Behind the business: Cody Hogarth
- Published: 10 September 2008 15:15
- Author: Chris Curtis
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- Last Updated: 10 September 2008 15:15
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Endemol's New State has been rattling out AFP and product placement deals since it was created earlier this year.
Product placement hit the headlines a few months ago thanks to the unusual stance media secretary Andy Burnham took towards it - he kicked off an Ofcom review on the subject by effectively ruling it out.
The DCMS position may have shifted slightly (the minister has now "yet to be convinced by arguments in its favour", as opposed to categorically rejecting it), but either way Endemol's New State has emerged as a major force in product placement and advertising-funded programming (AFP) since it was launched in May.
Led by Cody Hogarth, previously Endemol head of commercial partnerships, New State has already worked out deals between iTunes and ITV; Nickelodeon and Bratz; British Gas and CITV; and Bebo and a host of brands.
New State's strategy of "solving content problems for advertisers and agencies" effectively means integrating brands into TV or web content in a way that feels natural and keeps both the commissioning and commercial camps happy.
It identified ITV and Apple as suitable blue-chip partners and the deal that created ITV2's iTunes series began over a simple lunch meeting where New State encouraged both to discuss their ambitions.
The deal is a good example of the programming areas where AFP works best, Hogarth says.
"Kids and music shows pitched at 16 to 34 year olds are ideal as they are the groups that mobile phone companies, for example, love to speak to, but broadcasters can't afford to target too much," he says.
"But commissioning editors are always thinking about ratings - they're not just going to order a show because it's free."
Hogarth stays away from the pitching process and makes sure the programming execs
are happy with each format before it is taken to broadcasters. The strategy is designed to help overcome the traditional wariness that broadcasters have towards AFP.
This is often because of concerns over the quality of the content and because the guidelines as set out by Ofcom are considered to have scope for interpretation.
Broadcasters rarely breach the AFP rules, but this is largely due to perhaps over-zealous self-regulation - the "paranoia outweighs the penalty", as Hogarth puts it.
Some might argue Andy Burnham is suffering from a degree of paranoia when it comes to product placement.
The culture secretary clearly feels allowing product placement would blur the boundaries between ads and programming, but Hogarth cites the example of Bebo's The Gap Year, which is exempt from the regulations as it is online content.
Tourism Australia was one of the factual show's sponsors on the understanding that some of the global back-packing action would include a visit to Australia - which, Hogarth argues, is hardly an intrusive brand message.
"It's a big issue. Burnham is talking about sustaining British TV, but I think he's only heard the lobbying from one side so far," Hogarth says.
"Some product placement would be nice, but it's not as though New State's funding model was worked out on that basis [that it will be allowed], and we haven't forecast profits around it."
In other words, any progress is a bonus. Expect Endemol to be at the front of the queue to
try and change Burnham's mind.
