Ofcom, which regulates UK communications, recently relaxed restrictions on product placement during TV programmes. Now that the new rules have taken effect, Nescafe is the first to pay for product placement, during This Morning. The three-month deal reportedly cost Nescafe 100,000 pounds. Viewers will know that the programme has product placement because the P symbol will alert them.
Prior to the first placement, a survey suggested that consumers are concerned about this change. Yet 13% of those surveyed said they would be more likely to buy something that has appeared in a programme via product placement.
Still, some observers are wary of the marriage of programme content and product message. "Editorial content and commercial messages need to be completely and transparently separate," says media commentator Steve Hewlett. "Product placement blurs that line because it puts a commercial product right into the middle of the programme."
Will product placement be effective for the marketers who use it? Will consumers accept these placements or click to another channel to avoid them?