diff --git a/example/index.html b/example/index.html
index 9c72146..50802e0 100644
--- a/example/index.html
+++ b/example/index.html
@@ -38,9 +38,9 @@
 
     <div ng-controller="MainController">
       <form>
-        <p><input floating-label type="text" placeholder="First Name" id="first-name"></p>
-        <p><label for="last-name">Last Name</label><input floating-label type="text" placeholder="Last Name" id="last-name"></p>
-        <p><textarea floating-label placeholder="Address" id="address"></textarea></p>
+        <p><input floating-label type="text" placeholder="First name" id="first-name" ng-model="firstName"></p>
+        <p><label for="last-name">Last Name</label><input floating-label type="text" placeholder="Last Name" id="last-name" ng-model="lastName"></p>
+        <p><textarea floating-label placeholder="Address for {{firstName}} {{lastName}}" id="address"></textarea></p>
         <p><input type="text" value="blank" /></p>
       </form>
     </div>
diff --git a/lib/angular-floating-label.js b/lib/angular-floating-label.js
index cb67c8d..992488d 100644
--- a/lib/angular-floating-label.js
+++ b/lib/angular-floating-label.js
@@ -9,6 +9,13 @@
         link: function(scope, el, args) {
           var options = scope.options();
           el.floatingLabel(options);
+
+          var label = $('label[for="' + el.attr('id') + '"]');
+
+          args.$observe('placeholder', function(value) {
+            label.text(value);
+          });
+
         }
       };
     }]);