Product Placement – Coming To A Screen Near You!

From 28th February 2011, certain categories of programme that are made for UK audiences will be able to contain product placement – this is when a company pays a TV channel or programme maker to include its brands or products in a programme.

The key driver of the introduction of product placement in the UK is the harmonisation of broadcasting regulation across Europe. In addition, there is a feeling that a level playing field should be adopted – given that we’re already seeing product placement across a number of imported shows – without necessarily being aware of it.

So how will it work? Product placement should be seen as a unique opportunity to advertisers - it is most likely to generate effectiveness when used alongside spot advertising or sponsorship by incrementally influencing brand affinity. It shouldn’t be seen as a replacement to spot advertising but rather as an incremental revenue for broadcasters - this has been backed up by Nielsen who found that when spot advertising is paired with product placement it generates double the recall and double the purchase intent.

As with most new initiatives, there are rules associated with the use of product placement, largely in place to protect the quality of programming. Products will not be placed in news or children’s programmes, as well as religious, current affairs and consumer advice programmes. There must also be “editorial relevance” for the product – meaning that it should have a natural fit within the programme and should not be given too much prominence.

UK viewers are being kept in the loop of this development – a special “P” logo will be shown for 3 seconds at the beginning of the programme and during the ad breaks within the programme that contains product placement. ITV have also created a TV spot which will air across the leading broadcasters’ channels as an audience awareness campaign.

There are still a number of question marks surrounding the use of product placement –in particular associated with its effectiveness, measurement and value.

One thing’s for certain though - it’s an exciting opportunity and it means that broadcasters can continue to invest incremental income into quality content, which can only be a good thing for advertisers.

Helen Guard
Senior TV Planner Buyer