Archive for the 'UK Product Placement Ban' Category

LONDON (AdAge.com)–Britain’s biggest commercial channel, ITV, is seeking to divert attention away from its financial troubles with a big-budget branding commercial selling itself as “The Brighter Side.”

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Kinetic, the WPP out-of-home media services specialty unit, this morning announced a restructuring of its global operations, and named New York-based Steve Ridley global COO, effectively shifting the organization’s power base to the U.S. from its roots in Europe. Ridley, who most recently was CEO of Kinetic for the Americas, has been a key player in Kinetic’s growth in the U.S. market. It claims to be he U.S. market leader six offices nationwide, and billings of more than of $1.3 billion, which was helped by its recent win of MillerCoors U.S. out-of-home agency-of-record assignment.

In its announcement, Kinetic acknowledged that the move represents a shift in power from Kinetic’s “traditional U.K. headquarters,” and that it reflects the size and rapid growth of the U.S. out-of-home media marketplace.

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ITV Global Entertainment’s commercial brands director, Gustavo Antonioni has taken voluntary redundancy from the firm.

In a letter sent round to key partners on Friday, Antonioni said that ITV had recently undergone a large scale efficiency review, with his just one of a number of roles across the company which were under consultation.

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Harries said media secretary Andy Burnham “should not ignore the inevitable” and that it was “absurd” that US shows and films playing in the UK were allowed to cash in on product placement while UK producers were not.

“If the money is drying up for the broadcasters where else is the money going to come from? It’s got to come from the commercial sector. The world is changing. I’m sure we all don’t want to embrace that, but we must,” he said.

Harries said he “didn’t want to be told by ITV to put Weetabix in his programme”, but that indie producers should be allowed to broker deals that would enhance a show.

He highlighted Wallander as a prime example of where product placement would have benefited a programme.

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Chris Hackley argues that the Culture Secretary’s recent announcement misses an opportunity to update regulations to the benefit of UK TV companies and viewers and will, in effect mean that, UK commercial and non-commercial TV will be subsidising American TV.

After a three-month consultation prompted by the European Union Audiovisual Media Services Directive, Culture Secretary Andy Burnham has announced that the current Ofcom ban on product placement in UK television will remain unchanged. His decision was described as “perverse” by commercial broadcaster ITV, while the European Commissioner for Media and Information, Viviane Reding, called it an “astonishing” decision that “really does punish UK TV production companies” because it denies them a potentially lucrative revenue stream from charging companies to place their brands in the script or scene of TV shows. ITV is currently suffering from a drastic loss of advertising revenue and its executive chairman Michael Grade is reported to be considering challenging the decision through a judicial review.

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Leading TV writer Adrian Hodges, whose credits include ITV’s Primeval and Survivors for the BBC, has argued product placement should be allowed on UK television as a way to generate income for struggling production companies and commercial broadcasters.

 The writer said introducing it in a “tightly controlled and regulated” way would help address the financial pressures broadcasters are facing in light of a weakening advertising market.

Although admitting he is still “deeply uneasy” about the concept, Hodges said his own attitude towards product placement had changed in the last two years and claimed writers and producers no longer have the “luxury of objecting to it outright”.

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One is the embattled head of Britain’s biggest commercial broadcaster, the other the former director general of the BBC who took on the government and lost.

Yesterday, Michael Grade and Greg Dyke, who have both previously resigned from the BBC under controversial circumstances, locked horns after the ITV executive chairman demanded an apology over an article written by his old rival that made allegations about his professional conduct.

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I don’t understand what the big deal is with allowing product placement on UK television. Do you? Certainly these are tough economic times not just for the US but for the global market as well. In an effort to salvage whatever it can ITV is looking at the government for a little assistance. Doesn’t seem like the government wants to step in and lend a helping hand. Unlike the UK government, the Italian government is moving along with its approval to allow product placement plugs inserted into local tv programs under specific rules provided by the European Union. Now why can’t the UK participate with this? Is it perhaps because they are separate from the European Union, want to have more strict and stringent rules, or do they simply think that they can find a better means to help a struggling market and company? Your guess is as good as mine. If you recall, this debate and topic has been going back and forth for quite some time now and it really doesn’t seem to be getting anywhere.

I really don’t think that ITV is asking the government to approve product placement so it can than proceed to flood viewers with non-stop product placements till they feel the need to turn off the television and proceed to another time consuming activity. They’re just looking to get some extra cash flow so they can continue to operate like a functional business. Yes, there are product placements that annoy me and ones that I’d rather not be bothered with, but from an economic viewpoint, I understand that this is just part of marketing and on an even bigger scale part of capitalism.

Let’s be honest here, the economy is trying to rebound on the whole, the US is in a recession, for how long; changes from day to day and everyone is trying to stay afloat. The UK is more concerned about specific evidence that supports product placement having a positive effect on the economy then trying to help organizations and businesses in its country. Italy on the other hand is trying to salvage what it can, by following the rules regarding product placement as outlined in the EU Audiovisual Media Services Directive Guidelines. Now to clarify, Italy isn’t going to start throwing product placement in the face of their viewers however, they are going to take a more strategic approach, keeping product placement restrictive and targeted. According to Democratic Party Senator Vincenzo Vita “Shows for teens will be submerged by brands, and teens are still a highly susceptible demographic “(Vivarelli, 2009).  I’m ok with that, are you? Teens don’t always see product placements like adults do. After all there are so many products out there geared for teens, that it these placements were successful and integrated right, perhaps that could be a stimulus package for advertisers, marketers, and business everywhere. Just a small thought to consider.

I think that the UK should stop worrying about research and focus more on helping its ailing industry and businesses. Perhaps they should take a more strategic approach like the EU and not  let product placement run wild; which seems like the biggest fear, and just regulate more stringently what can and cannot be integrated into content. Another thing that I agree with that the EU put in place was a time limit to get all participating parties up to par by the same date. This provides a more structured environment with really no room for interpretation.

The UK really needs to open its eyes and take a look around. Like Ferris Bueller said “Life moves pretty fast if you don’t’ stop and look around once in a while, you could miss it”. I can’t say it any better than that. The UK has a tremendous opportunity at this point in time to step in, put regulations in place, help business in trouble, and perhaps even be a hero.

What do you think about this? Should the UK just go ahead and allow product placement to be legal in TV? Write to us at feedback@itvx.com.

By: Gary Trandiak

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ROME — The Italian government is set to allow product placement on local TV programs under new rules greenlit by the European Union.Italy’s Senate on Wednesday began discussions on the controversial subject, but it is certain to pass because it’s backed by the country’s majority bloc headed by prime minister and Mediaset owner Silvio Berlusconi.

The new legislation will permit placing branded items, such as beverages, cell phones and fashions, within scenes on telepics serials and other programs, but excluding children’s shows.

Produce placement was included in the EU Audiovisual Media Services Directive guidelines approved in December 2007.

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LONDON: Andy Burnham, the UK’s culture secretary, has rejected proposals to allow product placement on domestically-produced TV programmes, arguing it would “blur” the boundaries between advertising and editorial content.

Some commercial broadcasters, and particularly ITV, had been hoping to use product placement to partially offset falling advertising revenues.

However, after a three-month consultation on the matter, Burnham argued there was “a lack of evidence of economic benefits, along with very serious concerns about blurring the boundaries between advertising and editorial.”

Alongside protecting the standard of programme-making, Burnham said his priority was to “maintain levels of trust between audiences and broadcasters.”

As such, his “preference is to consider all other avenues before allowing product placement” in an effort to allay the “difficult economic times” that are currently facing broadcasters.

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