Ofcom unveils product placement branding as Nielsen reveals likely impact

Ofcom has unveiled the product placement logo, which must broadcast at the start and end of shows that have been paid to include products.

The logo, which will also be shown at the end of ad breaks, has been launched ahead of the introduction of product placement on 28 February.

Product placement is banned from BBC programming as well as children’s, news, current affairs, consumer affairs and religious programming. Products that can not be placed include baby milk, medicines and weapons.

Ahead of the changes, Nielsen has released three key insights about product placement coming to the UK.

“Product placement has been an accepted part of TV programming in the US for some time. Consequently, UK viewers are already exposed to ‘imported’ paid placements when watching US shows, like Desperate Housewives, 24, NCIS, CSI and Glee.

We know US viewer attitudes to these shows, but we’ve now also surveyed UK audiences watching the same content.

In the first nine months of 2010, 1,677 unique product placements appeared in US programmes broadcast on Channel 4, Five and Sky 1.  These were ascribed to 453 brands, ranging from automotive, tech & electronics, clothing and credit cards to less prevalent uses of beer, firearms and prescription drugs.

• First, we found that UK viewers are just as accepting of product placements as those in the US. In fact, 26% of Brits who remembered a product placement said it improved their opinion of the brand – closely comparable to the US audience (29%).  Only 1% of UK viewers said it lowered their opinion (2% in the US).

How the opinion of brands is affected by Product Placement
– UK sentiment mirrors the US

• Second, viewers in the UK rarely found placements to be ‘forced or awkward’. Only 3% gave any type of negative feedback (4% in the US), while 56% thought their fit was ‘somewhat natural’ or ‘natural and seamless’ (68% in the US).

• Third, good news for commercial broadcasters concerned about their programme integrity. Only 2% of UK audiences said they had a lesser opinion of a TV show as a result of it including product placements, while 24% thought it actually improved the programme.

It looks promising for the acceptance of paid product placements in the UK, but how should broadcasters and brands best use them? Our US findings indicate that, to be successful, there needs to be a natural synergy between product and programme. In addition, placements in ‘reality’ shows are improving the recall and opinion of brands more than in any other genre, particularly in shows with a ‘social responsibility’ message (eg. weight-loss), which allow placed brands to ‘help’ people. Furthermore, the effectiveness can be amplified when the placement, if allowed, is aired alongside an ad for the same brand.”