Download Product Placement about to Pounce!

Product Placement
about to Pounce!
Ever wondered why the Coke logo on the glasses on the table in front of the judges
on American idol is blurred? In the UK, unlike the USA, product placement is banned;
however, from 28th February 2011 product placement will be allowed in UK TV
programmes, but does this mean that they will no longer be blurred out.
What is product placement I hear you ask and
why is it currently banned? Product placement
is defined by Ofcom as ‘the paid-for placement
of products, services and trade marks in TV
programmes’. The practice was originally banned
in the UK as there were concerns that product
placement would blur the distinction between
advertising and editorial and that standards of
broadcasting needed to be maintained. The
government was worried that the quality of
programmes would deteriorate as placing brands
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in prominent places in TV shows became the
norm. These concerns were pushed aside on
9th February 2010 as the former Labour
government announced that product placement
is to be permitted on UK television from early
in 2011.
Until the ban is lifted, the UK and Denmark are
the only countries in the EU to not allow product
placement (also referred to as stealth marketing
and embedded advertising by marketing
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Product Placement
about to Pounce!
continued
professionals). The US is famous for its active
use of ‘stealth marketing’, from the promotion
of Acuvue contact lenses in Smallville to Yamaha
pianos in Desperate Housewives and
Bloomingdales and Ralph Lauren in Friends,
product placement is part of the media culture.
British film goers are already exposed to excessive
product placement. The ultimate example is the
James Bond franchise: Omega watches, Aston
Martin cars and Sony Ericsson mobile phones
are all featured in the films with Aston Martin
reportedly paying $50 million to have their car
included in the Quantum of Solace.
The new rules will allow for brands to be
featured in films, TV series, entertainment shows
and sports programmes. However, product
placement will not be permitted in children’s
programmes and news programmes. Embedded
advertising will only appear on commercial
channels and not on the BBC.
In lifting the ban on product placement, some
viewers are concerned that much loved ‘fake
brands’ in their favourite soap opera will
disappear. Will the new rules mean the end of
Newton and Ridley on Coronation Street?
Products not to be ‘placed’ under the
new rules:
•
•
•
•
Tobacco
Alcohol
Gambling
Foods or drinks that are high in
fat, salt or sugar
• Medicines and baby milk
weapons or escort agencies.
Ofcom have stated that the use of brands
within programmes must be editorially justified
and must not be featured in an unduly prominent
way. A logo will also be displayed at the beginning
of all programmes that contain product placement
to alert viewers.
The potential impact on broadcasters and
television production companies is very attractive
to the industry. In the US product placement
accounts for roughly 5% of all advertising
revenue or $2.3 billion, that would translate into
£150 million in the UK. It is more likely that in
the initial period, outlay will be a lot less than this,
reaching tens of millions in the first year. This
will mean a well needed injection of cash to the
commercial television broadcasters who have
seen a decline in advertising revenue since the
beginning of the recent recession. Production
companies will be able to use the new source of
income to contribute towards their costs whilst
promising to maintain the integrity of their
editorials.
Whilst viewers are to be subjected to even more
advertising strategies implemented by marketing
professionals attempting to raise brand awareness
and brand loyalty, the new rules haven’t gone far
enough yet to prevent the Coke logo on UK
showings of American idol from being blurred. It
will be interesting to see what the full impact of
the changes will be!
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