Strict restrictions on the use of product placement during television programmes are closer to being liberalised after Ofcom today published proposed new rules.
The regulator said that broadcasters should adopt a new “on-air” symbol — such as the letters “PP” — to alert viewers that a programme contained product placement.
The Labour Government decided this year to allow product placement, prompted by changes in EU legislation which have led to more liberal laws in many European countries.
The Ofcom proposals are likely to be introduced by the end of this year, following a consultation.
The change will be welcomed by commercial broadcasters which have been hit hard by the recession and increased competition for advertising from the internet. The Department for Culture Media and Sport estimated that it will could increase broadcasters’ revenues by £100 million.
Advertisement
British broadcasters are allowed to use products as props, but not in exchange for cash.
The regulator said that product placement would be allowed in films, television series, entertainment shows and sports programmes but banned from all children’s and news programmes and in UK-produced current affairs, consumer affairs and religious programming.
Product placement of tobacco, alcohol, gambling, medicines, baby milk and foods or drinks that are high in fat, salt or sugar is also banned.
The regulator will not allow paid-for storylines. A broadcaster could not, for instance, accept payment from an insurance company to feature a storyline about a house burning down and the homeowner not being insured.
Steve Read, managing director of Brandirector.com and founder of 1stplace, which provides product placement services for clients including Ikea and Volkswagen, urged the regulator to lift the current ban as soon as possible.
Advertisement
“These changes are long overdue. The rest of the world has embraced product placement on TV, benefiting independent producers and broadcasters. It’s about time we got on to it.”
Under separate proposals published today, Ofcom wants to allow radio stations more opportunities to include paid-for commercial references in programming.
It said this would allow, for example, presenters to promote commercial products in their programmes, as long as it is clear to listeners that these promotions have been paid for.