break or with an ad placed beside the column ... but it's placed in the program or column itself. In the industry, it's called "product placement."

A few examples might help: When a character in a popular television program uses a brand name-laundry detergent--in clear camera focus--as part of the storyline. Or, when a magazine columnist touts a product without disclosing the benefit he is receiving for the mention. Do you see how these brands can benefit from these seemingly innocent mentions? (There are exceptions: When a product is mentioned because it's critical to the storyline, and there's no compensation.)

The effect of this subtle method can be twofold: First, when a brand or product is woven into a script or into a news-story or column, exposure is gained and a positive association is made. For example, if a character in "Sex and the City" is seen using a particular brand of beauty product during the show, the show's female-rich viewing demographic is more inclined to use the product. Often, this resulting buying behavior comes from viewers being able to relate to the characters on screen .... Or, even more, when the audience has a vicarious connection to the character. This "relating" technique is as fundamental to advertising as the advertisement itself. However, the woven-in "in-story" element is not.

The second effect, especially in the instance of the published article, can be the insinuation of an unspoken endorsement. This case is more tricky. But if there is any kind of compensation or quid pro quo arrangement between the writer and the brand or business-owner, ethical issues arise.

All this invites the question: When and how should consumers be informed of this paid-for mention or relationship?

Yet another relevant question is: Does this method of advertising really impact the consumer's buying decisions? Do these subtle methods really work on us? Let's tackle this question first. In short, the...