Product placement in the focus

In May 2007, competent ministers of EU member countries accepted the amendment of the 1989 “Television Without Frontiers” directive, to allow product placement. The topics discussed at the Press Club meeting held by TV2 were the problems related to the old directive, the rearrangement of TV advertising market and the effects of product placement. Analogue systems will be replaced by digital ones from 2009 onwards. – The “television without frontiers” directive of 1989 has long become obsolete and does not reflect the changes which have taken place in the industry – said Bertrand Cazes, head of division from EGTA, in his opening presentation. According to him, the recent change has resulted in a relatively balanced EU directive, but he also pointed out that this has only been the first step, and it is now up to competent national authorities, sales houses and channels to apply the directive in practice. The date when the up-dated directive will come into effect in Hungary is not yet known. Zoltán Várdy, sales director of TV2 has pointed out that viewers should not be underestimated and the provision prescribing that product placement should be marked in programs needs to be reviewed, as this would deprive this form of advertising of its essence and purpose. Zsolt Simor, managing director of Mediaedge:CIA added that this assumption is confirmed by results of an earlier survey, which showed that viewers find product placement significantly less disturbing than conventional advertising spots and accept that financing is required to make programs. Zoltán Várdy expects revenues from non-spot advertising to increase as a result of the legalisation of product placement. Gábor Hajnal, marketing director of L’Oreal said that possibilities for using alternative advertising are limited at the moment and they would like to see product placement legalised soon.