Nestlé and ITV Make History in UK

The above video is part of a consumer-awareness campaign introducing changes in the UK 2011 Broadcasting Code from media regulator Ofcom that went into effect today.

Nestlé’s Dolce Gusto coffee makes history as the first brand featured on a UK-produced television program in a paid product placement deal, valued at £100,000 and brokered by WPP media agency Mindshare, on ITV1's This Morning – this morning.

"The editorial integrity of our programming remains ITV's priority and any introduction of product placement will strictly adhere to Ofcom rules,” commented an ITV spokesman. “We are currently talking to clients about a number of product placement opportunities, spanning a range of programmes and channels.” nestle-itv/

According to Mike Stevens, head of research at Vision Critical London, "There's a real lack of awareness that commercial TV will soon be carrying paid-for promotion of brands. It's to be expected that people will feel uncomfortable at first." 

Research from Vision Critical’s survey of 2,000 viewers underscores programmer’s worries and audience ambivalence: “61% of people were unaware that product placement will now be allowed. 

• 54% were "comfortable" with product placement. 
• 32% were "uncomfortable" with product placement. 
• 38% thought TV quality would reduce. 
• 31% thought TV quality would improve. 
• Older viewers were less comfortable with product placement than younger viewers.

Ofcom's new rules require an ad campaign precede product placement - at least by a single ad - and that a logo of the letter P appear on-screen "roughly equivalent to the size of a channel logo" for three seconds at the start and end of a program and following any ad break.

“These details represent the final pieces towards implementing what is an important but contentious landmark in UK television. When the EU Audiovisual Media Services Directive was published permitting some product placement, the then Government's initial reaction was to reject the product placement outright. However, following a change in Government, there was a rethink and last year it was announced that product placement would be permitted albeit with some restrictions.”  

Ever optimistic, execs such as David Charlesworth, head of sponsorship at Channel 4, said, "The overall message from our viewers is that they actively welcome product placement while trusting us to make it work for both them and advertisers."