It started with the letter P, flashed on the screen for 3 seconds on Monday morning. But it wasn’t until an hour and a half later that the new era of British broadcasting began in earnest, ushered in almost unnoticed by a coffee making machine.
On Monday, the ban on product placement on British television was lifted, although it is still subject to stringent regulations.
ITV’s daytime programme This Morning featured a Nescafe coffee making machine on Monday, the appearance of which reportedly set Nescafe back £100,000.
In the United States, product placement makes up around 5 per cent of advertising revenue, but the revenue is expected to be lower in the UK, especially during the first couple of years.
Products currently excluded from advertising will not be allowed to be used as product placement.
The European Union lifted the ban on product placement a couple of years ago.
The regulator Ofcom said that product placement on TV will be allowed in films, including dramas and documentaries, television series including soaps, entertainment shows, and sports programmes.
“But it will be prohibited in all children’s and news programmes and in current affairs, consumer advice and religious programmes made for UK audiences,” Ofcom said in a statement.
Ofcom said that the product placement “must not impair broadcasters’ editorial independence and must always be editorially justified. This means that programmes cannot be created or distorted so that they become vehicles for the purposes of featuring product placement.”
Any programme containing product placement must display the product placement “P” logo for 3 seconds ahead of broadcasting.
The government says that in a survey, 6 out of 10 UK viewers said they would welcome product placement if it meant more free content or cheaper premium television.
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