With companies reducing their marketing budgets; combine that with the growth of PVRs and use of Sky+ that allow viewers to fast forward through the adverts, commerical television has had it tough with advertising revenues.
BBC reports that product placement, which is allowed in the USA and was banned in the UK, will now be legal in commercial UK television programmes.
Product placement is to be allowed on British TV shows, in a move due to be announced next week.
Independent broadcasters will be allowed to take payments for displaying commercial products during shows.
The change is intended to bring in extra funds for commercial broadcasters. Experts believe it could raise up to £100m a year.
This though won’t impact on the BBC who would still be banned,
There are currently strict rules against product placement and this ban would remain in place on BBC shows.
Of course advertisers and broadcasters may want to take note of many complaints about excessive product placement in US television, shows and many films.
Quantum of Solace recevied many complaints about its product placement as it had a lot of placements, however it can be a big earner with a reputed £50million coming from product placement in the film.
At the end of the day, we already see a lot of television with product placement (think of any sport broadcast) and will this make a big difference to the viewer? Probably not. Will it raise revenues for the TV companies? Probably yes.