“Morning Joe” is a successful US weekday talk show with more than 500,000 viewers in which the latest news are discussed. The main show master is Joe Scarborough, a real all-rounder, who has been engaged in a great variety of jobs and activities. Considering the rather serious subject matter of the show and its broadcasting time slot (6am-9am), it is no surprise that Joe and his guests need something that keeps them and the discussion going: Coffee. Many cups of coffee are consumed in the three hour discussion session and they are consumed out of the famous Starbucks cups, which brings us to the actual point of the article – the co-operation of “Morning Joe” and Starbucks and in how far product placement is an effective marketing tool.

Here comes a little foretaste…

The breakfast co-operation – the first of its kind
Since Joe and his guests have been drinking their coffee out of Starbucks cups for quite some time already, speculations regarding a possible co-operation have already been going on for a while. Most viewers were convinced that this kind of product placements ensures MNSBC with some kind of financial compensation. However, until recently, no co-operation existed between the TV channel and the coffee chain. It was only a few weeks ago that the two parties actually announced their co-operation. The exact terms of the co-operation are subject to much discussion. However, rumour says that Starbucks pays MSNBC $10 million for the one-year deal. In return Joe, his colleagues and his guests continue to enjoy their Starbucks coffee in Starbucks cups during the show. Additionally, voice overs have been integrated in the show and the Starbucks logo as well as its slogan is from now on part of the show’s logo – “Morning Joe brewed by Starbucks”.

Two (bene)fitting partners…

• The economic crisis has made financial resources more valuable and more difficult to find and tap into than ever before, thus a well paying co-operation partner such as Starbucks is very attractive and desirable.
• Starbucks benefits from increased publicity via TV exposure. Having the product properly integrated into the show addresses the audience in a whole new manner. This way Starbucks hopes to expand its “just-quickly-grab-a-latte-to-go” customer base.

…and the possible hazards they face

• Critics of the co-operation argue that a truly sophisticated and intellectually demanding news show should abstain from making use of such advertisement techniques, since it undermines the credibility and integrity of the show.
• Besides that some crtics are also afraid that the co-operation will displease Starbucks current customers, since many of them are devoted Liberals, whereas Joe Scarborough, is a pronounced and well-known Conservative. Pessimists argue that this may cause a negative image transfer from the testimonial to the Starbucks brand. In how far this is a realistic threat is open to debate, since others claim that Starbucks customers cannot be classified on the basis of who they vote for.

Product placement – a US phenomenon?
Advertisement in the US enjoys significantly more freedom than here in Germany. Although the advertisement for alcohol and cigarettes underlie strict legal regulations, comparative advertisements, product placement, and alike are common practices. According to the New York Times the more relaxed US marketing environment is likely to gain grounds in Germany, since factors such as the numerous imported American TV series and varying laws within Europe (e.g. Italy has more lenient advertisement regulations than Britain or Germany) enhance this development. Moreover, a press release in the marketing paper Horizont (German) pointed out that from 2010 onwards it is likely that product placement will no longer be prohibited by law. The German TV channel RTL for example has already engaged in product placement logo designing. Moreover, experts cited in the article believe that product placement will become extremely popular and important in the next few years and are likely to make-up for approximately 10 percent of the channel’s financing costs.

The success of product placement, especially in co-operation with a news show still needs to be determined. The viewer reactions and rates in the case of “Morning Joe” will give us an idea of how popular this type of co-operation will become. Until then we can only wait and see and – in the case of Joe Scarborough – drink Starbucks coffee.