The UK: no place for product placement?

The UK Government shocked advertisers yesterday by announcing that it will exercise its option under the new Audio-Visual Media Services Directive not to allow product placement to appear on British television. Broadcasters were also hit with ITV's share price falling by 3.15%.

Advertising and marketing law expert Dan Smith says, "The public has access to multiple channels, while the popularity of on-demand media platforms such as 4oD and hard-drive recording continues to soar. Others have turned to alternative sources of entertainment, such as YouTube and computer games. Advertisers have to work harder than ever to reach mass audiences."

It was hoped that the liberalisation of the regulations on product placement – brands paying for their products to appear in television programming – would provide a new source of revenue for broadcasters and a new means for advertisers to increase awareness of their brands. Dan adds, "This hope has been quashed in the short term, though a consultation on the matter is to be launched. The door has not been entirely slammed shut."

Watch out for a detailed analysis of the laws on product placement from Wragge & Co's experts in advertising and marketing law.