It has been over three years since the first piece of legislation permitting product placement in the UK was introduced. Restrictions on product placement in on-demand programme services, were relaxed in December 2009. After much debate, the door for product placement in television programmes was finally opened in April 2010. However, since then there has not been a rush of product placement deals. The media industry predicts the year 2013 is when product placement would become an established means of advertising.

1. IBC Annual Advertising & Marketing Law Conference 2012
London, UK, April 2012
Product Placement:
The Present & Future
Richard Graham
Partner, Edwards Wildman
24 April 2012
© 2012 Edwards Wildman Palmer LLP & Edwards Wildman Palmer UK LLP

2. Summary
♦ Introduction
♦ Product Placement versus Prop Placement
♦ The Emerging Commercial Deals
♦ The Issues
♦ Contracting for Product Placement
♦ The Future
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3. Introduction
♦ Product Placement
Back to the Future 2, 1989 Wayne's World, 1992 Cast Away, 2000
Back
This Morning, 2011 Style the Nation, 2011 Coronation Street, 2011
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4. Introduction
♦ The Greatest Product Placement Ever Sold
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5. Introduction
♦ Definition: Commercial References in Television Programming
Audiovisual Media Communications
Services Directive
♦
♦ Editorial
Editorial Act 2003
Independence
Independence
♦
♦ Distinction
Distinction
♦
♦ Transparency
Transparency
♦
♦ Consumer
Consumer
Protection
Protection
♦
♦ Unsuitable
Unsuitable Consumer
European Sponsorship
Sponsorship Protection From
Convention on Unfair Trading
Human Rights Regulations 2008
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6. Introduction
♦ Allowed in UK since 28 February 2011
♦ General
♦ Independent editorial control
♦ Editorial content distinct
♦ Prohibition of surreptitious
advertising
♦ Prohibition of promoted products
♦ No undue prominence
♦ Specific
♦ What programmes?
♦ What products?
♦ Where?
♦ How?
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7. Introduction
Is it within the permitted exception of programmes? No
(i.e. films, sports, series, light entertainment) (Rule 9.6)
Yes
Product
Is it within the exception to the permitted exceptions of Yes Placement
programmes? (i.e. news or children) (Rule 9.7) Prohibited
No
Any product
General Was programme produced under UK jurisdiction? placement
Prohibition (excluding those produced for cinema) must be
on Product Yes edited out or
Placement No obscured/
(Rule 9.6) Is the programme religious, current Yes
affairs or consumer? (Rule 9.12) blurred
No No
•Editorial Independence •No alcohol, HFSS, gambling, infant
milk, medicinal, cigarette products,
•Non Promotional banned products (Rule 9.13)
•No Undue Prominence
•No Cigarettes, Tobacco Is the programme produced or
or Prescription Medicine commissioned by a Ofcom- Yes
regulated broadcaster? (Rule
(Rules 9.8-9.11) 9.14)
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8. Product Placement versus Prop Placement
Product Placement Prop Placement
• Programme • Programme
• Product, service or trade mark • Product, service or trade mark
• Commercial or Non- • No Significant Value / Residual
Commercial Purpose Value
• Consideration Received • No Consideration
• Provider (ex. Costs saved by inclusion)
or Connected Person • Placement Agencies Benefit
• Channels/Studios Benefit

9. The Emerging Commercial Deals
Sky 1 Channel 4
ITV (A League Of (Hollyoaks)
(This Morning) Their Own) - Innovative?
-Dolce Gusto -Kinect Sports - Market-
- £100,000 - Existing Xbox defining?
- 3 Months Sponsorship
UKTV Channel 5
(Find My Past) (Big Brother)
-Product -Product
Placement Placement
- AFP - Other
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10. The Issues
Definitional
Issues
Unfairness
Sophisticated
With
Free Prop
Exportable
Market
Content
Financial Product Consumer
Drivers Placement Drivers
in the UK No Case
US / Aus
Histories or
Different
Research on
Markets
ROI
Consumer
Perception
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11. Contracting for Product Placement
♦ Effective Negotiation
Placement
Obligations
Frequency,
Commission
Prominence,
(based on…)
Reference
Exclusivity /
Retainer
Non-Compete
The Product
Placement
Agreement
Changes in Prohibited
Law Acts
Editorial
Force
Control /
Majeure
Consultation
Control of
Trade Mark
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12. The Future
♦ Virtual Product Placement
♦ Negative Placement? (Hangover II)
♦ Market Acceptance
♦ Associated Strategies
♦ Dual Screen Campaigns / Click-Through Response
♦ Social Media (the Twitter/OFT problem)
♦ Sponsorship / Advertiser Funded Programming
♦ Off-screen Promotional Advertising
♦ Viral Marketing (e.g. YouTube)
♦ International Distribution
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13. Questions
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14. Thank you
Richard Graham
Partner
Edwards Wildman
Dashwood
69 Old Broad Street
London
EC2M 1QS
+44 (0) 20 7556 4418 (Direct)
+44 (0) 20 7583 4055 (Office)
rgraham@edwardswildman.com
www.edwardswildman.com
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