Broadcasting body permits paid-for product placement

REAL and fictional characters on Irish TV could soon appear a lot more brand-conscious after the Broadcasting Authority of Ireland confirmed yesterday that it will allow paid product placement for the first time on Irish television.

The decision could be worth millions of euro for RTÉ, TV3 and other TV stations in extra advertising income as it generates a potential new stream of revenue for broadcasters.

However, a ban on such placement will remain for some types of programmes, including news, documentaries, children’s programmes and any talk shows where news and current affairs accounts for more than 20% of their content on a regular basis.

But products can be placed in films, sport, dramas and light entertainment programmes.

Sponsors of TV programmes will also be allowed to place their products and services in the programme they sponsor, with the exception of children’s programmes.

Since last year, the BAI had allowed product placement on certain types of programme but prohibited companies until now from paying money to programme makers for such promotion.

But the BAI will allow paid product placement from May 2, as part of a revision of its codes for general and children’s TV programmes.

The Apprentice on TV3 ran foul of the BAI last September when a complaint against the programme was upheld that it contained obvious commercial content without any notification.

Advertisers have repeatedly called on the broadcasting regulator to relax rules governing product placement over recent years, largely as a result of the widespread use of digital video recorders which allow TV viewers to record programmes and fast-forward ad breaks.

It also follows a 2007 decision by the European Parliament to approve new rules governing product placement to keep pace with development in audiovisual technology and advertising.

The BAI said it had introduced the changes to rules on product placement following a public consultation.

“The way in which Irish audiences watch television is changing and it is therefore appropriate that the BAI updates its rules to permit paid product placement,” said BAI chief executive Michael O’Keeffe.

However, he said paid product placement must be strongly regulated to ensure the integrity and independence of programmes and programme makers.

Mr O’Keeffe said product placement would still be prohibited in a range of areas and only be permitted when it complied with a range of rules.

In addition to the current requirement for broadcasters to display a “PP” logo before and during a programme to signal that it contains a product placement, they will also be obliged to list names of companies which have provided products and services to the programme in its closing credits.