Marketing |PR | Advertising

Product Placement Finally Allowed in UK

For years I’ve written about the need to relax the severe rules in the UK regarding advertising and sponsorship.

And finally Ofcom appears to have succumbed.

In the current economic climate, companies such as ITV, Channel 4 and Channel 5 – along with a myriad of smaller commercial channels, have been finding it all but impossible to survive in the economic downturn.

Why?

Because strict Ofcom rules prevent product placement and restrict advertising to a maximum of 12 minutes in an hour.

So while people expect to watch a programme like Coronation Street at a cost of maybe £500,000 per hour production costs, ITV has only 12 minutes to recover the money making each 30 second spot cost an average of £20,000 or more.

And instead of a character walking into the Rovers and ordering a pint of ‘John Smiths’ which could offset some of the costs, the TV makers are only allowed to have them say a pint of ‘Bitter’. Being able to replace the word ‘Bitter’ with ‘John Smiths’  could be worth an extra couple of million pounds a year to the channel. Being able to place a package of ‘Kellogs Cornflakes’ on a breakfast table, instead of an anonymous box, could be worth another million.

Ironically, for years now, Hollywood movies have been using Product placement in their movies left right and center – and it’s perfectly legal to show those movies on UK TV. How many times have you seen Danny DeVito stuffing his face with ‘Dunkin Donuts’ or James Bond drive an Aston Martin or BMW.

But put the same commercial transactions together in the UK and they become illegal. Nuts!

The arguement that product placement will diiminish tv quality is also not viable – we’ll just get used to it. Programme makers know that to overdo the product placement part will only diminish the quality of the story line. As I say, just look at how successfully Hollywood has been doing this for years. If anything, product placement can sometimes enhance a scene by making it possible to see a product at work as it can’t be seen in a regular commercial.

The 12 minute rule is another one that I still think is unfair to UK TV makers.

12 minutes advertising per hour is a European Guideline that’s applicable to all European countries. But no other country enforces it with the stamina of the UK. It’s like parking tickets. In Spain if you overrun by a few minutes, the Parking attendant will usually let you off. In Britain if you overrun by seconds, you get a ticket slapped on your car.

MTV was recently fined by OFCOM for overrunning the 12 minute rule by a minute an hour and were fined – ALL – their profits for doing so. Imagine if a Premier league footballer was treated with that severity, they’d be a riot in the stands!

On top of all of this, ITV is  a company with high standards and is one of the few that has to compete against a superbly well funded non commercial broadcaster in the form of the BBC.

It’s time they we’re given a break to keep doing what they do best – make great TV, and be given a chance to make some money at the same time.

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