09 Feb 10

Government to legitimise product placement

After a surprisingly brief consultation period, the Secretary of State for Culture, Media and Sport, Ben Bradshaw, has today (February 9th) announced the initiation of legislation which will permit UK television broadcasters to strike product placement deals with advertisers.

Mr Bradshaw heavily caveated his announcement by revealing that certain types of programmes (news/religious/consumer/current affairs) will be excluded from the relaxation of the code and that the legislation will prohibit placement of alcohol, foods high in fat, salt, sugar (HFSS), gambling services, medicine and infant formula.

Furthermore, the Directive requires that audiences are alerted to the presence of product placement in a programme by ‘signalling’ at the beginning and end of relevant programmes, and after advertising breaks, and that the relaxation of the rules is not extended to the BBC.

While Mr Bradshaw’s announcement is to be welcomed, the reality is that TV product placement is only likely to be effective from 2011 as the legislation will require approval by parliament later this year. Following this, it will be the responsibility of Ofcom to permit product placement under its Code regulating the content of TV programmes, and Ofcom will need to run a public consultation on the detailed changes to this Code before these can come into effect.  Only after this has happened, and Ofcom has amended its Code, will it be possible for TV companies to show programmes which they have made or commissioned and which include product placement.

Having submitted a paper supporting the relaxation of the code governing product placement, MediaCom welcome today’s announcement which brings the UK broadcast market into alignment with both the US and EU markets.