Blog: the benefits of product placement

In November last year the European Union approved new rules that relax advertising restrictions and allow product placement in television programmes.

Critics of the change are keen to defend consumers' rights. They are concerned the move shifts too much power to the broadcasters to exploit programming for commercial ends.

However, as well as offering a much-needed modernisation of the current revenue model, surely the relaxed rules could open up a new, creative approach to programme-making, offering consumers a plentiful supply of original programming material? In other words, product placement is, perhaps counter-intuitively, in the consumer's interest.

More programmes, less money

Simply put, current trends mean more and more programmes need to be made for less and less money.

On the one hand, we have an ever increasing array of channels, all of which need to be filled. It is hard to put an exact figure on the number of UK channels (Wikipedia lists 179 but suggests as many as 600, while a 2005 Screen Digest article suggests there are 416).

Even if these don't all offer a full day's scheduling, broadcasters are looking at an estimated half a year's worth of programming to supply every single day. On the other hand, new technologies designed to put the consumer in control of their viewing allow advertising to be skipped with ease.

Since advertisers don't want to pay for consumers to whiz through their 30-second slots on x60 fast forward, brands will need to find ways to link themselves more securely to programming content.

Sponsorship opportunities

We are seeing this already with sponsorship, a now ubiquitous feature of entertainment programming that allows brands to feature in idents (a signpost for the teched-up viewer to stop fast forwarding).

Product placement will enable brands to go one step further and appear in the ‘body' of a programme. This has the potential to offer a prolonged period of engagement with the viewer, which has never been possible to achieve with traditional advertising.

While the promise of a new, workable financial model is great news for the industry, product placement has a bigger, more creative role to play.

It is worth returning to the months of daily programming that need filling. The need is not just for more money, but for more ideas. In order to stay at the top of their game and avoid the temptation of letting re-runs creep into their scheduling, broadcasters need to explore new creative avenues.

The good news for them is they won't necessarily have to go it alone.

Co-creation buzz

We are all by now familiar with “co-creation”, the buzzword of the moment. Typically this makes for a happy consumer-brand relationship.

The consumer gets a creative voice in the process and emerges feeling the product is made with their particular needs and desires in mind. Meanwhile, the brand benefits from a revitalised innovation approach that is highly likely to strengthen the long-term relationship.

The savvy programme-maker should see the potential applicability of these benefits to their own partnerships with advertisers.

Seen like this, product placement can be pushed way beyond the prolonged glance at the Rolex or unnecessary shopping scenes that first thoughts (and numerous blockbuster films) might lead us to expect.

Clash of the titles

As an innovation approach, the clashing of unexpected elements can turn up surprisingly successful and refreshing results. What would a travel show featuring Nokia, a gardening programme with M&S or an Oxo cube game show look like?

OK, there may be many dead-ends, but the point is that brands are more than just one-dimensional products. They have rounded personalities and sets of values that can be exploited and, placed in an unexpected context, have the power to engage with the viewer in a way never imagined possible in a typical 30 second slot.

Sure, sometimes product placement will simply be a quick-win for programme-makers in need of some extra cash, but done well the partnership can offer benefits to everyone:

- TV companies can tap into a new source of revenue

- brands get to stay at the heart of the action in an age where anti-interruption technology is squeezing out traditional advertising

- the consumer will continue to be presented with a huge array of original and creative entertainment.

Surely that's worth the occasional gratuitous logo close-up?

Jo Lowndes is a consultant at Sparkler.

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