Place that product - Paid for product placement on TV is on its way: Wednesday 16th September

Benefits to TV channels
Independent TV channels will benefit from this change with increased revenue and whilst Andy Duncan, chief executive of Channel 4, has questioned the idea, ITV who have campaigned for some time for this change have welcomed the decision. The Department for Culture, Media and Sport have estimated that the change could be worth up to £100m a year and believes that current UK programme-makers are at "a competitive disadvantage compared with the US and other rivals". However, those within the media, including media agencies have estimated that revenues would be far less and in the region of £30m. Only time will tell how much revenue is actually generated.

Commercial implications for brands
Whilst these changes will open up new ways for brands to reach audiences in addition to standard 30 second adverts or through current TV programme sponsorship what are the commercial implications for a business and how will they react to this additional sponsorship method?

• Brand managers will need to keep a close eye to see how the market and in particular key competitors buy in to this type of advertising. If you don't place and your competitors do, what will the impact be?
• If you do place, what will consumers think of the placement of your product? Decisions will need to be made as to which programme the brand should be associated with; ideally one which reflects its values and in a situation which reflects the brand in its best light. Ultimately the placement needs to add value to the brand, the programme and have a positive association with the consumer!
• Your brand will need to maintain its integrity; otherwise it may be seen as unsubtle and unnecessary commercial placement with obvious detrimental effects to the brand.
• Any placement will also need to compliment other parts of the advertising mix rather than replace current activity; for example placing a product in a programme it already sponsors. 
• Have you got the advertising budgets to cover this new type of advertising? If not, will money simply be redirected from other areas of the budget?
• What happens if your product is placed to coincide with a June campaign and the programme is then not launched until September?
• Most importantly what awareness will the product placement generate and how will this impact on sales?

How will you measure your brands placement?
So how will the success of the product placement be accurately measured? It will be vital to know what effect this new style of promotion will have on generating brand awareness and on sales volumes.

Here at The Oxford Research Agency we are able to accurately measure:

• Awareness generated
• Potential impact on sales
• Brand equity impact
• Competitor reaction

We will have to wait and see how and when paid for product placement will be implemented but for expert guidance on monitoring your brands promotional activity contact Chris Sinclair (chris.sinclair@tora.co.uk) or Andrew Tharme (andrew.tharme@tora.co.uk) or call +44 (0)1865 728272 at The Oxford Research Agency.