1. Seminar Warsaw 8. December 2005 Product placement versus surreptitious advertising

2. Product placement versus surreptitious advertising Do we need new rules for product placement ? Do we need new rules for product placement ? Will product placement enhance European productions ? Will product placement enhance European productions ? Advantages and disadvantages of product placement Advantages and disadvantages of product placement

3. Product placement versus surreptitious advertising Do we need new rules for product placement ? Do we need new rules for product placement ? What is product placement and what is surreptitious advertising? What is product placement and what is surreptitious advertising? – Surreptitious advertising prohibited as defined in Art. 10.3 TWF as defined in Art. 10.3 TWF

4. Product placement versus surreptitious advertising –Legal Product placement defined as representing products, trade names in words or pictures is defined and allowed in the interpretative communication, if 1.the reference to the product is warranted on the editorial grounds of the programme, 2.there is no undue prominence of the good, i.e. it does not serve advertising and 3.the representation is not done in return for payment

5. Product placement versus surreptitious advertising Some member states have a stricter interpretation than others Some member states have a stricter interpretation than others Conclusion: For a common understanding it is useful to implement the criteria of legal product placement in the directive Conclusion: For a common understanding it is useful to implement the criteria of legal product placement in the directive

6. Product placement versus surreptitious advertising Will product placement enhance European productions ? Will product placement enhance European productions ? Only under this condition should we go beyond this legal product placement Only under this condition should we go beyond this legal product placement – USA: no increase in advertising budgets or productions budgets or productions

7. Product placement versus surreptitious advertising Advantages and disadvantages of product placement Advantages and disadvantages of product placement  Advantages - Level playing field with American - Level playing field with American productions, productions, - Cannot be avoided by the viewer, - Cannot be avoided by the viewer,

8. Product placement versus surreptitious advertising - Additional source of income for the - Additional source of income for the producer, producer, - Transparency for the viewer - Transparency for the viewer

9. Product placement versus surreptitious advertising  Disadvantages - Influence on the editorial content, - Influence on the editorial content, - Misleading of the viewers, - Misleading of the viewers, - Loss of credibility, - Loss of credibility, - Endangers independence of - Endangers independence of press and media, press and media, - Consumer cannot avoid it - Consumer cannot avoid it

10. Product placement versus surreptitious advertising Balance of interests Balance of interests – Authenticity and objectivity of editorial content are a guiding editorial content are a guiding principle, principle, – Credibility of media, – Influence on newspapers, – Consumer protection

11. Product placement versus surreptitious advertising „transparency is needed, because product placement is a reality“ „transparency is needed, because product placement is a reality“ – Violation of a standard is no argument for abolition of this argument for abolition of this standard, standard, – Mainly already legal product placement placement

12. Product placement versus surreptitious advertising Against: unsure possibilities of earning money with product placement  Conclusion: Disadvantages outbalance advantages by far!

13. Product placement versus surreptitious advertising Product placement is not a main source of income, Product placement is not a main source of income, Regular advertisement far more important, Regular advertisement far more important, We need more flexibility regarding insertion rules and quantitative restrictions We need more flexibility regarding insertion rules and quantitative restrictions

14. Product placement versus surreptitious advertising Using American productions is comparing apples to oranges: Using American productions is comparing apples to oranges: – They don‘t have quantitative restrictions in the USA restrictions in the USA

15. Product placement versus surreptitious advertising Conclusion Conclusion Allowing product placement beyond undue prominence and not counting it as advertisement looks like a request to invest into this highly debatable form of financing programmes.

16. Product placement versus surreptitious advertising „It is dishonest advertising, it implants its messages in our brains when we are paying less attention. It‘s deceptive, many people don‘t realize ads are ads“.