It’s assumed movies use product placement for companies to promote their product, but it’s a two way street. A simple example is the transformers trilogy. Its generally seen as the movie with the largest amount of product placement in history, the video i put up shows relentless product placement. Instead of the companies going to the studios asking can they advertise within their movie, it was the other way round,with director Michael Bay actually promising to direct 5 commercials for General Motors if they allowed the use of cars that were not even released. It also helps production companies keep their costs down. In regards to the Studios and Production Companies, it offsets production costs. Products and / or services are provided free of charge to the Studios and Production Companies. The Departments of props, set decorations, wardrobe and transportation can save a sizeable amount of money by using product placement.Placement agencies. If there were no placement agencies, these departments would be forced to buy or rent these items. Therefore we see the reason behind product placement.