Culture Secretary Ben Bradshaw last week confirmed that the government will allow product placement on British TV shows for the first time.

As previously reported, the government announced last year that it planned to allow commercial broadcasters to generate new revenues by charging brands to have a subtle presence within TV programmes. Unlike in the US and many other European countries, such paid-for brand exposure has been banned on British television until now.

Broadcasters like ITV hope the relaxation in product placement rules will provide a valuable new revenue stream to help compensate for the fall in traditional TV advertising income. Though some critics reckon that many advertisers will be cautious about embracing placement in case of a public backlash towards brand presence in programmes, while others may simply divert money originally pencilled for traditional ad spots to the new opportunities of in-programme exposure.

Confirming that product placement was being given the green light on British TV, albeit with some very specific restrictions, Bradshaw wrote in a ministerial statement earlier this month that the new system would "provide meaningful commercial benefits to commercial television companies and programme-makers while taking account of the legitimate concerns that have been expressed".

ITV welcomed the new rules, despite the broadcaster's management having a problem with some of the restrictions. A spokesman told reporters: "While we do not necessarily agree with the restrictions placed on certain categories, it is a step in the right direction as it will deliver additional revenue for investment in original content in the UK".