The real question is if Duff Beer were to actually exist, how many college students would have memorable nights with this substance? Would their sales be naturally higher than anything that Oprah plugs on her show? Or does it depend on the psychology of the target audience? All of these awkward questions go back to my previous post in Unusual though processes.
Product placement could be a very successful way of marketing a product. Honestly, I think it will be more successful than TV commercials, especially with more and more people using DVRs. (I’m guilty of it too) Although my correlation with Duff Beer could be considered a form of celebrity endorsement as well as heavy product placement. It still is a form of sponsorship that could yield more benefits than TV commercials. When watching TV, I always see product placement as opportunities to gain leverage over other brands. It also shows great credibility. I am not a fan of FILA sneakers, but if I saw someone who was on a popular MTV show wear their sneakers in a tasteful fashion, I might think about adding it to my wardrobe just to change things up. I do feel that if you are a sponsor of a TV show or a network it would be wise to think about investing in this form of promotion.
We have all seen the success of celebrity endorsement, and the effect that the “Halo Effect” has on a product. Celebrity endorsements also show a product’s credibility not only as a good product, but as a high quality product or service. To get there, there has to be an insurmountable amount of work that has to be done to get there; from strong PR efforts, to getting the goods to the right stores in the right neighborhoods at the right times. The length of this credibility could always die down with the popularity of the celebrity, but it also has to do with the psychology of the consumer, or the fan. A fan could and should not be used as a savvy shopper, and would only be a fad shopper for a few months. The goal of a brand when thinking about celebrity endorsements is how to turn those fans into consumers. Consumers who think before their purchase, to see how it could benefit them, not just the lifestyle they are trying to live at the time.
Out of the two, if done properly, I think you could get a greater return on your investment through a celebrity endorsement. 
The reason being, is you need a good amount of money already to have a commercial, or be a sponsor of a show. However if you are a new product and a celeb finds out about you, you could be a success story in one day. The only issue with it is it could be as up and down as the stock market. And it should not be used as the top means of promotion, but when done right and integrated properly within the marketing plan it could yield high rewards.
