Extant research in product placement has focussed on cognitive aspects of effective product placement, with less consideration for the emotional effects or the type of product being placed. The focus of this paper is to examine how plot valence influences the effectiveness of product placements and to consider whether the ethicality (or controversy) of the product matters. The present study draws upon emotional contagion theory to test our research question. Based on two experimental studies, the findings show that product placement in a positive (vs. negative) plot enhances positive brand attitudes and purchase intentions, and positive mood mediates this effect. Further, regarding controversial products, the influence of positive (vs. negative) plot is also mediated by increased engagement. Our findings guide marketers, production houses and product placement agencies, particularly those selling controversial products, in developing effective product placement strategies. © 2025 Australian and New Zealand Marketing Academy. This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage).