The Impact of Film Sponsorship on Brand Promotion and the

Development of the Film Industry

Wenhui Wu

D’Amore-McKim School of Business, Northeastern University, Boston, U.S.A.

Keywords: Movie Sponsorship, Product Placement, Brand Promotion.

Abstract: This paper explores the influence of movie sponsorship on branding and the growth of the motion picture

industry. Movie sponsorship, by embedding brands into movie plots, enhances brand recognition, influences

consumer perceptions, and builds brand loyalty. Also brand sponsorship gives a large amount of funding

towards movie production, wider market range and increases global competitiveness. However, with too

much commercialism, the art of creativity and value gets lost. Newer technologies like Artificial Intelligence,

Virtual Reality and Augmented Reality are redefining the film sponsorship model for more intelligent and

immersive brand integration. The study provides people with a greater understanding of how movie

sponsorship can benefit both brands and filmmakers, while also acknowledging the need for finding balance

between the conflicting goals of commerce versus creativity.

1 INTRODUCTION

In the context of today's rapid digitalization, the

marketing strategies of brands are also changing with

the trend. Enterprises are pursuing more subtle and

penetrating ways to promote their brands in people's

minds. Movies are a great medium to help promote a

brand because of their audience base and the deep

emotional resonance that their content brings to the

audience, which allows more people to learn about a

brand. Through film sponsorship, brands can not only

enhance their own fame, but also subtly influence

consumers' purchasing behavior and attitudes.

Movie sponsorship first appeared in the early 20th

century in Hollywood movies, brands are mainly

through the product implantation way to the audience

to convey the brand's message. With the development

of the film and television industry, the form of

cooperation between brands and movies has gradually

expanded. From the 1970s to the 1990s, movie

sponsorship shifted from simple product placement to

more in-depth brand cooperation, such as joint

marketing, brand co-branding and direct brand

investment in movie production.

With the coming of the 21st century, advances in

digital technology have further fueled the evolution of

film sponsorship. With the support of streaming media

platforms and artificial intelligence technology,

brands are not only able to adjust the content of

advertisements in movies through digital product

placement but also use big data analysis to accurately

match the target audience. At the same time, some

brands are even directly involved in movie production

and deeply involved in content creation. These new

methods not only allow brands to publicize their

products more effectively but also allow viewers to

have a deeper understanding of the brand.

Although movie sponsorship brings a lot of

opportunities for brands and the movie industry, it also

brings some negative effects. For example, brand

involvement leads to over-commercialization of the

film, which makes the audience reject the brand

implantation. Therefore, in the process of brand

sponsorship, how to balance commercial value and

artistic value, and how to make the brand implantation

more natural and not rigid, will be an important

consideration.

This study will delve into the impact of movie

sponsorship on branding and the movie industry. First,

it will analyze the main forms of film sponsorship and

its evolution and clarify how brands can achieve their

marketing goals with the help of films. Secondly, to

explore its impact on brand exposure and brand

loyalty. Then, it examines the role of brands in driving

the film industry, including financial support, market

expansion, and creative influence, while assessing the

Wu, W.

The Impact of Film Sponsorship on Brand Promotion and the Development of the Film Industry.

DOI: 10.5220/0013989900004916

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Public Relations and Media Communication (PRMC 2025), pages 273-277

ISBN: 978-989-758-778-8

273

challenges of its commercialization. Finally, it looks

at future trends in movie sponsorship. The purpose of

this study is to provide a systematic analysis for

academia and the industry to help brands use film

more effectively for marketing, as well as to provide

theoretical support for the film industry's balance

between commercialization and artistry, and to

provide a reference for future models of cooperation

between brands and the film industry.

2 FORMS AND EVOLUTION OF

FILM SPONSORSHIP

Movie sponsorship as a brand marketing strategy has

evolved from simple product placement to complex

co-marketing and direct brand investment. This trend

reflects advances in companies' marketing approaches

and the increasing commercialization of the film

industry. Brands have discovered that movies have a

huge impact on shaping public perception and

influencing consumer decisions, so they continue to

optimize their sponsorships to increase brand impact

and market reach (Daley, 2024).

One of the most common forms of movie

sponsorship is product placement, in which brands

integrate their products into movie plots, scenes, or

character interactions to make brand exposure more

natural yet noticeable to the audience. For example,

Hershey's chocolates featured in Wings in the early

1900s, this is a prime example of early advertising

implants (Subba, 2019). As the movie industry

evolved, implanted advertisements became more

subtle, such as the Swiss candy from the Reese's

Pieces brand in 1982's E.T. the Extra-Terrestrial. After

the release of the movie, sales of the brand's candy

increased by about 65% (Havale & Chaudhari, 2020).

Today, the use of digital technology has further

boosted the growth of implantable advertising. Brands

can digitally place implantable ads in the post-

production of a movie and can even dynamically and

precisely place ad content based on the viewer's

geographic location and preferences. For example,

streaming platforms such as Netflix and Amazon

Prime use artificial intelligence (AI) technology to

optimize brand presentation in movies for different

audiences, making ads more personalized and precise

(Wu et al., 2021).

In addition to product implantation, Co-Branding

and Co-Marketing are also important strategies for

movie sponsorship. Brands launch co-branded

products or movie-themed advertisements in

cooperation with a movie to promote the movie with

the help of the movie's popularity. For example,

McDonald's has a long history of partnering with

famous movies to launch movie-themed packages and

toys, such as The Lion King (1994) and the Star Wars

series (Ricci, 2023). Fashion brands have also used the

influence of movies to boost their brand image. For

example, Gucci partnered with House of Gucci, where

the brand supplied the costumes used by the actors for

the movie, and even released special editions of

movie-themed clothing. In addition, some brands

emphasize their product features in movie

advertisements, such as Audi's frequent appearances

in Marvel's Avengers franchise, reinforcing its high-

tech and innovative brand image in the minds of

viewers (Bajwa, Farooq, & Bukhari, 2022). These

marketing strategies not only generate additional

revenue for the movie, but also dramatically increase

the brand's market exposure, resulting in a win-win

situation for both the company and the movie.

Another more direct form of film sponsorship is

Brand Investment in Film Production (BIFP), which is

when a brand provides direct financial support to a

movie in exchange for brand exposure or thematic

echoes in the movie. In recent years, many technology

companies, such as Apple and Amazon, have begun to

invest in the movie industry to produce films and TV

shows that are in line with their brand values (Daley,

2024). Moreover, Red Bull is also known to create

extreme sports documentaries via Red Bull Media

House that suits its brand image of ‘pushing up the

limits’ (Wu et al., 2021). However, while investment

by brands backs films and will provide a steady stream

of cash for the film industry, it will also impact the

creative freedom of films. For example, Chrysler's

extensive car placement in Transformers led to

complaints from some viewers that the movie was

more like a car commercial than pure entertainment

(Havale & Chaudhari, 2020). This suggests that

brands need to balance the relationship between

commercialization and artistic creation in the process

of sponsoring a movie to avoid excessive marketing

that triggers audience resentment.

3 THE IMPACT OF FILM

SPONSORSHIP ON BRAND

PROMOTION

Movie sponsorship is a very important marketing

strategy for brands, enabling companies to leverage

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the wide reach and emotional resonance of movies to

increase brand awareness, shape consumer perception

and enhance brand loyalty. In contrast to traditional

advertising, which is easily overlooked by viewers,

movie sponsorships can integrate a product into a

movie's plot, making it more natural and memorable

for viewers. The successful appearance of a brand in

a popular movie usually results in significant sales

growth and brand awareness. For example, by placing

Ray-Ban sunglasses in Strong Hearts (1986), the

brand gave viewers a stylish and high-end image

through the movie's plot, resulting in a 40% increase

in sales (Havale & Chaudhari, 2020). Similarly,

Aston Martin's long association with the James Bond

film series has made it an icon of luxury high-

performance sports cars, which is closely linked to the

fact that James Bond impresses audiences with the

elegance he displays in the films (Ricci, 2023).

In addition to brand exposure, movie sponsorships

shape consumer perceptions and influence

purchasing decisions. When brands are naturally

integrated into the plot of a movie, they can enhance

credibility and appeal to a certain extent. For

example, in Back to the Future 2 (1989), Nike's

futuristic sneaker Air Mag was naturally incorporated

in the movie, reinforcing Nike's innovative as well as

technological image. At the same time, audience

interest in the shoe was so high that decades later,

with the release of the limited copy of the shoe, it once

again aroused people's enthusiasm (Bajwa, et al.,

2022). Compared with traditional advertising that

relies on direct promotion, movie sponsorship

subconsciously influences consumers' perception of

the brand and stimulates purchase intention through

the penetration of characterization and storyline.

Movie sponsorships can enhance brand loyalty by

subconsciously influencing consumer attitudes and

purchase intentions (Abu Seman et al., 2019). For

example, Coca-Cola is often featured in nostalgic and

heart-warming scenes, which leads to consumers

choosing to purchase Coca-Cola during family or

friend gatherings, which further enhances its brand

image as a classic global beverage (Subba, 2019).

Another example is The Lego Movie (The Lego

Movie, 2014), in which the brand turned the movie

itself into a feature-length brand advertisement

through humor and creative narrative. The movie

succeeded in gaining positive reviews from the

audience as well as increasing the sales of Lego

products (Daley, 2024). Both examples demonstrate

that brands are able to use the emotional resonance of

movies to create a deeper connection with consumers

and create long-term loyalty and identification with

the brand.

Target market precision is another major

advantage of movie sponsorship. Brands usually

choose to cooperate with movies that match their

target audience. For example, luxury brands are more

inclined to implant espionage and action movies,

sports brands choose adventure or athletic movies,

and technology companies prefer sci-fi themes. For

example, Red Bull (Red Bull) reinforced the brand's

association with extreme challenges and high-energy

lifestyles by sponsoring extreme sports

documentaries (Chavadi, et ai., 2019).

4 THE IMPACT OF FILM

SPONSORSHIP ON THE FILM

INDUSTRY

Movie sponsorship is not only an important means of

brand promotion but has also had a profound impact

on the development of the movie industry. Due to the

increase of brand investment in movies, the movie

industry has undergone significant changes in terms

of financial support, market competitiveness,

publicity and promotion, and creative freedom. The

cooperation between brands and films has promoted

the expansion of the film market, but it has also

triggered a discussion on the balance between

commercialization and artistry.

Producing a movie usually requires a huge

investment, especially for special effects blockbusters

and massively publicized movies. Brand

sponsorships can greatly ease the financial pressure

on movie production. They provide an additional

source of income for movie production through direct

investment or implanted advertisements. For

example, BMW sponsored the Dishonored series of

movies and financed the movie while promoting its

new models through the movie (Ricci, 2023). In

addition, brand support for independent films and

documentaries provides more creative opportunities

for smaller productions. For example, Red Bull has

funded extreme sports documentaries that not only fit

with its brand image but also provide a stable source

of funding for the niche film market (Chavadi,

Menon, & Sirothiya, 2019).

The involvement of brands also increases the

marketability and global promotion of the movie.

Movies can partner with well-known brands and then

expand their reach through the marketing channels of

their brands. For example, McDonald's partnered

with Disney to offer movie-themed packages, which

greatly boosted the box office performance of movies

such as The Lion King (1994) (Daley, 2024). Brands

can also use their social media and advertising

networks to help movies attract a wider audience,

such as Nike's partnership with Space Jam, which

The Impact of Film Sponsorship on Brand Promotion and the Development of the Film Industry

275

successfully drew basketball fans and young

consumers to the movie (Havale & Chaudhari, 2020).

Movie sponsorship also influences the creative

freedom and storytelling of a movie. As brand

investment in films has increased, some films have

begun to center their narratives around the brand

rather than on the artistry, resulting in films that feel

more like an extended version of an advertisement

(Baez Calvillo, 2020). For example, the extensive

placement of General Motors models in Transformers

(2007) made some scenes in the movie feel more like

car advertisements to the audience than a necessary

part of the movie's narrative (Wu et al., 2021).

Similarly, the excessive implantation of Coca-Cola in

Superman 2 (1980) led viewers to criticize the film

for lacking a natural flow of the narrative (Hafiar et

al., 2022). While this commercial intervention brings

financial support, it also raises questions about the

imbalance between artistry and commercialization of

the film. In addition, certain brands will impose strict

requirements on the content of the movie and even

influence the direction of the movie's plot. For

example, some brands may require movies to avoid

negative topics to ensure that the brand's image is not

affected, which may limit the director's creative space

(Bajwa, et al., 2022).

5 FUTURE TRENDS IN FILM

SPONSORSHIP

Movie sponsorship trends in the future are dominated

by Artificial Intelligence (AI)-powered smart product

placement, the reinvention of sponsorship models by

streaming platforms, the deeper integration of brands

with film production, the changing audience

acceptance of branded content, and the use of Virtual

Reality (VR) and Augmented Reality (AR)

technologies. These new trends are changing how

brands are incorporating film content to make them

smarter, more personalized and immersive.

AI technology is changing the way movies are

sponsored, making brand placement more flexible

and precise. Traditional product placement is usually

determined during the filming phase of a movie and

cannot be changed later. Real-time replacement of

brands in a movie depending on the audience’s

location, language and even viewing habits. For

instance, companies like Netflix and Amazon Prime

are experimenting with artificial intelligence-enabled

product placement, which enables brands to serve ads

to distinct demographic groups (Wu et al., 2021). This

technology not only enhances the targeting of ads but

also lowers the resistance to the ads of the audience

and makes the movie sponsorships more effective and

natural.

The rise of streaming platforms is also reshaping

movie sponsorship and changing the way brands

work with movies. Whereas in the past, brand

sponsorship relied heavily on theatrical films, today

brands are increasingly investing in streaming

original content. For example, Coca-Cola has

partnered with the Netflix series Stranger Things to

launch retro packaging that appeals to the show's 80s

nostalgia theme (Daley, 2024). In addition, streaming

platforms use data to analyze viewer preferences,

allowing brands to be more precise with their product

placement. For example, Amazon Prime allows

brands to dynamically adjust advertisements based on

user viewing history, enabling brands to reach

targeted consumers with greater precision (Bajwa, et

al., 2022). This model increases the commercial value

of film sponsorship and provides brands with higher

market conversion rates.

The deep integration of brands and movie

production is becoming a new trend. Brands are no

longer limited to being investors in movies but are

directly involved in content creation. For example,

Apple TV+ has introduced several original movie and

television productions with a high level of quality in

recent years, where the natural use of Apple's devices

not only provides brand exposure, but also enhances

its brand cultural values (Ricci, 2023). This deeply

integrated strategy not only avoids rigid product

placement, but also makes the brand part of the story,

making it more persuasive.

As audience acceptance of advertisements

changes, brands need to adopt more innovative and

entertaining ways of implantation. Younger

generation consumers are more resistant to traditional

advertising, but more creative brand content will be

easier for them to accept. For example, The LEGO

Movie (2014) was essentially a brand promotional

film, but instead of being offensive to audiences, the

movie was propelled to become a global hit due to its

subtle narrative and highly entertaining nature

(Subba, 2019). Expect to see more of this strategy

used by brands shortly, as companies will receive

better promotional opportunities by generating their

own content or collaborating with filmmakers on

films that directly relate to their brand.

The rapid development of Virtual Reality (VR)

and Augmented Reality (AR) technologies also opens

new possibilities for movie sponsorship. Brands can

use VR movies to provide an interactive product

experience, allowing viewers to experience the brand

directly in a virtual environment. For instance, Nike

is experimenting with VR technology that enables

viewers to “try on” sneakers, to create a deeper level

of immersion in brand placement (Havale &

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276

Chaudhari, 2020). This trend enables the audience to

better experience the product before buying.

6 CONCLUSION

This paper discusses the influence of film sponsorship

on brand promotion and film industry development.

This paper summarizes the forms and evolution of

film sponsorship, the influence of film sponsorship on

brand promotion and film industry, further discusses

the challenges and disputes faced by film sponsorship

and expounds the future film sponsorship model.

Movie sponsorships have become an important

strategy for brand marketing, not only to increase

brand awareness, but also to influence consumer

perceptions and enhance brand loyalty. By naturally

blending the brand with a movie story, movie

sponsorships provide brands with unique

opportunities for market exposure. Successful cases

such as Aston Martin's long-term cooperation with

James Bond and Nike's implanted ads in Back to the

Future 2 have shown that this approach can be

effective in attracting more consumers to the brand.

However, judging from the overexposure of Coca-

Cola in Superman 2 and the excessive car brands in

Transformers, over-commercialization may cause

audience resentment and affect the overall movie-

going experience, so there are certain risks associated

with this marketing model at the same time.

In addition to brand promotion, movie

sponsorship has also had a profound impact on the

development of the movie industry. The injection of

brand funds not only promotes movie production but

also enhances market competitiveness and publicity

coverage of the movie. However, with the growth of

commercial power, the influence of brands on the

creation of films is gradually expanding. This leads to

over-commercialization and lack of artistry. For

example, brands may request changes to the content

of a movie to meet their own market needs, but this

may affect the integrity of the movie's narrative.

In the future, dynamic product placement driven

by artificial intelligence, brand partnerships on

streaming platforms, and the use of virtual and

augmented reality technologies will redefine the way

brands interact with movie content. As technology

evolves, brands can build stronger connections with

their audiences through personalized placements and

interactive experiences.

In conclusion, film sponsorship is still an effective

way of brand marketing. It is important to note that in

order to maximize the value of film sponsorship,

brands need to consider whether their concept

matches the content of the film and how well it is

received by audiences. While brands and the film

industry continue to explore new ways of

cooperation, how to find the best balance between

commercialization and artistic creation will be a

continuous challenge for the future development of

film sponsorship.

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