Only an estimated six deals have been struck since the government relaxed the rules in February
British television has been slow in taking advantage of the relaxation in rules allowing product placement in drama and entertainment programmes, with only an estimated six deals struck so far.
The government relaxed TV product placement rules in February, but six months on the anticipated flood of commercial deals has yet to materialise.
"It has not taken off, there are not the millions of pounds, it hasn't snowballed," said Mark Wood, a partner in product placement agency Krempel Wood, speaking at the MediaGuardian Edinburgh International Television Festival.
He added that the deals that have been struck were largely associated with advertiser-funded programmes, which were "the supertanker" when it came to advertising money going directly into shows.
There is still a debate about how to price product placement deals, and whether the exposure is worth more to brands than the equivalent amount of paid-for traditional TV advertising.
Other things holding back product placement include conservatism on the part of broadcasters worried about compliance procedures, unfamiliarity with the rules, and uncertainty on the side of companies, which are more familiar with supplying props for shows on an unpaid basis.
The tightly drawn Ofcom policed rules also forbid product placement in foods with a high fat, salt and sugar content, which means most snacks and fizzy drinks. It also bars some product placement in cookery shows.
David Charlesworth, the Channel 4 head of sponsorship, funded content and product placement said that for the past nine months he had been in discussions with Hollyoaks producers Lime Pictures about possible deals, and he expected to be able to announce two shortly.
He said that Channel 4 would then move on to discussions about Deal or No Deal, made by Endemol.
"We want to work with more," he added.
Catherine Catton, the UKTV commissioning editor, said she had turned, successfully, to genealogy website findmypast.co.uk for funds to make a new 10-part series for Yesterday, called Find My Past.
"No one knows the parameters, it's a case of suck it and see, it's a new dawn, we are feeling our way as we go along," Catton added.
She said that under the findmypast.co.uk deal the website was given three seconds' exposure three times per programme. Another problem she had found was that "brands don't know how to make television". "It's a massive pitfall. It took so long to sign the contract."
One of the highest-profile product placement deals has been for Channel 4's series Style the Nation broadcast this summer, which featured New Look, in a 12-part catwalk competition.
Matt Pritchard, head of development for independent producer TwoFour, said it was able to persuade Channel 4 to allow all the online fashion collections created by viewers to only use New Look clothes, but he said there had been a "tug of war" over the issue.
Another growing issue are contracts with presenters, actors and talent, who may be linked, or seen to be endorsing products placed in shows.
The product placement deals included in the six estimated to have ben struck so far are Nespresso with This Morning, Tresemme shampoo in Britain's Next Top Model, XBox on Sky Living and Sky1, and Mission Foods in Mexican Food Made Simple on Channel 5.
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Source: http://www.guardian.co.uk/media/2011/aug/27/tv-product-placement
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