Across the Canadian border it is 85 cents. Thus, a dime of incremental gross profit is better than nothing. US Pharmaceutical companies are being accused of charging US companies to cover the high fixed costs, essentially subsidizing drug research for the rest of the world's consumers. Prices for 30 second spots on TV are climbing, more commercials are cluttering the airwaves and audiences are fragmenting. So advertisers are looking for more inventive ways to promote their products.
Networks are eager to oblige, and thus the walls between programming and advertising are crumbling.
Product placement is becoming more common than ever. Princeton Video Image has perfected the technology to digitally insert products even after shows are made. That avoids outdated placements and conflicts with paying sponsors. Be sure to consider the product, the target market, the media, the stage of the product life cycle. Margins are disappearing as every single sale is in real time against dozens of hungry competitors.