Pact and ITV unite to form joint industry code on product placement
17/11/2008
Pact and ITV today announced they have signed up to a code of conduct for Product Placement on television, should its introduction be permitted in the UK, following the AVMS Directive consultation. At a time when the sustained investment in UK originated programming is under threat they are making the case for keeping the option of product placement open.
The UK government is currently consulting on the implementation of the AVMS Directive, including consideration of whether to allow the introduction of product placement on television. The AVMS Directive permits EU Member States to allow paid for product placement in certain types of programme such as drama, and entertainment but it is not permitted in news, current affairs, consumer advice or children’s programming.
Trade body for independent producers, Pact, and ITV, as well as a growing list of others such as Virgin and Discovery, support the carefully regulated introduction of Product Placement as a legitimate new revenue stream. At the same time they are mindful of the concerns around paid for product placement and have worked to produce a joint industry code address these concerns and to complement the strict regulatory regime that the AVMS Directive would require the UK to implement if it allows product placement.
The joint code sets out a clear process separating creative and commercial activity to ensure product placement in UK originated content is creatively rather than commercially led. The code will also ensure that the principles of brand presence, editorial independence and editorial justification are always adhered to.
The 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.”
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For further information and a copy of Pact’s submission, contact Clare Naden, Communications Executive
Email: clare@pact.co.uk
Website: www.pact.co.uk
About Pact
Pact is the UK trade association that represents and promotes the commercial interests of independent feature film, television, children's and animation media companies. Pact is the largest representative group of screen-based content producers in the UK and the largest trade association in the film, television and interactive media sectors.
For further information please contact:
Louise Dorey
ITV Commercial Press Office
louise.dorey@itv.com
Product Placement (PP) principles
PP is a potential revenue stream for those making/investing in original content. At a time when the sustained investment in UK originated programming is under threat it would seem sensible to keep the option of product placement open so that it might become part of an overall funding mix for commercial broadcasters. It would also provide an opportunity for broadcasters to innovate in their offering to advertisers.
Ofcom research shows that viewers accept controlled product placement as a means of continuing to fund television and they would prefer it to more advertising.
UK TV audiences already see PP in acquired programming from outside the UK on most mainstream channels. To ban PP in only UK-made content would disadvantage UK producers in competition with overseas producers while audiences would continue to be “exposed” to PP in acquired programming.
The regulatory framework set out in the AVMS Directive, if implemented effectively in the UK, would provide a rigorous set of safeguards for UK viewers. Under the Directive the UK is not permitted to adopt the unregulated approach to PP which prevails in the US.
The incentives of broadcasters that invest in original UK content are aligned with the interests of the audience. If audiences are put off by over-exposure to brands, or if they sensed that the script had been influenced by the advertiser, they will switch off – resulting in less advertising revenue for the broadcaster.