Product Placement - part of the solution or part of the problem?

As Ofcom hints that product placement may become more acceptable in the UK we're seeing some talk in the US of tighter regulations. Product placement is well established there - with shows like American Idol including over 400 commercial messages! - and a large proportion of advertisers using it as a marketing tactic.

In a recent speech by one of the heads of the Federal Communications Commission there is a call for more explicit disclosure of product placement

"There is nothing inherently wrong with product placement – so long as it is disclosed as required by law.
Disclosures should also be meaningful. A disclosure that appears on screen for a split second
during the credits in small type that no one could possibly read without pausing their DVR-- and
pulling out a magnifying glass—could not possibly qualify"

Remember the old saying - if you're not part of the solution, you're part of the problem? We think consumers have issues with gratuitous use of product placement and it contributes to the general disillusionment with advertising.

I ran a very early product placement for Kenco Coffee in the early 90s - as an example of what could be done we had the new packaging featured in Coronation Street - Alf Roberts held the jar clearly as he chatted in the corner shop for around 50 seconds. It was very impressive but we couldn't see any real commercial value. At around the same time we proposed the use to Nintendo in a pitch - we'd pay for placement of the latest console in the episodes of Neighbours that would be shown in the run up to Christmas here in the UK. (Product placement is legal in Australia). We didn't win the pitch, so it never happened.

Ten years on we think there is a place for product placement but there are now smarter ways to engage with customers on TV; smart use of iTV will do a lot more for a brand as would exploration of ad funded programming. A conference in the US this week talked about some of the opportunities but makes the point that branded entertainment must resonate with consumers to be effective.