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Product Placement on Television. Commercial Alert’s Request to the FTC and FCC for Guidelines to Require Disclosure of TV Product Placement Commercial.

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Presentation on theme: "Product Placement on Television. Commercial Alert’s Request to the FTC and FCC for Guidelines to Require Disclosure of TV Product Placement Commercial."— Presentation transcript:

1 Product Placement on Television

2 Commercial Alert’s Request to the FTC and FCC for Guidelines to Require Disclosure of TV Product Placement Commercial Alert’s Request to the FTC and FCC for Guidelines to Require Disclosure of TV Product Placement

3 “…keep the commercial culture within its proper sphere, and prevent it from exploiting children and subverting the higher values of family, community, environmental integrity and democracy.” “…keep the commercial culture within its proper sphere, and prevent it from exploiting children and subverting the higher values of family, community, environmental integrity and democracy.”

4 “Put simply, TV networks and stations are shifting advertising from commercial breaks to programming itself. They are inserting branded products directly into programs, in exchange for substantial fees or other consideration.” “Put simply, TV networks and stations are shifting advertising from commercial breaks to programming itself. They are inserting branded products directly into programs, in exchange for substantial fees or other consideration.”

5 Remote controls and TiVo enable viewers to avoid ads Remote controls and TiVo enable viewers to avoid ads A substantial majority of viewers are A substantial majority of viewers are fed up with advertising generally and on television in particularfed up with advertising generally and on television in particular Looking for ways to avoid adsLooking for ways to avoid ads Advertisers find embedded ads effective because viewers are caught off guard Advertisers find embedded ads effective because viewers are caught off guard

6 Some programs so packed with placements they resemble infomercials Some programs so packed with placements they resemble infomercials But lack disclosure requirements of infomercials But lack disclosure requirements of infomercials Particularly problematic where children are involved Particularly problematic where children are involved Children more vulnerable to this influenceChildren more vulnerable to this influence Are they “program length commercials”?Are they “program length commercials”?

7 Product integration “a presence woven into the plotline— often across multiple episodes— accompanied at the very least by a supporting medial buy and, at best, by an integrated marketing and public relations campaign replete with a sweepstakes overlay and other consumer touchpoints” “a presence woven into the plotline— often across multiple episodes— accompanied at the very least by a supporting medial buy and, at best, by an integrated marketing and public relations campaign replete with a sweepstakes overlay and other consumer touchpoints”

8 Examples CBS: Survivor CBS: Survivor GM, Reebok, TargetGM, Reebok, Target Fox: American Idol Fox: American Idol Ford, Coca ColaFord, Coca Cola ABC: Who Wants to be a Millionaire ABC: Who Wants to be a Millionaire AT&TAT&T

9 CSI Miami CSI Miami Extreme Makeover Home Edition Extreme Makeover Home Edition The Apprentice The Apprentice Oprah Winfrey Oprah Winfrey

10 Product placement is growing Nielsen Media Research and Advertising age track placements Nielsen Media Research and Advertising age track placements Approaching $1 billion in revenueApproaching $1 billion in revenue Survey by Association of National Advertisers indicated 63% took part in “branded entertainment” Survey by Association of National Advertisers indicated 63% took part in “branded entertainment” Networks planning shows that eliminate traditional commercials altogether Networks planning shows that eliminate traditional commercials altogether

11 Product placement works Reece’s Pieces/ET Reece’s Pieces/ET 65%65% RayBan/Risky Business RayBan/Risky Business Tripled in one monthTripled in one month “Successful product placements are more effective than ads at generating recall, promoting brand awareness and ultimately, increasing sales at a fraction of the cost of traditional advertising.” “Successful product placements are more effective than ads at generating recall, promoting brand awareness and ultimately, increasing sales at a fraction of the cost of traditional advertising.”

12 “When somebody is jumping up and down because they have a beer as a reward, and they make it seem like it’s the greatest liquid they ever drank in their lives and they’re real people—that probably is more effective than having some model saying ‘Hey, drink Budweiser.’ It can be very effective.” “When somebody is jumping up and down because they have a beer as a reward, and they make it seem like it’s the greatest liquid they ever drank in their lives and they’re real people—that probably is more effective than having some model saying ‘Hey, drink Budweiser.’ It can be very effective.”

13 Evidence suggests product placement may be implicated in epidemic of marketing- related diseases in children Obesity Obesity Type-2 diabetes Type-2 diabetes Alcoholism Alcoholism Smoking-related health problems Smoking-related health problems gambling gambling

14 “Is it totally coincidental that the products associated with the epidemic of marketing-related diseases are the very ones that the marketing industry has been pushing through stealth ads—junk food, soda pop, beer, alcohol, and gambling?” “Is it totally coincidental that the products associated with the epidemic of marketing-related diseases are the very ones that the marketing industry has been pushing through stealth ads—junk food, soda pop, beer, alcohol, and gambling?”

15 Examples Soda Soda Coke in American Idol and Young AmericansCoke in American Idol and Young Americans Pepsi in Pepsi Smash and The RunnerPepsi in Pepsi Smash and The Runner Fast Food Fast Food McDonald’s in Beg, Borrow and Deal, Nashville Star, Big Brother and BaywatchMcDonald’s in Beg, Borrow and Deal, Nashville Star, Big Brother and Baywatch

16 Beer Beer Anheuser-Busch in Survivor I and IIAnheuser-Busch in Survivor I and II Rolling Rock, Labatt Blue and Dos Equis in The Best Damn Sports Show PeriodRolling Rock, Labatt Blue and Dos Equis in The Best Damn Sports Show Period Tobacco Tobacco Gambling Gambling Casinos in Fear Factor and Las VegasCasinos in Fear Factor and Las Vegas 20% of adolescents have gambling problem 20% of adolescents have gambling problem

17 CA’s request to the FTC “Investigate current TV advertising practices regarding product placement and other embedded ads, and take the steps necessary to restore some honesty and fair dealing to the presentation of these ads, by requiring concurrent disclosure that the ads are, in fact, ads.” “Investigate current TV advertising practices regarding product placement and other embedded ads, and take the steps necessary to restore some honesty and fair dealing to the presentation of these ads, by requiring concurrent disclosure that the ads are, in fact, ads.”

18 CA’s request to the FCC “Product placements should be identified when they occur. This should be in addition to disclosure at the outset of a program. Disclosure should be large enough, and kept on the screen long enough, so that it can be read and understood.” “Product placements should be identified when they occur. This should be in addition to disclosure at the outset of a program. Disclosure should be large enough, and kept on the screen long enough, so that it can be read and understood.”

19 Concurrent disclosure should read ‘Advertisement’ when the product placement is on the TV screen Concurrent disclosure should read ‘Advertisement’ when the product placement is on the TV screen Disclosure at the outset of the program should be in plain English, such as Disclosure at the outset of the program should be in plain English, such as ‘This program contains paid advertising for…’‘This program contains paid advertising for…’

20 Freedom to Advertise Coalition Interrupting television programs with ‘pop up’ disclosures is ‘impractical and border on the ludicrous’ Interrupting television programs with ‘pop up’ disclosures is ‘impractical and border on the ludicrous’ Pose a threat to artistic freedom Pose a threat to artistic freedom Noted that FTC rejected similar proposal in 1992 from Center for the Study of Commercialism regarding placement in movies Noted that FTC rejected similar proposal in 1992 from Center for the Study of Commercialism regarding placement in movies

21 FTC’s response Principal reason for identifying an advertisement is that consumers give more credence to objective claims from third parties than from advertiser itself Principal reason for identifying an advertisement is that consumers give more credence to objective claims from third parties than from advertiser itself Cited case involving infomercial for BluBlocker sunglasses Cited case involving infomercial for BluBlocker sunglasses represented as investigative reportrepresented as investigative report implied reporting objective product dataimplied reporting objective product data

22 CA’s complaint does not suggest product placement results in consumers giving more credence to objective claims about product attributes CA’s complaint does not suggest product placement results in consumers giving more credence to objective claims about product attributes In product placement few objective claims appear to be made about performance or attributes In product placement few objective claims appear to be made about performance or attributes Thus no rationale for requiring disclosure that advertiser paid for placement Thus no rationale for requiring disclosure that advertiser paid for placement


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