product placement report of panel 2 jonathan davis uk film council the responsibilities of content...
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Product Placement
Report of Panel 2Jonathan Davis
UK Film Council
The Responsibilities of Content Providers And Users,
Prague 19 - 20 March 2009
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What is Product Placement?
And Now, Ladies and Gentlemen ...
• Product Placement is an audiovisual commercial communication (Av Com Com):– Designed to promote the goods, services or image
of a natural or legal entity pursuing an economic activity;
– Accompanying or being included in a programme;– In return for payment or for similar consideration or
for self-promotional purposes.
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Tea
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Mattoni Marijuana
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From where does the interest in product placement come?
• Economic crisis - spot advertising revenues declining
• Technological change - a way to stop viewers skipping advertisements
• “The Death of a Business Model” - replacing lost investment in content production or helping the producer to save money
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What is Product Placement worth?
• No figures for European market• According to ACT, in 2008, $7 billion globally,
two thirds in the US• According to ACT, product placement
revenues in the US will grow 18% in 2009 while spot advertising revenues fall
• In the US, hundreds of thousands of product placements on television
• Programmes on Discovery entirely funded by product placement
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Is the Czech Republic the European capital of product placement?
• Around 20 Czech films produced each year
• total production cost around €30 million• Box office around €15 million• Funding from broadcasters investment
via national fund • Product placement revenue around
20% of production budgets.
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Regulating Product Placement
• Before AVMS Directive– Separation of advertising and editorial– Ban on subliminal and surreptitious advertising
• With AVMS– Member states encouraged (by EC, by
commercial broadcasters) to transpose exactly what is in the Directive
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Transposition : three options
• Option 1: No specific national measures (product placement implicitly allowed)
• Option 2: Limited prohibition
• Option 3: Product placement explicitly allowed possibly under stricter rules
Member states must ensure that any restrictions on product placement are proportional.
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Problems for regulatorsProblems for regulators
• How do regulators know when product placement is How do regulators know when product placement is taking place?taking place?
• How should product placement be identified?• Should it also be identified by a list of
advertisers/products?• How long should the screen display the signal or/and the
list of advertisers/products?• Definition of undue prominence?• Definition of significant value?
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Areas to be addressed
• Product placement in videogames, music videos etc.
• Product placement in programmes created for social network sites (soap operas on Beebo)
• People placement• Moral rights
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Virtual product placement
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Conclusions
• Product placement is a good reason for media literacy
• The best defence against bad effects of product placement is a media literate society
• Evidence - for example, of the economic benefits, the effectiveness or the impact on editorial/artsistic integrity of product placement - needs to be built up.