This study extends product placement research by testing the impact of interactivity on product placement effectiveness. The results suggest that when children cannot interact with the placements in video games, perceptual fluency is the underlying mechanism leading to positive affect. Therefore, the effects are only evident in a stimulus-based choice where the same stimulus is provided as a cue. However, when children have the opportunity to interact with the placements in video games, they may be influenced by conceptual fluency. Thus, placements are still effective in a memory-based choice where no stimulus is provided as a cue.