Background: Advertising channels in today's marketplace are becoming more limited with the development of ad-free sources of entertainment. The phenomenon of product placements is therefore becoming one of the most important sources for advertising in media. Especially film productions have turned into a canvas for companies to display their brands upon.

Purpose: The purpose of this thesis was to investigate the case of product placements in Hollywood blockbuster movies. In particular, brand recognition and audience's ac-ceptance of a brand’s presence in movies were examined.

Method: A mixed method approach was applied in order to fulfill the purpose of this thesis and answer research questions. A questionnaire in the form of a handout and focus group discussions were used to collect quantitative and qualitative data from audiences consisting of international students. The questionnaires were handed out after the movies had been shown in a setting resembling that of a movie theater, meaning that respondents were not aware of the study beforehand and were therefore not biased. The focus group discussions gave us information needed in answering the second research question and getting more insights of the practice.

Conclusions: Our research showed that product placements in movies lead to brand recognition, and audience’s acceptance of a brand’s presence is influenced by congru-ency of product placement in movies. This outcome resulted from the combination of four determining factors: movie genre, execution factors, appropriateness in the movie setting and brand characteristics.