Tuesday, May 22nd, 2012
Due to the global financial crisis, ITV has forecasted a decline of advertising revenues for the final quarter of 2008. With this analysis, ITV is strongly supporting a motion to change the rules of product placement in UK. Since, a more lenient policy will allow more profit to enter advertiser?s doors.
The TV network argues that ?? product placement should be allowed at a time when the sustained investment in UK-originated programming is under threat. It added that not allowing product placement in only British-made content would ?disadvantage UK producers in competition with overseas producers?, particularly because many US shows aired in Britain, such as Desperate Housewives on Channel 4, regularly use product placement? (Telegraph.co.uk).
The other alternative will be advertisers cutting costs, which is not beneficial to networks, brands, and consumers. Already ITV has presented statistics that suggest a strong downturn in online revenue growth.
As of press time, there is still no formal reaction from UK?s Department for Culture Media and Sport?the parliament?s primary arm in handling the ad industry.
