Today saw the introduction of the relaxation of product placement regulations by Ofcom in the UK. Specialist agency MediaCom review the ramifications of what it could mean for your brand.

There are three potential benefits of product placement for your brand:

1) If you sponsor – or are considering sponsoring – a TV show, the new guidelines enable your products to appear in the show’s content (without undue prominence)

2) If you’re considering advertising funded programming, your products can now appear (without undue prominence) in the show’s content too

3) If you don’t currently spend on television advertising, product placement offers a relatively low-cost means of gaining TV presence in shows.

Recent Neilsen research – featured by ThinkBox – says that:

* Some 28% of UK consumers’ opinions of brands improve after seeing a product placed in a US imported show

* Spots/sponsorships running with product placements doubled both brand awareness and purchase intent

Interestingly, almost two thirds of UK consumers surveyed say product placement in US imports is ‘natural and seamless’. So, from a consumer’s perspective, American broadcasters seem to be getting it right and initial conversations suggest that the UK broadcasters fraternity are adopting a similar ‘light touch’ approach to the initial opportunities.

What is allowed under the new Ofcom guidelines on product placement?

* Paid-for product placement is allowed in films (including dramas and documentaries), TV series (including soaps), entertainment shows and sports programmes.

What is now allowed?

* Product placement is prohibited in all children’s and news programming and in British-produced current affairs, consumer affairs and religious programming.

* The product placement of tobacco, alcohol, gambling, foods or drinks that are high in fat,/salt/sugar, medicines and baby milk is banned.

* Ofcom has also prohibited the paid-for placement of products and services that can’t be advertised on TV, such as weapons.

* Product placement is banned from any BBC licence fee-funded services

* Under the rules, product placement must not impair broadcasters’ editorial independence and must be editorially justified. They state that programmes cannot be created or distorted so that they become vehicles for product placement.

For more information see MediaCom Scotland's Guide to Product Placement document.