Ofcom confirms product placement rules

Ofcom has confirmed that product placement will be allowed on UK television from the end of February 2011.

The media regulator has published a set of rules to govern commercial references in programming as part of a revised broadcasting code following a consultation with the industry.

Ofcom’s new rules “will enable commercial broadcasters to access new sources of revenue, whilst providing protection for audiences,” the regulator said.

The rules, which include requiring broadcasters to alert viewers when programmes containing product placement are aired by showing an on-screen logo, will come in to force on 28 February.

“We have introduced Code rules to permit product placement in television programming, subject to certain safeguards, by implementing the explicit requirements of the Act. In addition, we have:

• included a rule prohibiting product placement in news programmes;
• included a rule that a product, service or trade mark cannot be product placed if it is prohibited from being advertised on television;
• included a rule requiring that, where product placement must be signalled, this must be done by means of a universal visual logo (which Ofcom will issue to broadcasters during the implementation period before the rules come into force);
• confirmed that we will be issuing a formal request to broadcasters in relation to an audience awareness campaign or message about the universal visual logo. This request will apply to broadcasters who transmit signalled programmes at any time within the first six months that the rules are in force;
• clarified that single dramas fall within the permitted genre of ‘films made for television’ and may therefore contain product placement and must also comply with appropriate film advertising break patterns; and
• clarified that we will apply the product placement rules to paid-for references to products, services and trade marks that are included in a television programme for a non-commercial purpose.”

MirriAd, a product placement company, claims the UK product placement market should be worth at least 5% of the total UK TV advertising market, as it is in the US. This would give it an annual value of £150 million.

Click here to read Ofcom’s full statement.