Back in December, I posted an entry about a discussion on product placement in soaps from Michael Gill's Media Domain Board for As the World Turns.
At the time, everyone who posted on the thread agreed that product placement would be more effective, more natural, and possibly the only way for soap operas to survive, longterm, and people began to debate particular issues about how product placement should be handled.
One of the characters, Margo Hughes, came in with a bag of groceries, filled with Procter & Gamble merchandise. Only a few astute viewers even picked up on the fact that the majority of the items in her grocery bag were P&G items, which is the company that produces ATWT. In this case, the script called for her to be unloading her groceries in particular, and the types of items inside were completely plausible for a trip to the grocery. The items were never referenced directly, but it just felt natural--especially compared to the "Brand X" products used too often in daytime television.
These characters in the Hughes family live in the same branded world we do, and that's the type of realism that product placement done correctly can bring.
Of course, a few fans chimed in who were almost completely anti-P&G products being in the show, saying they were sickened by it, etc., but this seems to be more anti-commercialism rhetoric than anything. The majority of the viewers indicated that they found it natural, noticed but didn't pay close attention and some felt it actually added to the show to have those real products used. And most of them, the loyal and active viewers who post on message boards, also saw supporting product placement as a way to support the show and its sponsors.
Alec's the product placement expert around here, though, so I would love to have him weigh in as well...