
The Incorporated Society of British Advertisers, a trade body that spends most of its time trying to reduce government regulation of the UK advertising sector, has come out against the British government's proposals to allow commercially-based product placement on certain television programmes. Which means that when it comes to the long-held regulations banning the practice in the UK, the ISBA would rather they stay.
UK ministers announced last year plans to allow commercial TV companies to charge brands for the privilege of having their products subtly incorporated into television shows, so that characters in soap operas or sitcoms might be seen to use or eat or drink or buy certain products in return for the makers of said products paying a fee. The proposals are currently being reviewed by the UK government's Department Of Culture, Media & Sport.
The practice is already allowed in many other countries, and commercial broadcasters in the UK - who have seen ad revenues slump in recent years - have been busy pushing for a relaxation of product placement rules for some time. While the government's proposals would limit product placement to certain kinds of TV shows, media regulator OfCom has estimated the proposals could open up £35 million in new income for the ITVs, Channel 4s and Skys of this world.
In theory the relaxed rules would benefit advertisers also, who, in an age of TV-on-demand and Sky-plus-style fast-forward live TV systems, find it increasingly difficult to persuade viewers to sit through their adverts. But the ISBA has come out against the proposals, mainly because British advertisers fear it will result in an expensive price tag being applied to a service that is currently free.
That is to say, a sort of product placement already exists in the UK, whereby brands can get some limited exposure within TV shows by providing goods to programme makers for free, thereby reducing those producer's production costs. Because TV networks cannot charge for such in-programme exposure, product placement in the UK has become a 'contra-deal' arrangement between product maker and product placer.
While this kind of product placement has to be very subtle, the ISBA reckon that product placement under the new rules would also have to be very low key, partly to satisfy the rules themselves, and partly to ensure there is no serious backlash from viewers. Therefore, the ISBA conclude, all that will happen with the new system is that TV companies will be able to start charging high fees for a service advertisers currently enjoy for free.
According to The Guardian, the ISBA says in a submission to the DCMS: "We are very concerned that the combination of overly optimistic revenue expectations and formalisation of this market might lead to attempts, particularly by broadcasters, to close off low-cost prop placement in order to drive advertisers into more expensive paid product placement in programmes under their control".
The submission warns: "Any such resultant increase in the cost to advertisers of paid product placement would result in an increase in their expectation as to the prominence of products thus placed, leading to an increased likelihood of viewer disenfranchisement and, in turn, complaint".
The British Medical Association has also made a submission to the DCMS opposing the proposed relaxed product placement rules. Their viewpoint is no surprise - presumably they don't want the public's favourite TV characters to be seen guzzling brand name crisps and sweets and alcohol. The ISBA's stand point, while understandable, is more interesting, however, given the trade body were pro relaxed product placement rules when they were last considered by the government three years ago.