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Standards of regulations for product placement

Advertising & Media

Sandra Merkel

on 5 April 2012

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Transcript of Standards of regulations for product placement

Standard of regulations for PRODUCT PLACEMENT

Advertising & Media
Prof. Dr. Sonntag
05.04.2012 Zuzana Dostalova Matrikel: 32577
Sandra Merkel Matrikel: 33000 Definition Product Placement "Product placement means any form of audiovisual commercial communication consisting of the inclusion of or reference to a product, a service or the trade mark thereof so that it is featured within a programme, in return for payment or for similar consideration." European Commission Product Placement is not the same as sponsorship, because a sponsor reference is not part of the plot.
Short History first appearance in Hollywood movies in the 1920's (USA)
in Germany first product placement (for chocolate) in 1956
Frederik Frey: Werbung im Programm, 2007 At the moment no worldwide regulations in place In 2009 product placement in all media was worth $6.25bn (US. making up half of it) research.live.com Different Forms of Product Placement Where can product placement be found? TV 1. Product Placement in the original sense

make the created world in the movie real for the audience
shows a particular brand ...in visual & verbal form Frederik Frey: Werbung im Programm, 2007 2. Generic Placement
without showing specific brands
eg. fresh fruit, beer
Frederik Frey: Werbung im Programm, 2007 3. Corporate Placement
showing the company's name to boost own Corporate Identity

e.g. FedEx in the film "Cast Away" (2000, starring Tom Hanks) 4. Idea Placement
specific idea is placed into the plot
aimed to influence the opinion of the audience

e.g. different topics discussed in Daily Soaps 5. Image Placement
whole plot designed to promote an image

e.g. the movie Top Gun (1986) 6. Location Placement
special locations like cities, regions, landscapes are focused on

e.g. Dallas, Traumschiff 7. Historic Placement
revival of former brands

e.g. Goobye, Lenin! (2003) 8. Innovation Placement
used to accelerate the introduction of innovative products Books Computer Games Radio Cinema "How I met your mother" (2006) "Twilight" (2008) "The fifth element" (1997) "I, robot" (2004) 9. Additional product placement types:

Music Placement
Message Placement
Service Placement
Polit Placement
Personality Placement
.... Product Placement Regulations in the US.

long tradition in the US. - first product placements in the 1920's in Hollywood movies
regulations in place since 1927 by the
Federal Communications Commission
product placement is not prohibited in broadcast or motion picture industry
audience must be cleary informed, that what they are viewing is paid for
legal and prevalent marketing technique
Exception: CIGARETTES and tabacco products
PMA's 30th Annual Promotion Marketing Conference, 2008 Product Placement Regulations in Canada

regulations made by the Canadian Marketing Association’s Code of Ethics
acceptable within entertainment programing
NO false and misleading advertising allowed
industry specific restrictions (no alcohol and tabacco placements)
NO marketing to children and young teenagers
Product Placement Regulations in Australia

few specific prohibitions and controls
no cigarettes and tabacco products in every form of media
mondaq.com (2007) MCMILLAN BINCH MENDELSOHN, Advertising & Marketing Bulletin, 2006 Product Placement Regulations in Russia
appeared 10 years ago
until March 2010 forbidden by National Law
now legal with some limitations
max. 9 minutes per hour
no alcohol, tabacco products and medicine
"Piter FM" (2006, St. Petersburg & Samsung) memoid.ru (2011) Product Placement Regulations in China

Regulated by the The State Administration of Radio, Film and Television (SARFT)
Relatively new - used since the early 2000s
until now no special regulations
laws & regulations in progress
Radia China International (2011) gala-marketlaw.com Product Placement Regulations in Argentina

at the moment no specific regulations in Place Product Placement Regulations in India

Started in the 2000s
At present no specific regulations
campaignindia.in (2011) Product Placement Regulations in South Africa

not currently being regulated by the Independent Communications Authority of South Africa
teeveetee.blogspot.de (2010) Regulations for product placement in the EU

stricter rules in place than in other parts of the world
before 2007 no EU regulations, fragmentation at the national level
2007: European Parliament approved new rules (AVMS - Audiovisual Media Services Directive)
member countries are free to adopt stricter rules
European Commission Regulations for product placement in the EU

EU Law Directive 2007/65/EC defines the conditions under which product placement is permitted
applies for programs produces after December 2009

European Commission Product Placement regulations in member states

most countries adopted the regulations made by the EU
latest countries were Ireland, Poland and Slovenia which authorised new legislation last year 2011
however, there are some pecularities
prohibited in Iceland, Norway and Turkey
Sweden and Lithuania prohibit alcohol PP in any kind of commercial communication
France prohibits alcohol PP on the TV
Italy is still market leader in PP in Europe

Would be the World Wide Regulation for Product Placement useful? Legislation could be implemented and controlled by the World Court - the International Court of Justice or some Association.
One regulation is necessary because of the globalisation, the commercial communication and advertising for the companies expanding to the another markets in the world. Every country is free to apply their own restrictions based on the basic one. LAW Which programmes can contain product placement?

films, including dramas and documentaries
TV series, including soaps
entertainment shows
sport programmes
programmes where there is no payment but only the provision
European Commission Where can product placements not be used?

news and current affairs
children programmes
religious and consumer advice programmes
European Commission Which products cannot be placed?

cigarettes and tobacco products
medicines available only on prescription
European Commission How can the product can be placed?

by showing special logo at the beginning of the programme
logo has to be repeated after any advertising break during the programme
and at the end of the programme
Programmes also can’t promote placed products or give them too much prominence
European Commission Product Placements regulations in the UK

PP is regulated by independent regulator Ofcom
since February 2011 programmes with product placements have to comply with Ofcom´s rules
applied stricter rules on PP

No product placements for
cigarettes and tobacco products
medicines available only on prescription
gambling products
all other types of medicines
food and drink that is high in fat, salt, or sugar
and baby milk
also products that can’t be advertised (such as guns and other weapons)
European Commission EGTA - Association of Television and Radio Sales Houses
Product Placement Regulations in Switzerland

although not part of the EU, aligned recently with European legislation
only certain types of alcoholic products can be placed, such as:
beers, ciders, wines and champagnes
Thesis 1

"There should be worldwide regulations for product placement."

Thesis 2

"Product Placement has a great influence on our way of thinking." Thank you for your


Frederik Frey: Werbung im Programm, VDM Verlag Dr. Müller, 2007

EGTA: Compendium of regulations, self-regulatory standards and industry codes on conduct of audiovisual advertising of alcoholic beverages across EU:2011, URL: http://www.egta.com/alcohol/documents/alcohol_compendium_v032011_merged.pdf

AVMSD: Product placement, URL: http://ec.europa.eu/avpolicy/reg/tvwf/advertising/product/index_en.htm [04.04.2012]

Richard J. Wegener, Fredrikson & Brian: Product Placement & Government Regulations: FCC vs. FTC, 2008, URL: http://www.fredlaw.com/bios/attorneys/wegenerrichard/RWegener_PMA_2008%20Law%20Conference.pdf [04.04.2012]

CRI: China considers regulating product placement in film, 2011, URL: http://radio86.com/news/china-considers-regulating-product-placement-film [04.04.2012]

Memoid.ru: Продакт-плейсмент в российском кинематографе, 2011, URL: http://www.memoid.ru/node/Prodakt-plejsment_v_rossijskom_kinematografe [04.04.2012]

Jagadeesh Krishnamurthy: All About: TV Product Placement, 2011, URL: http://www.campaignindia.in/Article/250811,all-about-tv-product-placement.aspx [04.04.2012]

McMillan Binch Mendelsohn: Advertising & Marketing Bulletin, 2006, URL: http://www.mcmillan.ca/Files/Product%20Placement_0906.pdf [04.04.2012]

Gala Market Law, URL: http://www.gala-marketlaw.com/membersonly/pdfs/NYLIBSelfRegulation.pdf [04.04.2012]

Thinus Ferreira: New product placement rules for TV coming into effect in Britain from March; does South African TV need the same?, 2010, URL: http://teeveetee.blogspot.de/2010/12/breaking-new-product-placement-rules.html [04.04.2012]

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