Product Placement

Today in class we were discussing product placement. Television advertising is in a tough place with the new technologies being offered. For example, with TiVo you can record all of your favorite TV shows allowing you to skip through all commercials, which means, no ads are being viewed.
Product placement is another way that product brands can be put on display for millions of viewers to see. The new James Bond Movie Quantum of Solice houses many examples of product placement. In this Article I found it goes on to explain all the product brands that are featured in the movie.
The Quantum of Solice is a major action picture, meaning it was very expensive to produce. Product placement is a way in which high priced movies such as the Quantum of Solice can be funded.
Is product placement enough to advertise brands? Or will the lack of ads being viewed on television via TV commercials going to really affect the advertising industry?
I think due to this the advertising industry is in trouble and those working within the industry need to think outside of the box. I feel advertising needs to go above and beyond product placement in order for the industry to survive.