Product Placement to be regulated in Thailand

In Thailand, media authorities will be considering a code of conduct for product placement on television?a move that is forecasted to have minimal impact on the ad industry.

Witthawat Chaipranee, the chairman of the Advertising Association of Thailand, says that majority of TV producers do not benefit from product placements.

?Though some benefit, particularly those involved in prime-time programming, the gain is less than 1 per cent of the total advertising revenue of Bt90 billion per annum,? Chaipranee said during a meeting with the association. ?Even if the government put these hidden ads under control, it would not affect the industry,?

He says that the Consumer Production Board (CPB) will be meeting with related agencies to discuss the issue. The CPB received complaints from academics, saying that the hidden ads were taking unfair advantage of consumers.

Chaipranee said that there has been an increase in the appearance of hidden ads, especially in talk shows, news programs, game shows, and sitcoms. Actors and hosts are shown using or consuming branded products. However, he says that featured products that are not complimented by slogan and other mentions are acceptable. He notes that while product placements are popular, they don?t necessarily guarantee high ratings.

?The hidden ads give a lifeline to these programmes, particularly children’s programmes that have few sponsors,? says Chaipranee. ?Meanwhile, hidden ads are uncommon in prime-time programmes, but are increasing as producers see this as a way to make additional profit. All parties need to brainstorm on this issue and see how they can control these ads.?

On Monday, the Advertising Association will rule out product placements that are not accompanied by comments and mentions on the show. These ads will not be considered hidden ads. The association will also propose that extra time slots be allotted for the advertisements of tie-in products. 

The new rules will be imposed on product tie-ins, TV producers, TV stations, and ad agencies.

Source: TheNation