Product Placement
Posted by admin on March, 15th 2011
Advertising has taken quite a journey in the last 150 years. Not only has it lived in print, video, online, radio and even subliminal, the UK has finally come into line with the US and on 28 February 2011, media regulator OFCOM updated the broadcasting code and permitted broadcasters to use product placement as a form of advertising in the UK.
ITV led the charge on their This Morning programme, with the Nescafe Dulce Gusto netting the coveted spot as the first product in the UK to benefit from the updated broadcasting code.
A spokesperson from ITV said: “The editorial integrity of our programming remains ITV’s priority and any introduction of product placement will strictly adhere to Ofcom rules.”
Other programmes are also set to follow suit with Come Dine With Me being rumoured to be in talks with a supermarket and EA is also apparently in discussions with Sky Sports for a significant presence in their programming.
With revenues from TV advertising declining, broadcasters are having to find new ways of attracting advertiser’s money. On demand TV services and growing internet use have swamped advertising budgets, leaving television stations seeing the balance of power and more importantly, revenues shift away from them. By allowing advertisers to work with TV stations and introduce product placement, OFCOM have allowed independent channels a lifeline.
As in most industries, the key thing to remember is to ‘innovate or die’. TV will not die as such, but with less money in the budget, smaller channels will inevitably lose out and programming quality will go down the pan. ITV did very well last year, last week announcing £321 million profit in 2010 because of revenue raised from advertising during popular programmes such as the X Factor, Downton Abbey and the World Cup.
Both ITV and Channel 4 are aware that there could be a viewer backlash regarding product placement. However, today’s viewers are not naïve, they know that to keep the same old, tired repeats off the screen then channels need an income but will rightly become irritated when an ad break goes on for longer than the time it takes to make a cuppa and let the dog out.
In the early days, product placement could be seen to keep the long (and loud) ad breaks from getting longer, but the risk is that products will be in full view and more brazenly placed with less focus on editorial content. Whilst as a marketing company we are pleased that companies have another arm to reach consumers, we hope that OFCOM can keep this aspect well-regulated to keep product placement relevant and as unobtrusive as possible.
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