How Does Undercover Marketing Work?

What is undercover marketing?

We are all too familiar with companies pressing us with ads to buy their products. We see it everywhere, whether on TV during commercials, sports games, or on the billboards during our daily commutes. If you ever felt fed up with the constant exposure of ads, you are not alone. Often, although it might affect us subconsciously, we choose to turn our minds off to the ads. Undercover marketing subsequently came about as a result of consumers feeling jaded towards ads.

Think about undercover marketing as a stealthy way to market a product to people. Unlike traditional ads where it is obvious that you are being marketed towards, undercover marketing is exactly what its name suggests. With undercover marketing, the person viewing the ‘ad’ isn’t aware of it.

How does it work?

If you are sitting there wondering how on Earth you would not know your being marketed towards just bear with me for a minute whilst I explain the subtle ways of this marketing practice.

There are three main ways to execute an undercover marketing scheme:

  • Ad spies
  • Leaners
  • Product placements

If you want to read up more on marketing strategies check out our article.

Ad spies

If the name didn’t sound covert enough, the main goal of an ad spy is to talk about the product and endorse it, all whilst avoiding suspicion. They tread a fine line between praising the product enough for it to seem amazing and a must buy, but not too much that it raises suspicion of a marketing attempt. For example, lets say there is a new energy drink and that the owners of the business are giving out samples. Using ad spies, the owners of the business could have a bunch of people go over to sample their product and give it extremely good praise on the spot. Creating a group around the sampling booth can increase interest in the product from an observer. Another example would be a celebrity talking about a new product and how they use it.

Leaners

Leaners are very similar to ad spies in the way that they appear in public and try to put the product out there. They differ in the way that leaners actually interact with people by striking up conversations with them. They will stick to a script that will eventually allow them to plug in talks of the product. For example, a leaner could go into a high end club and strike up conversations that ultimately allow them to plug in their client’s product, a certain drink for example. Going on about how good the drink is and how they don’t drink anything else after trying it.

Product placements

This type of undercover marketing is very interesting and goes to show that the old phrase “out of sight out of mind” holds a lot of merit in the marketing world. If a product can sneakily appear in your life somehow and you are unaware its an advert you may even be more inclined to buy it for a number of reasons. Firstly, it can show that the product is desired and valuable as other people are consuming it. Another reason is if the product is placed in a movie and you really enjoyed that movie, that feeling of enjoyment may transfer to the product and make it more desirable. Product placements are very common in movies and are extremely powerful.

Examples of product placements in films

  • E.T“- In this movie, a chocolate snack from Hershey’s “Reese’s pieces” was placed in a scene. Because of this placement, Hershey’s increased 65% in profit according to a 1983 People Magazine Article.
  • The Italian Job”- Following the movie’s release, the car received a 22% increase in sales over its previous year. A change that seems to only be caused by the car’s placement in the movie.

The success of product placements don’t just stop at movies. An unusual product placement was done by a Massachusetts firm which used fake newspapers and planted passengers. The newspapers had the firms ad on the back, an attempt to display the firm is established and successful. These ‘passengers’ would continually ride the train pretending to read the newspaper whilst flaring the back towards the passengers.

Advantages and drawbacks

There are three main advantages to undercover marketing:

  • It reaches customers jaded towards traditional in your face advertising.
  • Much cheaper than traditional advertising.
  • Get’s people excited for the product due to a sense of discovery.

Like with everything, there are some drawbacks to undercover marketing. Some consumers will perceive it as deceptive and unethical. This may make the consumer put off by your product and business for good. Another big thing is that there are laws in place that regulate advertising and what counts as deceptive conduct. Meaning you could get into legal trouble if your undercover marketing strategy isn’t exactly legal. If thinking about launching your own undercover marketing strategy we recommend consulting a lawyer beforehand to determine the legality of it. Feel free to reach out to any of our expert lawyers specializing in the area and get a free quote.

Conclusion

Undercover marketing is a subtle and sneaky way businesses get you to buy their product. It tries to get the people that traditional ads don’t target well. Although it can appear dishonest and unethical, its results in boosting profits are undeniable. Next time you are out, try to turn your mind to see if you can spot any undercover marketing ploys.

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