Product Placement in the EU – It Seems More Like It Won’t Be

This is a follow up on my post To Be, or Not to Be – That Is the Question from September 26. In that first post I discussed the fact that politicians in the European Parliament are considering to change the media policy of the EU which prohibits product placement. Now, a month later, as November 13th, the day when the European politicians will make their decision, approaches the situation is getting pretty heated.

In fact, there is a real possibility that the amendment, which will bring Europe in line with the U.S., won’t pass since it faces really strong opposition in some of the European countries. Public resistance is particularly strong in Germany. Even though the proposed change did not raise negative public opinion in Britain, product placement will not be permitted in the country if the opposition prevails in the Continent. If the liberalization of the rules is denied a market worth ₤100 million (nearly $190 million) will remain untapped by marketers.

According to Viviane Reding, the European Commissioner responsible for information society and media, “nobody seems to like it [permission of product placement]” For this reason she urges broadcasters to “fight it if you want to keep it [liberalization] as proposed”. Her comments and the overall situation on the Continent have caused British broadcasters to doubt whether the change will be committed as proposed.

On November 13th, broadcasting ministers across the European Union will have to take a lot of important decisions about the future of advertising in all its various forms in the EU. Besides product placement, they will be discussing other revisions of the Television Without Frontiers directive concerning the controversial regulation to the internet video.

On the same day it is also expected that a final opinion will be issued by the European Parliament on the Audio-Visual Media Services directive. Before they can make their decision they should receive the concluding report of the commission that has been appointed to scrutinize the new rules.

I can imagine that advertisers are expecting this date with somewhat mixed feelings. The acceptance of all proposed liberalizing changes will be a huge success for both European and American marketers who are now having difficulties tapping the European market. However, failure to pass the amendments will be, according to Dan Sabbagh from The Times, “another blow for advertiser-funded commercial television, which was hoping that product placement could help to offset softness in traditional advertising.” The author of the article makes the observation, which his U.S. colleagues have long ago made, that it is much harder to avoid advertising when it is embedded into the program content than just switch the channel or rewind the tape (in case you TiVo or another personal video recorder fan) during commercial breaks.

“To pass, or not to pass” that is the question broadcasting ministers throughout the EU are asking themselves. To broadcasters this probably translates as “To win, or not to win” millions if not billions advertising dollars, while to marketers it maybe sounds “To expose, or not to expose” millions of people, helpless to do anything to avoid it, to their advertising messages. How much do you think the voice of the viewer counts when such big money and interests are involved. US, democracy’s bastion, made its decision long ago, let us now watch and see what the EU thinks.