Digital Spy

Search Digital Spy

Media News

ITV, Nestlé run first product placement

By
Holly Willoughby and Phillip Schofield from 'This Morning'

© ITV

ITV has signed up Nestlé's Dolce Gusto coffee brand to today make broadcasting history by becoming the first paid-for product placement on British television.

The £100,000 deal, brokered by the WPP-owned media agency Mindshare, sees Dolce Gusto appear on today's This Morning on ITV1, reports MediaWeek.

The agreement has been made possible by changes to the law introduced by the government last year, and brought into force by Ofcom.

An ITV spokesman said: "Our first paid-for placement of a product will be placed in ITV1's This Morning on Monday, February 28.

"We are currently talking to clients about a number of product placement opportunities, spanning a range of programmes and channels."

Channel 4 and Channel 5 are also thought to be in negotiations with corporate brands to run product placement in their programmes.

Some analysts believe that product placement on TV could be worth upwards of £100m a year to broadcasters, but others have placed that figure at just £25m a year.

Under Ofcom's new guidelines, all commercial broadcasters have to show a new logo for three seconds at the start and end of programmes containing product placement, and after any ad breaks. Broadcasters are allowed to slightly modify the logo - a black and white letter 'P' - to enable its use on either dark or light backgrounds.

Broadcasters were ordered by Ofcom to run on-air campaigns aimed at driving up consumer awareness about the new product placement rules.

However, new research published by thinktank Vision Critical indicates that almost two thirds (61%) of people are unaware that product placement is now permitted on TV.

More than half (52%) of the survey sample of 2,000 viewers said that they were "comfortable" with the prospect of product placement, while 32% were "uncomfortable". Some 38% felt that TV quality would decline due to the new regulations, but 31% felt that it would actually improve.

Mike Stevens, head of research at Vision Critical London, told MediaWeek: "There's a real lack of awareness that commercial TV will soon be carrying paid-for promotion of brands. It's to be expected that people will feel uncomfortable at first.

"What's maybe surprising, is that a third of people think this could actually improve programming quality by creating a new income stream for broadcasters - it suggests viewers appreciate the tradeoffs involved in commercial TV."

You May Like