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Beyond Advertising and Publicity: Hybrid Messages

and Public Policy Issues
Siva K. Balasubramanian
Published online: 03 Jun 2013.

To cite this article: Siva K. Balasubramanian (1994) Beyond Advertising and Publicity: Hybrid Messages and Public
Policy Issues, Journal of Advertising, 23:4, 29-46, DOI: 10.1080/00913367.1943.10673457

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 Beyond Advertising and Publicity: Hybrid Messages
and Public Policy Issues
Siva K. Balasubramanian

This research explores a growing genre of marketing communication, labeled hybrid messages, which cre-
atively combine key advantages (and avoid key disadvantages) inherent in advertising and publicity mes-
sages. Several types of hybrid messages are discussed, including those with long established histories (prod-
uct placements, program-length commercials, program tie-ins), and those with a relatively recent origin
(masked-art, masked-news, and masked-spokesperson messages). To obtain integrative insights on hybrid
messages, this study: (a) reviews their historical/current regulatory status, (b) discusses their pros and cons,
theoretical rationales and practical implications, and (c) delineates an extensive agenda for future research.
Several important public policy questions raised by hybrid messages are addressed.
Downloaded by [University of Sussex Library] at 11:50 27 August 2015

Siva K. Balasubramariian is
Associate Professor of Marketing,
Introduction
College of Business and Administra-
tion, Southern Illinois University at In order to expose media audiences to product-related information, orga-
Carbondale. He received his Ph.D. in nizations often rely on two non-personal communication devices: advertis-
Marketing from SUNY at Buffalo. ing and publicity. One of the important distinctions between these devices
This research was supported by an lies in their definitions. That is, advertising refers to communications that
Old Gold Fellowship at the Univer-
sity of Iowa. For providing copies of are paid for, and which clearly identify the message sponsor, while publicity
media reports or other information, represents messages that are not paid for, and which do not identify the
thanks are expressed to Carol Cain sponsor (Cohen 1988). A common example of the latter is a media story on a
(The Detroit News), Peggy Charren
(Action for Children's Television), branded product.
Lesley Fair (Federal Trade Commis- These definitions yield an asymmetric structure of pros and cons when
sion), Kenneth Feather (Food & two basic elements of a marketing communication are considered, i.e., the
Drugs Administration), Stan
Friedman (Friedman-O'Sulliuan message, and, its perceived source. Consider the top half of Figure 1. With
Communications), Charles Mitchell, respect to the message element, the sponsor has control over its content;
Bruce Silverglade (Center for Science
in the Public Interest), and Edythe format in advertising (a key advantage), but not in the case of publicity (a
Wise (Federal Communications key disadvantage), where such control is the media's prerogative (Cohen
Commission). The author received 1988). The perceived source element is important because it directly influ-
useful comments on this study
following research presentations at ences message credibility. Because publicity messages do not identify the
the University of Southern California sponsor (i.e., the actual message source), audiences tend to perceive the
and Southern Illinois University. media as the legitimate source of any featured brand-related story. More
Several improvements suggested by
the Editor and JA reviewers. and the importantly, media institutions epitomize editorial independence in free
encouragement provided by the societies. As a result, publicity messages appear credible and objective (a
Marketing Science Institute, are key advantage). In contrast, these desirable message qualities are less often
gratefully acknowledged. A longer
version of this paper ("Beyond associated with advertising (a key disadvantage), given its obvious and
Advertising and Publicity: The usual purpose: financial gain to the sponsor (Schudson 1984). Typically,
Domain of Hybrid Messages") is
available as Marketing Science
advertising messages tend to evoke widespread skepticism (Calfee and
Institute Working Paper # 91-131. Ringold 1988).
Viewed from the sponsor perspective, both advertising and publicity have
shortcomings. That is, neither advertising nor publicity provides the desir-
able "benefit-mix" whereby the sponsor retains control over the message
while the audience perceives the message as credible. This could explain the
Journal of Advertising,
growing popularity of another distinct genre of marketing communication
Volume XXIII, Number 4 which promises this benefit mix. Communications in this genre can be
December 1994 characterized as hybrid messages because they creatively combine key ele-
 30 Journal of Advertising

Figure 1
Hybrid Messages Creatively Combine Advertising and PUblicity Concepts

ADVERTISING PUBLICITY

Not Paid for Disadvantage: Message

content and format not
controlled by sponsor.
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Sponsor Disadvantage: Perceived Sponsor Advantage: Perceived

identified source (i.e., sponsor) not identified ~ source (i.e., media)
viewed with skepticism. a ears credible.

HYBRID MESSAGES
provide a unique benefit mix for the sponsor

Paid for ~ Advantage: Sponsor retains control

over message.

Advantage: Sponsor's message appears

credible.

ments from the definitions of advertising and public- Hybrid messages include all paid attempts to influ-
ity (i.e., they are paid for and do not identify the ence audiences for commercial benefit using commu-
sponsor) such that their respective advantages are nications that project a non-commercial character;
consolidated, and their shortcomings are avoided (see under these circumstances, audiences are likely to be
Figure 1). Because they are paid for, hybrid messages unaware of the commercial influence attempt and/or
provide a basis for the sponsor to control key message to process the content of such communications differ-
aspects such as its content and format; because they ently than they process commercial messages. Given
covertly or overtly disguise their commercial origins, this, several factors motivate research focusing on
hybrid messages may appear believable. hybrid messages. First, hybrids raise important ethi-
 December 1994 31

cal/legal/public policy questions concerning consumer viewed to locate desirable story contexts for placing a
welfare and consumer education. For instance, they specific product (Salmans 1981); when these contexts
stimulate a debate on how to balance the protection (and the consideration terms accompanying them)
oflegitimate interests ofthe individual (e.g., a person's are acceptable to both the moviemaker and the prod-
desire to know - if, when, and by whom - he/she is uct sponsor, a product placement results (Newsweek
being influenced with regard to a product) with the 1989). For example, Alaska Airlines, Apple comput-
accommodation of First Amendment rights of com- ers, Bounty paper towels, and Ore-Ida Frozen french
mercial sponsors. Second, the proliferation of hybrids fries were an integral part of the movie Short Circuit
in the 1980s was phenomenal (as discussed later). In (Reed 1989). Similarly, Gerber products (e.g.,
general, the factors underlying this growth deserve babyfood, strollers, and high chairs) were success-
scrutiny; in particular, there is a need to understand fully placed in several television series, including
the qualitative differences between such messages thirtysomething and Our House (Cain 1988).
and other traditional forms of marketing communica- Program Tie-In is a paid product message because
tions. Finally, the concept of hybrid messages has not of a quid-pro-quo arrangement between a program
received attention in the literature. Therefore, this source (e.g., a television network) and a product spon-
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study makes a new contribution. sor. Typically, this arrangement requires the latter
More specifically, the next sections (a) illustrate to buy advertising spots broadcast with the program
several types of hybrid messages, (b) describe their in exchange for product exposure within the program.
historical evolution and current regulatory status, (c) One example of program tie-in involves the decision
discuss conceptual and research aspects of the mar- of the CBS television network to allow the display of
keting impact of hybrids, and (d) suggest an exten- a Coke vending machine within its program titled TV
sive agenda for future research in this new area. 101, in return for a promise from Coca-Cola Corpora-
Because hybrid messages are generally "hidden but tion to advertise heavily on this program (Lipman
paid for," special attention is placed on public policy 1988). Similarly, the NBC network solicited advertis-
implications. ers with an offer to feature them in Jock Spots (a
program about sports stars and ads), if they agreed to
Types of Hybrid Messages advertise during the commercial breaks of this pro-
gram (Lipman 1991).
For expositional ease, a distinction is made between Program-Length Commercial (PLC) is a paid prod-
"established" and "emergent" hybrid messages. The uct message broadcast to television audiences using a
former group has more notoriety, because it includes format that resembles a legitimate program in both
hybrid types that (a) have a long history, and (b) content and length. In order to communicate with
attracted some regulatory attention in the past. The audiences via a PLC (also called "infomercial"), the
latter category subsumes hybrid types with a more sponsor purchases suitably long time-blocks in televi-
recent origin and, therefore, has not been subject to sion broadcast/cable network schedules. The follow-
much regulatory attention. ing example extracted from Chester and Montgomery
(1988) describes a PLC that purports to be a program
Established Hybrid Types on legal rights:
Legal Action Hotline looks like a typical public
Product Placement is a paid product message aimed affairs program during which guests discuss is-
at influencing movie (or television) audiences via the sues of public importance. Three attorneys are
planned and unobtrusive entry of a branded product seated around a host, talking about how people
into a movie (or television program). The typical prod- can exercise their legal rights. Much of the discus-
uct placement stems from a symbiotic relationship sion focuses on what to do if you're injured in an
auto accident. For legal advice, viewers are urged
between a moviemaker (who controls opportunities
to call a toll-free Legal Action Hotline number.
for product appearances in a movie) and a product What they don't know is that the only names the
sponsor (who seeks such opportunities in exchange (telephone) operators will supply are those of the
for valuable consideration). To efficiently locate prod- attorneys who have paid to be listed. All of the
uct placement opportunities, the product sponsor usu- Legal Action Hotline TV guests are also paying
ally hires a specialist firm to act as a liaison with members of the referral service. Legal Action
movie studios and secure story scripts far in advance Hotline has been airing on TV stations in San
of movie production. These scripts are carefully re- Francisco, Los Angeles, and San Diego (p. 39).
 Journal of Advertising

The "message-as-program" presentation could en- following message sponsored by a pharmaceutical com-
hance message credibility and is usually executed in pany, which involved inserts
one of several "program" formats. For example, PLes ...that were distributed inside free USA Today
have been program-packaged as a consumer news newspapers to doctors attending the American
show (The Wall Street Journal 1990), an investiga- Gastroenterological Association meeting in 1988.
tive report (Chester and Montgomery 1988), a situa- The insert was in the same format as USA Today;
tion comedy (Bird 1992a), a talk-show with a celeb- and in addition to articles on New Orleans, there
rity host (Selz 1990), or as a series of endorsements were many articles about the company's product
- including some claiming indications for its use
from satisfied consumers (ABC News 1990). To the
that were not FDA-approved and for which there
extent that PLes do not constitute formal program- were no studies proving safety or efficacy (Green
ming but only resemble them, the various "program" 1989, p. 61).
formats may mislead viewers. Occasionally, some for-
mats seem deceptive. In one instance, a PLe ostensi- This company later agreed to send a letter to every
bly depicted enthusiastic members of a studio audi- doctor who attended the meeting correcting its ear-
ence as consumers of the product pitched; yet, ABC lier message about the unapproved indications. In a
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News (1990) found that they were only paid actors similar spirit, Bristol-Myers agreed in 1991 to notify
from local talent agencies. Moreover, PLCs may rely thousands of doctors that it had disguised one of its
on other means to sustain and bolster the credibility promotional publications as a medical journal
advantage gained from the "message-as-program" (Ingersoll 1991).
mode. A Federal Trade Commission report (FTC 1990) Masked spokesperson messages fall under two cat-
notes that the PLe presentation sequence can be egories: masked-expert, and masked-celebrity. In
elaborately planned so that: masked-expert messages, the communication is deliv-
ered by a person who legitimately plays an expert
At regular intervals, the "program" may break into
a "commercial" for the product promoted on the
role that accentuates credibility and who deliberately
show, with ordering instructions. These "commer- suppresses other roles that may damage credibility.
cial breaks" often lend an additional air of realism A "Frequent Prescriber" marketing plan developed
to the "program" portions of the ad. Depending on by Wyeth-Ayerst Laboratories illustrates the masked-
the circumstances, this type of format may also expert concept: this plan "gives doctors 1000 points
mislead consumers about the nature of the on American Airlines' frequent-flyer program for each
infomercial (p. 13). patient they put on the hypertension drug Inderal
LA" (Purvis 1991, p. 70). Purvis also notes that, as
Emergent Hybrid Types part of a "study," another firm (Roche) pays doctors
$1,200 if they prescribe a new antibiotic for 20 hospi-
A masked-art hybrid message is any work of art tal patients. The entities in the preceding examples
(painting, sculpture, song, or literary work) that fea- acquire conceptual relevance because the sponsor (the
tures branded products with deliberate (but usually drug firm) and the medium (the doctor) collaborate
not obvious) commercial intent. In the context of lit- for mutual gain to influence the recipient (the pa-
erary works (e.g., fiction), this definition reduces to tient) with a hybrid message (doctor's prescription for
what Friedman (1985) characterizes as "sponsored the sponsor's drug-brand). Because the doctor delib-
word-of-author" communication. An illustration of this erately masks hia/her role as a beneficiary of the
genre involves the Clairol division of Bristol-Myers marketing plan, and only projects the role of a medi-
Company: Aslop (1988) notes that a series of Bantam cal expert, key circumstantial details (i.e., informa-
romance novels included a description ofthe heroine's tion concerning the existence, nature, and beneficia-
hair color that matched the shades in a new line of ries ofthe plan) remain unknown to the patient. There-
Clairol's hair-dye brands. Additionally, the novels in- fore, the patient may view the doctor's drug recom-
cluded 50-cent coupons for these brands. mendation in a more objective light than it should be.
Hybrid messages of the masked-news variety are The use of masked experts in the pharmaceutical
embedded in news sources. To illustrate such mes- industry extends beyond doctors; sometimes, phar-
sages, we draw on potential violations of The Food, macists and medical researchers are pressed into ser-
Drug and Cosmetic Act, which prohibits the promo- vice in this role. Tanouye (1994) reports that Miles,
tion of prescription drugs for uses unapproved by the Inc. (a pharmaceutical firm) paid pharmacists $35 for
Food and Drug Administration (FDA). Consider the each patient they "counselled" to switch to its low-
 December 1994 33

cost drug Adalat CC. Tanouye also notes that such cations. Our discussion identifies regulatory similari-
payments were not disclosed to patients. Although ties across hybrid messages embedded in broadcast/
Miles, Inc. claimed that its counselling program was cablecast media, and highlights the lack of regulation
lawful and constructive, it reached an agreement with of hybrids featured in all other media.
11 state attorneys general to end this practice. In a
similar vein, masked-expert behavior is evident in Product Placement
Banks' (1990) report on medical researchers receiv-
ing substantial monies from a pharmaceutical firm The notion of product placement evolved from suc-
as: cessful publicity efforts directed at the film medium
...research grants, consultant fees, or honoraria, several decades ago. Schudson (1984) describes the
and then embarking upon a seminar and/or media receptivity of Hollywood to influence attempts by ciga-
tour sponsored by that firm. Over the course of rette firms in the 1920s (result: actors and actresses
that tour, they repeatedly discuss that firm's lat- smoked cigarettes in movies). However, product place-
est product in glowing terms without mentioning ment was neither a well-organized nor a high-profile
their financial relationship with that firm. When growth area until the late 1970s (The Hollywood Re-
questioned about this apparent conflict of interest
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and their obligation to divulge this financial rela- porter 1986) because it merely remained a by-product
tionship, the investigators invariably characterize of publicity/public relations initiatives whereby the
themselves as inherently and unquestionably ob- product sponsor did not pay the moviemaker, but
jective and unbiased, regardless of their financial only loaned the product for use in movie production
relationship with the sponsoring firm. They, there- (Marketing Communications 1981). In marked con-
fore, view such disclosure as unnecessary (p. 7). trast, product placement acquired a distinctive hy-
As the name implies, masked-celebrity messages brid orientation in the 1980s. As a result, firms now
involve celebrities who mask their role as paid spokes- routinely pay moviemakers substantial amounts for
persons while promoting products in public appear- product placements perceived as advantageous
ances. This portrays them as objective (unpaid) en- (Fleming 1990; Krasnoff 1986). Stated differently, the
dorsers when in fact they have been hired to do such sponsors have gained progressively more control over
endorsing. For instance, baseball celebrity Mickey product placement messages in exchange for valu-
Mantle touted Voltaren (a Ciba-Geigy arthritis drug) able consideration (Miller 1990). For instance, the
as a miracle product during an appearance on NBC script for Rocky III was amended to include a scene in
network's Today show in 1988. This prompted NBC's which actor Sylvester Stallone endorses Wheaties ce-
science reporter to respond later that Mantle's "en- real as the "breakfast of champions" (Maslin 1982).
thusiasm for Voltaren is understandable, especially Similarly, a scene in Cocoon: The Return "was re-shot
since he is a paid spokesperson for the company that so that Quaker Instant Oatmeal could be displayed
makes the drug" (Lipman 1990a, p. B6). Ciba-Geigy more prominently" (Reed 1989, p. 103).
also used baseball player Whitey Ford as a Voltaren Several observers acknowledge this field as big busi-
endorser on a Miami radio talk-show and arranged ness (e.g., Fleming 1990). A product placement pack-
appearances of actress Shirley Jones (to recommend age could cost up to one-half million dollars (Lang
its estrogen-replacement drug Estraderm) before 1990), and Hollywood produces several hundred mov-
women's seminars on menopause. Faced with a crimi- ies each year, most of which place products. Elliott
nal investigation for such practices, Ciba-Geigy later (1992) estimated that marketers spend $50 million
agreed to revamp its marketing strategies to prevent annually on placements; because consideration-ori-
prescription drug promotional abuses (Ingersoll 1991). ented placements only originated in the 1980s, it is
safe to conclude that this industry has grown at a
History and Current Status good pace.
Historical evidence supports two conditions neces-
This section offers a historical analysis of the estab- sary for product placements: (1) the sponsors should
lished hybrid types in the U.S (i.e., product place- perceive that they offer value, and (2) the media should
ment, program tie-in, and program-length commer- be motivated by the economic incentives they pro-
cial). In particular, we describe the unique circum- vide. The former premise is buttressed by numerous
stances that were instrumental to the evolution of reports concerning sponsors who invest in placements
each of these hybrid types. We then review the cur- (e.g., Lang 1990; Miller 1990). One facet of this spon-
rent regulatory status of all types of hybrid communi- sor-perceived value could be the capacity of place-
 34 Journal of Advertising

ments to extend both message reach and message life 1960s (see 25 Fed. Reg. at 2408 [1960]). At that time,
because Hollywood movies have a worldwide audi- the Federal Communication Commission (FCC) dis-
ence, and because they outlast the initial phase of couraged program tie-ins because they were often
theater exhibition through videocassette sales and negotiated and implemented by networks without the
television broadcast/cablecast opportunities (Fleming knowledge of television stations (i.e., broadcast lic-
1990). Evidently, the perceived value of a product ensees) that aired network programs. This practice
placement is further enhanced under special circum- was anomalous because it prevented licensees from
stances (e.g., when an attractive placement opportu- complying with the Commission's sponsorship identi-
nity is sought by rival firms). Consider a placement fication rules, which require that audiences be clearly
in the movie Wall Street where actor Charlie Sheen informed whenever paid or sponsored material is
referred to Fortune magazine as "the bible" of Wall broadcast (see 47 C.F.R. Section 73.1212; Section 317
Street. There was a bidding contest between Fortune of Communications Act). A succinct rationale for the
and Forbes magazines for the privilege of being fea- sponsorship identification rules is provided in the
tured in this placement (The Wall Street Journal following quotation from a 1963 document (40 F.C.C):
1988). With the development of broadcast service along
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With regard to the second condition, industry ob- private commercial lines, meaningful government
servers (e.g., Lang 1990) acknowledge the economic regulation of the various broadcast media has from
attraction of product placements for moviemakers. an early date embraced the principle that listeners
That is, placements help subsidize the huge costs are entitled to know by whom they are being per-
associated with movie production. Some aggressive suaded. Thus, as far back as the Radio Act of 1927
and continuing with Section 317 of the Communi-
movie studios have even solicited potential sponsors
cations Act of 1934 there has been an unvarying
with a menu of product placement options. For ex- requirement that all matter broadcast by any sta-
ample, Walt Disney Company outlined the following tion for a valuable consideration is to be announced
cost schedule for its movie Mr. Destiny, in letters as paid for or furnished, and by whom (p. 141).
addressed to marketers: $20,000 for a visual product
In part, the FCC signal discouraging program tie-
display, $40,000 for a brand-name mention and vi-
ins and a 1960 amendment to the Communications
sual, and $60,000 for an actor to use the product
Act (to correct the anomaly discussed - see 47 U.S.C.
(Magiera 1990). Moreover, it is popular for movie
Section 508) caused networks to voluntarily adopt
product placements to be dovetailed with cross-pro-
standards that precluded brand name products in
motions, whereby the sponsor of the placed product
television programs. However, new developments in
also commits resources to combined promotion of the
the late 1980s suggest a trend toward relaxation of
product and the movie. One illustration (from Promo
these self-imposed standards. For instance, the CBSj
1988) involves Adolf Coors Company, which launched
NBC networks departed from such standards in the
a massive promotional campaign linking Coors Light
program tie-in examples cited earlier, and Pereira
beer and Twins, a Universal Pictures movie where
(1990, p. B1) notes that the MTV network may also
this beer was prominently featured. Another movie
relax its "standard practice of excising product pro-
producer even accommodated different placements in
motions" in its programs.
different versions of the same movie. A placement for
The willingness to bypass self-imposed network
Taco Bell in the U.S. release version of Warner Broth-
standards has catalyzed the evolution of the full-
ers' Demolition Man was replaced with another pitch
fledged program tie-in concept. Indeed, this concept
for Pizza Hut in the international release, to take
can be viewed as a creative network substitute for
advantage of the latter sponsor's willingness to pro-
television product placement because the latter has a
mote the film around the globe (King 1993). Such
potentially serious drawback. That is, it could trigger
cross-promotions help moviemakers save on movie
an opportunity loss of advertising revenues from com-
marketing costs (Fleming 1990), which are sometimes
petitors of the placed product (Krasnoff 1987). This is
as substantial as the costs of movie production
an important consideration, because the sale of com-
(Krasnoff 1986).
mercial time is a chief revenue source for broadcast/
cable networks. Unlike a television product place-
Program Tie-in ment, however, a program tie-in compensates for op-
portunity losses in advertising revenue by extracting
Historical records indicate that the program tie-in a sponsor's commitment to advertise heavily in the
concept existed, in a rudimentary form, prior to the program. Another reason why program tie-ins appeal
 December 1994 85

to networks is that they make it easier to sell ads in casting 1990). In addition, a new television network
less successful programs (Lipman 1988). devoted exclusively to infomercials was launched in
1991 (Marketing News 1991), and the ABC network
Program-Length Commercial later experimented with the infomercial format
(Mandese 1992). Finally, published estimates of both
PLes originated in the 1950s (Wojtas 1990), but the size and growth of the infomercial industry are
acquired initial prominence in the late 1960s as a impressive: this business was estimated to reach $ 1
television-based tool to promote products for children billion in 1992, which is approximately twice the fig-
(see Topper Corporation, 21 F.C.C. 2d 148 [1969]; ure for 1991 (Schlossberg 1992b).
American Broadcasting Companies, 23 F.C.C. 2d 132 In summary, the preceding historical review re-
[1970]). In the early 1970s, the FCC expressed seri- veals a common evolutionary pattern for established
ous concern over broadcast of PLCs (see 39 F.C.C. 2d hybrid messages: they existed in some rudimentary
1062 [1973]), and clarified its policies with regard to form prior to the 1970s, experienced a hiatus or low
PLes for the first time (see Applicability of Commis- growth in the 1970s, and re-emerged or grew sub-
sion Policies on Program Length Commercials, 44 stantially in the 1980s and beyond. Note that emer-
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F.C.C. 2d [1974]). Following widespread concern dur- gent hybrid messages preclude detailed historical
ing this period over broadcast materials directed to- analysis given their relatively recent origin. How-
ward children, the Commission also proposed quanti- ever, the various examples reviewed earlier suggest
tative limits on television advertising (see Children's at least one aspect common to all hybrid communica-
Television Report and Policy Statement, 50 F.C.C. 2d tions: the 1980s offered an environment conducive to
1 [1974]). creativity and boldness in exploring the limits of the
These limits served to outlaw PLCs until the FCC hybrid message concept.
unilaterally eliminated them in 1984 on the grounds
that marketplace forces were adequate to regulate Current Regulatory Status
the level of advertising. The Commission's rationale
was that if television stations "exceed the tolerance In marked contrast, the current regulatory frame-
level of viewers by adding 'too many' commercials the work for hybrid messages fails to yield any pattern
market will regulate itself, i.e., the viewers will not that is common to all hybrid communications. Never-
watch and the advertisers will not buy time" (98 F.C.C. theless, it is useful to organize discussion of this frame-
2d. at 1105 [1984]). As part of this broadcast deregu- work around the following dichotomy: broadcast/
lation effort, the Commission rescinded its earlier cablecast media versus "all other" media. Hybrid mes-
"policy banning program length commercials" (98 sages that emanate from the broadcast/cablecast me-
F.C.C. 2d. at 1102 [1984]). By underscoring the ac- dia (such as program tie-ins, Pl.Cs, masked-spokes-
ceptability of PLCs, these latter developments also person messages, and product placements in syndi-
enhanced their popularity. Therefore, the scope of cated films produced expressly for television broad-
PLC messages in the late 1980s and early 1990s ex- cast) are generally required to comply with the FCC
panded considerably beyond children's products to rules on sponsorship identification. On the other hand,
include financial services, real-estate investment plan- hybrids embedded within "all other" media (such as
ning, mass-influence attempts by political candidates, masked-art messages in novels, masked-news mes-
and products promising benefits such as weight-loss sages in newspapers, and product placements in fea-
and baldness-cure (Chester and Montgomery 1988; ture films produced for theatrical exhibition) are not
Jefferson and King 1992; Selz 1990; Zoglin 1991). subject to the sponsorship identification rules. Fur-
The PLC (infomercial) industry has grown in other ther elaboration on this dichotomy is presented next.
important respects. The number of PLC telecasts in
the U.S. went up from 2,500 a month in 1985 to more Hybrid Messages in Broadcast/
than 21,000 in 1991 (Zoglin 1991). This dramatic in- Cablecast Media
crease was facilitated by rapid expansion in PLC out-
let options. That is, although PLCs were initially lim- Conceptually speaking, such messages appear im-
ited to late-night time-slots in independent television plausible. That is, if paid sponsors are supposed to be
stations or cable networks, their coverage later ex- identified in broadcast/cablecast media, hybrid mes-
panded to "almost any time-slot" (Hayes and Rotfeld sages (by definition) could not exist in such media. In
1989, p. 20) and to broadcast network affiliates (Broad- practice, however, the policy waivers and specific pro-
 36 Journal of Advertising

visos discussed below help accommodate hybrid mes- 1983). A plausible reason for this imbalance emerges
sages within broadcast/cablecast media. In addition, from two characteristics (highly restricted access and
some (recently acquired) technologies and audience substantial mass-influence power) of the latter cat-
habits allow a message to virtually retain a hybrid egory. That is, given the complex nature of telecast-
character despite complying with the sponsorship ing and the finite range of wireless frequencies/cable
identification requirement. channels available, access is naturally restricted to a
Policy Waivers. In 1963, the FCC waived the spon- limited number of licensees; because telecasting is an
sorship identification requirement for feature films effective means of one-way communication with mass
when they are subsequently broadcast on television audiences, it offers the licensee enormous power to
[see Report and Order, 34 F.C.C. at 834,835 (1963)] influence them. Under the circumstances, unbridled
Therefore, it is legal to broadcast a feature film First Amendment protection appears relatively less
which contains product placements, without ex-
appropriate for broadcast/cablecast media when com-
plicitly identifying the sponsors involved. Further-
more, the Commission clarified its policy using pared to "all other" media. This difference may ex-
thirty-six detailed examples to highlight circum- plain why hybrids embedded in any media belonging
stances under which sponsorship identification is, to the "all other" category are insulated from restric-
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and is not, required [see In re Applicability ofSpon- tions like the sponsorship identification rules. Fea-
sorship Identification Rules, 40 F.C.C. 149-151 ture films illustrate this point nicely. In an extensive
(1963)]. review of movie regulations, Pember (1984) notes a
Specific Provisos. According to Section 317(a) (1) of court ruling which affirms First Amendment protec-
the Communications Act, no sponsorship identifi- tion for films and prohibits their censorship by the
cation is required even in instances where the prod- state, except in cases of obscenity (see Burstyn v.
uct sponsor furnishes economic consideration (e.g., Wilson, 343 U.S. 495 [1952]). Imposing the FCC spon-
a service or property for use in the program), pro- sorship identification rules on films may threaten
vided that the exposure of the sponsor's product in artistic freedom of expression (and also undermine
the program is not "beyond an identification rea- First Amendment protection for films); therefore, these
sonably related to the use of such service or prop- rules appear inappropriate for movie product place-
ertyin the broadcast" [47U.S.C. at 235, 236].When- ments.
ever such reasonable relationship can be estab-
lished, product placements are acceptable even in The preceding discussion affirms that hybrids in
television programs and in syndicated films. the "all other" media category are not subject to FCC
regulations but does not imply immunity from other
Impact of New Technology and New Habits. FCC applicable guidelines/regulations. Two examples fol-
rules require that sponsorship identification an- low. First, the FDA has proposed guidelines to dis-
nouncements (where necessary) should appear at courage inappropriate promotional practices for drugs
the beginning and end of a program that lasts over
five minutes [see 47 C.F.R. Section 73.1212 (d)]. "under the guise of continuing medical education for
However, the impact of these FCC rules is dimin- health-care professionals" (Gutfeld 1992, p. B7).
ished by the widespread availability of two tech- Masked-news drug promotions will be subject to these
nologies (cable television and remote-control chan- guidelines when they are formally enforced. Second,
nel selectors) that encourage channel switching or when Philip Morris paid $ 350,000 for favorable expo-
"zapping" behavior. Moreover, Kaplan (1985) has sure of Lark cigarettes in the movie License to Kill
concluded that the unique combination of commer- (Lipman 1989), this placement raised two questions:
cial breaks, closing credits, station break, and open- whether it violated the Federal Cigarette Labeling
ing credits in the beginning and end of television and Advertising Act which requires all cigarette ads
programs generally triggers zapping behavior.
Therefore, the current sponsorship identification to be accompanied by a health warning; and whether,
rules are less likely to divest messages (e.g., PLCs) given the possibility of eventual television broadcast
of their hybrid character. of this feature film, this placement was designed to
circumvent prohibitions against cigarette advertis-
Hybrid Messages in "All Other" Media ing on television. These criticisms motivated a volun-
tary move by the tobacco industry to curtail paid
From a regulatory standpoint, the "all other" media movie placements (Colford 199Gb). This and other
category has traditionally enjoyed a much higher level efforts to institutionalize self-regulation, such as the
of First Amendment protection, when compared to establishment of a trade council by the product place-
the broadcast/cablecast media category (Vradenburg ment industry (Citron 1987) and the launch of a na-
 December 1994 87

tional association by the infomercial industry factor (Goodman-Malamuth 1985) that accompanies
(Schlossberg 1992a), aim to pre-empt future regula- product placements. Consider for example, the place-
tion of hybrids. ment of a candy product in The Formula, a movie
wherein Marlon Brando casually says to fellow actor
Pros and Cons, Rationales and George C. Scott: "Have some Milk Duds, they're good
for you..." It is reasonable to infer that this endorse-
Implications ment, although carefully integrated into the story in
This section elaborates on issues related to the mar- a relevant way, will appear momentarily novel and
keting impact of hybrids that are relevant to both unexpected to an audience engrossed in the movie.
theory and practice. Specifically, we appraise the pros (The objective of this careful integration process is
and cons of hybrids by reviewing factors (a) that mo- not to hide thq product placement itself, but to hide
tivate/justify their use and (b) that diminish their its commercial intent. Thus, the placement is designed
appeal. Most advantages associated with hybrid mes- to stand out, and also to appear in context.) Under
sages (from the sponsor's perspective) appear to be the circumstances, the von Restorff effect will predict
rooted more in perception than in reality. That is, high levels of post-movie audience recall of the placed
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sponsors seldom have concrete evidence that hybrids product.

offer real advantages over other forms of marketing Although prior (non-proprietary) research address-
communications. Nevertheless, the growth of hybrids ing recall of product placement episodes is limited to
indicates that many sponsors perceive them as valu- just one study, it offers evidence in line with the
able; therefore, it is fruitful to explore plausible theo- preceding prediction. Steortz (1987) conducted a tele-
retical rationales that support such perceptions. The phone survey to assess the recall of product place-
following analysis of these rationales is organized ments in movies that respondents had viewed a day
around recall and persuasion variables because they earlier. This survey covered 30 products placed in 6
are widely used to assess the impact of marketing feature films and provide preliminary support for the
messages. Space constraints prevent a discussion of earlier interpretation of recall impact (the average
all hybrid message types under each rationale. More- brand recall score was found to be 38 percent). As
over, a given rationale may apply more to some hy- Steortz points out, actual recall of a product place-
brid types than others. Therefore, attention is re- ment may also depend on other factors: whether the
stricted to hybrid types that are most germane to the product is displayed in the background or in close-up;
context discussed. whether it is explicitly mentioned in the script;
whether it is endorsed by a favorable actor; the dura-
tion of the exposure, etc. For instance, Steortz found
Recall that movie placements involving visual and verbal
A theoretical framework for assessing the impact of product identification had a higher average recall (57
a product placement (on subsequent audience recall) percent). Recall is considered a crucial gauge of a
is provided by an extremely robust memory-related product placement's effectiveness, and proprietary
phenomenon, which Lynch and Srull (1982) elegantly studies often use recall statistics to deduce a
summarize as follows: placement's value to its sponsor (see Sharkey 1988).
Information that is novel or unexpected seems to
capture one's attention, is processed more exten-
sively and subsequently is much more likely to be Persuasion
recalled than information that is redundant or ex-
pected to appear in a given context. For example,
To assess the persuasive impact of hybrids, we draw
von Restorff (1933) found that almost any tech- on three theoretical rationales: attribution theory, clas-
nique that served to increase the novelty of par- sical conditioning principle, and the modeling para-
ticular items or led them to be unexpected en- digm. Attribution theory implies that the persuasive-
hanced the subsequent recall of those items. This ness of a message is adversely affected if the recipient
has become known in the memory literature as the infers a bias in the message communicator. For ex-
"von Restorff effect" (p. 32). ample, there is evidence that a reporting bias (i.e.,
Because audiences do not anticipate a product-re- the recipient believes that the communicator's will-
lated message while watching a movie, the relevance ingness to convey honest/accurate information is com-
of the von Restorff effect stems from the "surprise" promised) lowers message persuasiveness and is ac-
 38 Journal of Adverti8ing

companied by inferences of communicator insincerity (e.g., Miller beer) exercise control over the message
and manipulativeness (Mills and Jellison 1967; Eagly, by imposing stringent guidelines on movie producers
Wood, and Chaiken 1978). The concept of reporting to avoid negative paired-association ("If it's a scene
bias is similar to a lack of trustworthiness: both no- involving drinking and driving we'll either try to
tions consider whether the communicator conveyed change the scene or pull the product," Lang 1990, p.
his or her true beliefs (Haas 1981, p. 160). Because 36).
the communicator apparently has nothing to gain Given its conceptual link to vicarious learning, the
from the persuasion attempt in masked-spokesper- modeling paradigm (Bandura 1977) is relevant to
son messages, recipients are unlikely to perceive a persuading media audiences (Nord and Peter 1980).
reporting bias, or more likely to attribute trustwor- For instance, product demonstrations through mod-
thiness to the spokesperson. In contrast, given the els (e.g., actors) can facilitate learning, particularly
common knowledge that spokespersons are paid to when they experience positive consequences follow-
provide product endorsements in ads, audiences may ing product use. Thus, product placements, program
be predisposed to infer a reporting bias in such cases. tie-ins, and PLes that reinforce product-use through
The potential role of classical conditioning in per- models help individuals vicariously acquire brand
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suasion is well known (Gom 1982); we therefore limit preference and/or consumption behaviors that ben-
discussion to two brief points. First, the development efit the sponsor. (Note that the sponsor need not al-
of a positive "paired-association" between an uncon- ways be a product manufacturer and could even be a
ditional stimulus (e.g., a favorable endorser image) retailer. Enhanced consumer learning was evident
and a conditional stimulus (e.g., the product) is the when the retail chain Target aired PLes and found
crux of this paradigm, when celebrity spokespersons that consumers required fewer in-store product dem-
are involved in ads (see Nord and Peter 1980 for onstrations and that products were sold more quickly
examples), product placements, or PLCs. Because ad - Fitzgerald 1992.)
messages are relatively short, success at generating Note that ads featuring models also facilitate con-
such paired-association often requires an obtrusive sumer learning to an extent. However, hybrid mes-
and expensive campaign of message repetition. In sages that feature models have a greater potential to
contrast, the editorial environment for both place- engender learning because their editorially-disguised
ments and PLes lasts considerably longer, and per- environments (and relatively longer duration) pro-
mits repetition/reinforcement of the paired-associa- mote audience identification with both the model and
tion in a natural fashion; more importantly, this pro- the message. Consider product consumption behav-
cess is also relatively less expensive (RDsenthal1989). iors modeled in either a placement or program tie-in
The movie Cocktail illustrates the notion of repetitive context: people may use products that they see fic-
placements: it contains several scenes where celeb- tional characters (enacted by models) use because
rity actor Tom Cruise is shown drinking Miller beer they identify with, and want to be like, those charac-
(Kalish 1988). ters. Kelman (1958) offered a theoretical account of
Second, it is vital to focus attention on a converse this identification process:
issue in a product placement context, i.e., avoiding a ...the individual accepts influence because he wants
negative paired-association that can damage a to establish or maintain a satisfying, self-defining
product's image. For instance, Caterpillar Inc. was relationship to another person or a group. '" The
dismayed to discover the strongly negative role ac- individual actually believes in the responses which
corded its products in some movies (Caterpillar equip- he adopts through identification, but their specific
ment was used as a weapon of destruction in the content is more or less irrelevant. He adopts the
induced behavior because it is associated with the
movie Grapes of Wrath, and symbolized the oppres- desired relationship. Thus the satisfaction derived
sive force which drove Dust Bowl victims off their from identification is due to the act of conforming
land). This company later adopted a two-pronged ap- as such (p. 53).
proach to product placement: dissuading negative
product portrayals in movies with threats of legal Disadvantages
action, and being receptive to positive ("heroic") prod-
uct roles, such as that involving a Caterpillar Wheel- Hybrid messages are also characterized by several
loader which prevents disaster at a construction site disadvantages, some of which are not readily appar-
in the television special A Brady Christmas (Chicago ent. First, the audience impact of hybrids appears to
Tribune 1988). In general, many placement sponsors be less direct and less immediate, in comparison to
 December 1994 39

traditional communication devices such as advertis- story" (Rosen 1990, pp. 49-50).
ing. These problems are compounded by the absence A final disadvantage is that many hybrid types
of reliable measures to assess the cost/benefit tradeoff entail substantial risk. Movie placements may be un-
of hybrids. Key indices such as CPM (cost per thou- certain investments because both "product exposure
sand) were unavailable for product placements until and money spent can simply evaporate if a movie
recently (Rosenthal 1989), and the measures currently flops" (Rosen 1990, p. 49). One measure of the risk
available are not as rigorous as those for ads. Fur- associated with PLes is their failure rate, which is as
thermore, there is no established measure to assess high as 85 to 90 percent (Jefferson and King 1992;
the persuasiveness of hybrids. (pLCs are a notable Marketing News 1991). Another risk of PLes may be
exception. Because the PLC usually represents the their poor image, attributed by industry observers to
only marketing support for the product it features, their usual pitch for "gimmick" products offered by
the product's sales volume is a good proxy for persua- relatively unknown manufacturers. Although these
siveness). factors diminish the appeal of PLes for well-estab-
Second, although the effectiveness of any hybrid lished brands, this situation may change markedly
hinges on the sponsor exercising control over the mes- even if a few PLes succeed in a big way. Interest-
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sage, such control sometimes dissipates in practice. A ingly, one prominent brand recently used a prime-
good example of this is the legal battle between Black time slot for its PLe (Goldman 1993). With respect to
and Decker (B&D) and 20th Century Fox Film Corpo- other hybrid types, sponsors typically face a different
ration (Fox) concerning a movie placement deal in set of built-in risks. For example, the masked-news
DieHard 2. Fox had initially committed to a close-up messages reviewed earlier required corrective disclo-
shot of B&D's Univolt cordless drill in this film, "on sure efforts that potentially damage the credibility of
the understanding that B&D will commit to a sum- sponsors.
mer promotion supporting" the film (Colford 1990a,
p. 57). However, Fox cut the product placement seg- Future Research Agenda
ment from the final version of the film, causing B&D
to seek damages for investment in campaigns built The theoretical concept of hybrid messages is new
around the placement deal (e.g., an ad campaign with and unfurls an exciting agenda for future research.
the theme "Black & Decker Drills 'Die Hard" - see This is summarized in Table 1 under two areas: mes-
Geyelin 1990). B&D also cited a loss of credibility sage impact and public policy. Pursuit of research
with its customers from cancellation of these cam- issues listed under these areas may yield important
paigns and decided not to get involved with product insights for sponsors and policymakers respectively.
placements in the future.
Third, some hybrid types are limited in availability Message Impact
and applicability and, therefore, cannot accommodate
planning. For example, the number and scope of pro- There is a pressing need for empirical research that
gram tie-in opportunities pale in comparison to the addresses the following key question: Are hybrids
abundance of opportunities available in the advertis- more effective than other communication devices (such
ing marketplace. This problem also extends to prod- as advertising and publicity)? Schwarz, Kumpf, and
uct placements. Even if moviemakers offer a great Bussman (1986) report preliminary evidence support-
number of placement opportunities, only a few ofthese ing this premise. In their study, college students read
may be available and/or suitable for any given spon- a persuasive message about a textbook which was
sor. Furthermore, no sponsor can accurately assess labeled either an advertisement or a book review in a
the quality or number of placement opportunities journal (i.e., the same persuasive message presented
available in the future, thus precluding detailed plans in an editorial format analogous to a hybrid). The
for placements in the marketing budget. Placements effectiveness of the message (as assessed by subjects'
may even be inappropriate for some sponsors, except intention to read/buy the book) in the advertisement
under rare circumstances. Consider the following com- format was found to be lower than that of the edito-
ment from the director of advertising at Bassett Fur- rial format. Future research should attempt to repli-
niture Company: "a sofa is a sofa, and in a movie cate this pattern of results in field settings. Research-
there's no way to tell if it's ours. Now, if they did a ers should also explore whether some hybrid types
film where they unpacked a crib and you could see generate more effective message impact than others,
the box with our name on it, that would be a different and whether different message formats within a given
 40 Journal of Advertising

Table 1
A Research Agenda for Hybrid Messages

Research Focus Research Questions Research Approach/Model

Message impact Do hybrids generate more marketing Field/laboratory studies

(e.g., recall/ impact than advertising or publicity • Model for Recall:
persuasion/ messages? ~ Von Restorff Effect
behavioral measures) If so, what factors moderate this • Models for Persuasion:
impact? ~ Attribution Theory
~ Classical Conditioning
~ Modeling Paradigm
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Does knowledge about the true nature of Field/laboratory studies

hybrid messages affect their impact? • Model for message impact:
If such knowledge becomes available, is ~ Immunization Effect
a backlash effect likely?
If so, what strategies can sponsors pursue
to protect the impact potential of hybrids?

Public policy What is the extent of public awareness of, Cross-sectional surveys
and attitude toward, each hybrid message
type?

What implications do hybrids carry for Surveys/field studies to explore

consumer education efforts? new public policy initiatives
If awareness of hybrids is low, what mass
forewarning strategies can effectively
increase it?

Are some audience segments (e.g., children) Critique of current policy

more vulnerable to hybrids than they are
to other marketing messages?
Is it appropriate for the FTC to extend
advertising regulations (e.g., rules that govern
deception in advertising) to the context of
hybrids?

What should be the tradeoff between a International comparisons of

consumer's rights and the rights of historical policy toward
commercial sponsors? established hybrids

Can non-commercial hybrid messages Field/laboratory studies

serve socially useful purposes? • Model for normative
messages is:
~ The Harvard Alcohol Project
 December 1994 41

hybrid type are differentially effective. Englis and mation sheet (FTC 1989) that explains the character-
Hayes (1991) offer some insights on the latter issue istics of PLes, and highlights how unscrupulous mar-
forPLCs. keters can use PLes for deceptive ends. Such con-
Message impact should be assessed at recall (cogni- sumer education efforts can be effective only if they
tive), persuasion (affective), and behavioral (conative) impart some "immunity" against deception.
levels. Some theoretical rationales underlying the There is some research evidence supporting such
perceived advantages of hybrid messages (for recall an immunization effect. Early studies in this area
and persuasion) were reviewed earlier, and they await (Citron and Harding 1950; Collier 1944) suggest that
empirical validation. the resistance to propaganda messages can be en-
At the behavioral level, available evidence presents hanced by prior training in the critical evaluation of
a mixed pattern. Hybrid messages sometimes appear these messages. Further, forewarning subjects about
to register clear sales impact, e.g., Winski (1982) re- the persuasive intent of a forthcoming communica-
ports that sales of Reeses Pieces candy increased sub- tion appears to diminish its persuasive impact (Haas
stantially following this brand's placement in the and Grady 1975; Kiesler and Kiesler 1964) because
movie E.T.; Leinster (1987) notes that Ray Ban's Way- forewarning encourages counter-argumentation (petty
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farer sunglasses became enormously popular when and Cacioppo 1977). This line of reasoning raises in-
actor Tom Cruise used this brand in the movie Top teresting issues for future research: can public knowl-
Gun. However, the results are less impressive in other edge about the true nature of specific hybrids go be-
instances. Similarly, there is no dearth of successful yond imparting immunity and generate an unjusti-
PLes (see Wojtas 1990 for examples), yet sponsors fied backlash instead? (E.g., if people learn about a
like Club-Med and Volvo were less than enthusiastic few PLes that are very deceptive, will they tend to
after trying PLCs (Jefferson and King 1992). From a brand all PLCs as deceptive?) If so, what strategies
research standpoint, it is important to identify fac- should sponsors pursue to protect the impact poten-
tors that moderate the degree of success of hybrid tial of their hybrid messages?
messages. It is likely that audience perceptions of
"fit" across key characteristics on product/medium/ Public Policy Issues
communicator/message dimensions are important in
this regard. Arguably, the success of the Reeses place- Awareness. The immunization effect also has impli-
ment can be attributed to the following combination cations for policymakers. To the extent that a lack of
of characteristics: a legitimate product role in a cli- awareness about the true nature of hybrids height-
mactic scene involving likable characters of a popular ens the public's vulnerability to deception,
movie. Other preliminary inferences, based on expe- policymakers will find answers to the following re-
riences of the ABC network, are as follow: PLCs work search questions useful: What is the current level of
better under a hard-sell message mode (than a soft- public awareness of various hybrid types? If aware-
sell mode), and they are more successful for lower- ness levels are low, what types of mass forewarning
priced items when compared to higher-priced items strategies are most effective in boosting awareness?
(Bird 1992b). A final conjecture contrasts PLCs with Cross-sectional surveys and field experiments are re-
product placements/program tie-ins. Because PLCs spectively appropriate for investigating these ques-
offer lots of product information, they may work tions.
through high-involvement processes. On the other The need to establish public awareness about PLCs
hand, the relatively transient placement/tie-in epi- is especially acute because consumer interests may
sodes hardly present detailed product information be threatened by a combination of factors. First, past
and, therefore, probably work through low-involve- studies (Hayes and Rotfeld 1989; Parsons and Rotfeld
ment processes. Carefully controlled field/laboratory 1990) suggest that the record of broadcast/cable chan-
studies can shed more light on these and other mod- nels (in terms of evaluating the potential of PLCs to
erating factors. injure consumer interests before airing them) is less
Another important research question concerning than satisfactory. Second, using publicly available
message impact merits investigation. If consumers documents, we reviewed FCC actions to enforce spon-
are informed about the persuasive intent behind hy- sorship identification requirements during 198811989;
brids through training or educational efforts, will this in this period, several television stations erroneously
knowledge affect how hybrids are processed? For in- concluded that the PLCs they broadcast did not re-
stance, the FTC disseminates, on request, an infor- quire explicit sponsor identification announcements.
 42 Journal of Advertising

Thus, it is unlikely that all television stations strictly guidance in this regard. In interpreting the constitu-
adhere to the FCC sponsorship identification require- tional protection of free speech, the courts have his-
ments while broadcasting PLCs. Third, there is some torically made a distinction between commercial and
concern that consumers may fail to realize that PLCs non-commercial speech (Cohen 1978; Lively 1987;
are not regular programs (Broadcasting 1990). Fourth, Nutt 1988). Although commercial speech has enjoyed
it is unclear to what extent child audiences are aware First Amendment protection since a landmark court
of PLCs, and how such awareness (or the lack thereof) ruling in 1976 (see Virginia State Board ofPharmacy
affects their processing of PLCs. These research is- v. Virginia Citizens Consumer Council, 425 U.S. 748,
sues are important because child audiences may be 773 [1976]), commercial speech has not been accorded
more vulnerable to deception, and because PLCs di- the same degree of constitutional protection as non-
rected at children often acquire a host-selling role commercial speech. Further, the courts have consis-
(i.e., use of program characters to promote products). tently held that First Amendment protection does
Furthermore, many toy brands have spawned televi- not preclude the government's authority to regulate
sion programs (e.g., Teenage Mutant Ninja Turtles) false and misleading commercial speech (see ZaucU!rer
aimed at children, and toys related to successful tele- v. Office of Disciplinary Counsel, 471 U.S. 626, 638
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vision programs meant for child audiences (e.g., [1985]; Sears Roebuck & Company v. FTC, 676 F. 2d
Sesame Street) have proliferated (following Greenfield 385 [9th Cir, 1982]; Central Hudson Gas & Elec. Corp
et al, 1990, these are, respectively, Toy-Based Pro- v. Public Service Commission, 447 U.S. 557, 563
grams and Program-Based Toys). [1980]).
Fifth, the FCC has argued that it lacks resources to Given the dominance of this commercial/non-com-
evaluate every PLC in terms of whether it harms mercial dichotomy in past court decisions involving
consumer interests (see Parsons and Rotfeld 1990). First Amendment rights, what should be the degree
Moreover, current policy toward regulation of PLCs of such protection accorded to hybrid messages (which
is characterized by ad-hocism. The FTC says that do not appear to be commercial speech, but serve the
complaints on PLCs will be reviewed on a "case-by- purpose of commercial speech)? A vigorous policy de-
case" basis (FTC 1990). This approach may be justi- bate is needed here, and researchers can contribute
fied because (a) the Commission's efforts in this area conceptual insights. Although not explicitly dealing
are of recent origin, and (b) only a limited number of with the notion of hybrid messages, one FTC case
cases have been investigated so far (Lipman 1990b). sheds some light on this issue. In 1986, the FTC
Nevertheless, it is unclear what precise standards issued a complaint against an R. J. Reynolds ad (which
are used to evaluate these cases. Given this uncer- used an "editorial" format) contending that this was
tainty, a default policy option may be to extend FTC an instance of commercial speech that provided false
standards governing deception in advertising mes- and misleading interpretation of a scientific study
sages (see Ford and Calfee 1986 for an excellent re- known as the Multiple Risk Factor Intervention Trial
view) to hybrid messages as well. However, the ap- ("MR FIT"). An administrative law judge (ALJ) ruled
propriateness and adequacy of this default option that this ad was not commercial speech and, there-
merits careful research because consumers are likely fore, was entitled to full First Amendment protection.
to comprehend the persuasive intent of advertising The FTC later reversed the ALJ's decision (see FTC
more readily than hybrids. Moreover, there is no con- Docket No. 9206, Order, March 4, 1988) and issued a
ceptual equivalence between an advertising message "cease and desist" consent order against R. J. Reynolds
and a hybrid message because their definitions are in 1990 (see FTC Docket No. 9206, Decision and Or-
different. Researchers can make a fundamental con- der, May 8, 1990). In a dissenting statement, Com-
tribution to public policy by establishing scientific missioner Mary L. Azcuenaga characterized the con-
bases for deciding whether similar or different policy sent order as "unusually and conspicuously weak."
is needed for advertising and hybrid messages. She further wrote:
Consumer Interests Versus First Amendment Rights. ... the remarkable concessions that the majority is
A key part of this policy debate should focus on bal- willing to make to settle this case suggest a certain
ancing the protection of consumer interests on the squeamishness about the Commission's authority
one hand with attention to the First Amendment to regulate deceptive advertisements that look like
rights of product sponsors on the other. This tradeoff editorials, which is the only defense that Reynolds
has asserted. Reasonable people may disagree
addresses what policy should be in a normative sense,
about whether the First Amendment protects a
and some landmark court decisions provide initial
 December 1994 43

deceptive advertisement that looks like an edito- dialogue consistent with the project's objectives have
rial, such as the so-called KMR FIT" ad that appeared in eighty network television episodes in two
Reynolds ran, but we can do more to protect con-
television seasons (DeJong and Winsten 1990). There
sumers if we take a firm position one way or the
other. If we announce that the Commission will is evidence that social modeling films can help deter
not challenge advertisements that are designed to smoking in adolescents (see Evans et al, 1981), and
masquerade as editorials, we will warn consumers future research should explore whether these find-
to be on guard and to exercise any natural suspi- ings can be extended to the area of responsible alco-
cion they may have regarding the truth of a paid- hol consumption and other socially desirable behav-
for editorial advertisement. iors.
On the other hand, if we intend to regulate such
ads, we should do so decisively and demand rem- Summary and Conclusions
edies that are as rigorous as in any other deceptive
advertising matter. By accepting this pared-down A primary contribution of this research was to syn-
order, the majority implicitly asserts that the or- thesize developments in the media marketplace that
der is adequate and signals to the public generally carry enormous public policy implications. Specifi-
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that the Commission is protecting consumers. At cally, it focused on paid messages that attempt to
the same time, however, it signals to cigarette com- persuade media audiences without explicitly acknowl-
panies and other advertisers, through the specifics
edging the persuasion attempt. Because audiences
of the order, which will be studied by their legal
experts, that they may shade the truth, or even are unlikely to be aware of such persuasion attempts,
deceive consumers outright, if they choose to try and may process them less defensively than explicit
the advertising "editorial" approach in the future. attempts to persuade, the "hidden but paid" hybrids
Although certainly the Commission does not in- raise questions related to consumer welfare and edu-
tend this result, in a very real sense the Commis- cation.
sion itself is practicing a deception on the Ameri- We first employed the hybrid message concept as a
can consumer, and a dangerous deception at that. platform to conceptually integrate several "hidden
In framing the policy toward hybrid messages, it is but paid" messages such as product placements, pro-
also useful to critically evaluate policies of other na- gram tie-ins, PLCs, and various types of masked com-
tions in this area. Boddewyn (1982) has commended munications. This integration rests on the remark-
the value of cross-national policy comparisons, and ably simple proposition that all such messages are
Armstrong and Brucks (1988) have demonstrated the hybrids because they combine appealing elements
usefulness of such comparisons in the area of adver- from the definitions of advertising and publicity. These
tising directed toward children. A similar critical message types were further explored from several
evaluation of historical policies adopted by other na- (historical, psychological, and regulatory) perspectives
tions toward hybrids should be useful in developing to obtain insights on questions of interest to consum-
comprehensive policy. ers, advertisers, and regulators: Why might hybrid
messages be more effective? What explains the high
Social Implications levels of recent growth in hybrids? What are the ethi-
cal and legal considerations associated with these
Because hybrids carry powerful persuasive poten- types of messages? Finally, an elaborate research
tial, they can be creatively adapted to serve some agenda was presented for this new area. Because this
socially useful purposes. Such adaptations can be char- area raises important policy questions and is rela-
acterized as non-commercial hybrid messages, through tively new (empirical work is almost non-existent),
whose dissemination the medium earns intangible several exciting research challenges lie ahead.
rewards (such as the satisfaction of positively influ- This study underscores the need for a balanced
encing society), as opposed to the economic rewards appraisal on hybrids. That is, the merits of hybrids
that accompany commercial hybrid messages. For in- should be evaluated in the context of the considerable
stance, the Harvard Alcohol Project (HAP) has used weaknesses they also bring. On balance, hybrids
the television medium to propagate socially respon- hardly constitute a threat to the field of advertising.
sible alcohol consumption behavior via "concept" place- Despite the impressive growth of hybrids in recent
ments in network programs. HAP sought the coop- years, key considerations necessary for preserving
eration of television writers to present the "desig- the identity and editorial integrity of the media will
nated driver" concept as a social norm; as a result, act as natural barriers to an overwhelming shift to-
 44 Journal of Advertising

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