Creativity in advertisements in the form, structure, content and the technology is required to hold the attention span of the viewers. Product placement or embedded advertisements is an alternative strategy adopted by advertisers to overcome limitations of effectiveness and legal restrictions of traditional commercial communication. The paper describes the communication effectiveness of product placement of three different types of products placed in three different movies and resumes the small body of research in the field with the help of a empirical research. A quasi-experimental study is carried out in UAE was designed in order to identify awareness and attitude effects of the product placements as well as general evaluations of conventional advertisements. The results indicate small effectiveness of communication by the product placement especially in recognizing the brand, though not always it leads to product enquire, but it generates awareness and interest in the product because of realistic appeal produced by the product placement in a world of realism. Product Placement in movies enhances the effects of celebrity endorsement of the products because it is in a movie setting and reveals the product utility and its features without directing the consumer unlike in a conventional advertisement. Therefore it makes product placement more acceptable. The research highlighted the enhancement of product assessment in the new form of advertisements.