Consumers are passively exposed to most commercials in a conventional television environment unless they take active steps to avoid them. On the contrary, interactive product placements (iPPL) in an interactive television (ITV) environment would deliver the advertising message only upon the consumer’s request. Traditional product placements (PPL) aim to put the audience in contact with the advertiser’s brand through simple exposures, so traditional PPL studies focus on the effect on the consumer’s memory. This dissertation recognizes that the iPPL can generate actual interactions from the consumer while watching the program, and examines how the iPPL and its interactive natures can change the audience’s consumption patterns of programs and the advertising effectiveness in an ITV environment. The primary purpose of this dissertation is to predict the types of products, programs, and audiences that would generate improved effectiveness of iPPL before ITV becomes widely diffused.