The theme of this graduate thesis is "Product placement and “It’s Impact on Consumer Behavior". This work explains the concept of “product placement” and how and why this way of advertising has an impact on consumers behavior. Beside the notion itself, this work cited all forms of this kind of advertising and as well as the ways of displaying "product placement.” Using primary and secondary data that were collected for the purposes of this work, it is obvious that the vast majority of examinees were able to recognize and notice product placement. Such types of advertising mostly appear in the media, such as movies, series, and the Internet. Given to the consumer's intolerance on classic advertising and "pop out ads,” brands have opted for another type of advertising, the so-called “product placement.” Such advertising can be fully integrated into an action so that sometimes consumers are unaware that they are being exposed to advertising, therefore they are able to develop positive feelings towards these particular brands. By doing this they enable the audience to develop a stronger bond with the brand and have the justification for their purchase decision. Namely, behind any product or service that appears in various movies or TV shows, stands a brand that usually (but not always) pays for their logo to appear on screen. Product placement, also known as "hidden marketing,” has been in practice for decades. However, manufacturers have become much more sophisticated in the way they use it. Product placement creates explicit and implicit advertising effects. For example, based on product placement, consumers can recognize the brand after seeing it in the content. They can also create and evaluate different attitudes towards brands as well as encourage their shopping habits. Brands that are being connected with attractive characters or famous people attract more consumers. Although this is a lucrative job currently, some consumers believe that such advertising is unethical, dishonest, and deceitful for the younger population that is more susceptible to various influences.