This week the introduction of product placement in UK television programmes has created a storm in the advertising industry. Since February the 28th, broadcasters can now charge brands for the placement of their products in certain television programmes.
According to Ofcom (2011), the UK broadcasting regulator, product placement is subject to certain rules. It will be allowed on all commercial channels, excluding the government funded BBC channels. It will be allowed in films, soaps, entertainment and sports programmes, but will not be allowed in children’s, news, current affairs, religious and consumer advice programmes. There are also restrictions on what exactly is allowed to be broadcast, therefore, the usual no tobacco, alcohol, escort services or gambling products. But more surprisingly no foods that are high in sugar, salt or fat and also prescribed medicines and baby milk?! So that means that companies such as Pizza Hut and Cow and Gate baby milk are out of the running for a spot in UK programmes.
Ofcom (2011) have taken the following measures, placing the 'P' symbol before and after any shows that feature product placement. I can see that Ofcom are trying to make the process as regulated and transparent as possible, but I think that this symbol may run the risk of insulting the intelligence of the audience.
Product placement has been something that has been apparent in the US since the 1980’s with many companies vying for a placement in the latest soap or blockbuster movie. UK audiences will be familiar with the burred red smudges that have the Coca Cola logo hidden behind them on American Idol and many other programmes that have been exported from the US featuring product placement.
The first company and programme in the UK to adopt this unique partnership is Nescafe and ‘This Morning’. According to a recent report in Brand Republic, Mindshare valued the deal at £100,000. It is also reported that ITV have confirmed this is the first of many more to product placements to come. They also clarified that editorial content will come before any product placement and will only be used where appropriate.
Product placement now provides another channel for advertisers to communicate to thier target audience, but is this a good or bad thing?
Some people may view the new rules on product placement as a bad thing. People have complained that they would feel bombarded. However, isn’t the sight of brands on television a reflection of our everyday lives in which brands play a massive part? And aren't brands already featuring on TV in the form of advertisements?
Product placement may have a positive effect on modern popular culture. Brands can now use this medium to affiliate themselves with a programme and all that the programme stands for. It can use the programme to communicate key brand values and an identity. The brand will also gain new heights of exposure and grasps that audience’s attention in a way that an advert cannot guarantee. For example an avid soap fan will sit down and watch a programme, this programme will have their full attention therefore, it gives the brand a prime opportunity to target the audience when they are fully engaged with the advertising medium. In comparison to a TV advert, where the audience may get up a make a cup of tea or when an advert flies past on bus. Also with the increase of ondemand services with SKy plus and internet streaming, adverts are being cut out of the viewing habits of many consumers, therefore, product placement is a positive step for advertisers as it has provided a new medium in which an advertiser can gain the attention of the audience.
The use of product placement is not only a positive step for advertisers, but broadcasters alike as well as audiences. Advertisers are happy because they get the direct exposure of a brand’s product with a specifically targeted audience. Broadcasters are happy because they are paid for this exposure, which means that the broadcasting industry will generate more revenue. As broadcasters are generating more revenue hopefully, this means that the services and programmes that they are able to offer will improve.
T&T Advertising reported that the ISBA (the voice of British advertisers) stated that the current use of unpaid product placement serves both industries well, channels seek brands to include the programme and brands get the exposure they need without paying for it. They suggest that the new paid system will increase advertising costs for brands and agencies alike.
The future of product placement in the UK...
Well paid product placement has been successful in the US for many years now co-existing with spot advertising happily, but time will tell if product placement in UK market will be an effective form of advertising for brands and advertising agencies alike.
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