Broadcasters sign product placement code of conduct

ITV, Virgin Media and Discovery have signed a product placement code of conduct put together by TV producers’ trade body Pact.

The joint industry code of conduct has been introduced to address concerns about paid for product placement and to complement the regulatory regime that the European AVMS Directive would require the UK to implement if it allows product placement.

The AVMS Directive permits EU Member States to allow paid for product placement in certain types of programme such as drama, and entertainment but not in news, current affairs, consumer advice or children’s programming.

Key features of the code include:

• Transparency: an easily recognisable visual indicator, such as an industry-wide logo, will be displayed at the beginning and end of a programme and as the programme resumes after a break
• Presence not promotion: the programme producer will decide how any products are incorporated into the content, where it is editorially justified, ensuring no undue prominence
• Editorial independence: product placement opportunities will first be identified by the production team when a script has been finalised. Brands will then be approached by a non-editorial team and commercial terms agreed

Dawn Simpson, Pact’s senior policy executive, said: “This code demonstrates that the industry can, and will, regulate itself to keep standards of UK programming high. It is as important to the industry as to the government that the principles of brand presence, editorial independence and editorial justification are adhered to.”

Rupert Howell, managing director, ITV Brand and Commercial said: “Product placement could be an innovative and important new revenue stream for ad-funded, commercial broadcasters, further enabling investment in original UK content, at a time when advertising revenues are declining.

“We fully support the robust regulatory framework set out in the Directive and a positive move in line with the AVMS Directive would place all UK producers, including ITV, on a level playing field with international competitors, as well as bringing realism to programming. UK audiences are used to product placement in US content already and we would not want to, nor could we afford to lose viewers by implementing product placement in a clumsy or crude manner.

“By working together as an industry to develop this joint code we have demonstrated the responsible approach we would take if product placement is permitted in the UK.”

Pact: www.pact.co.uk ITV: 020 7843 8000 www.itv.com Virgin Media: www.virginmedia.com Discovery: www.discovery.com