Also called: surreptitious advertising or brand placement
Product placement is the promotion of products and brands in movies, TV shows, books and other productions without it being obvious to the audience that they are advertising. In fact, product placement is a form of subliminal advertising. In popular Dutch, product placement is sometimes referred to as surreptitious advertising. Advertisers and media companies see it as a form of non-spot advertising.
In product placement or surreptitious advertising, advertisers pay for having a product or brand used, shown on screen or mentioned. These types of commercial references are not accidental; the producer or publisher has an interest in the promotion. The advertiser is also referred to as a sponsor. Covert advertising for a brand is also called brand placement.
Benefits of product placement
Product placement offers several advantages over regular advertising. For example, in television or film, depending on the way of viewing, it is possible to fast forward or skip commercial breaks. Product placement assures an advertiser that his product or brand will be on screen.
Another benefit of surreptitious advertising is that viewers identify with a character, presenters and other personalities. When they use a particular brand's product on screen, that authority can have a positive impact on the brand's image and desirability.
Rules and transparency around product placement
In the Netherlands, surreptitious advertising on television and radio is subject to certain rules. Product placement is not allowed on public broadcasting (NPO). The Dutch Media Authority (Commissariaat voor de Media) monitors this and can impose fines if this prohibition is violated.
Covert advertising is permitted on commercial channels. However, viewers must be informed about the presence of product placement. According to an EU directive, sponsored programs must show a clear message at the beginning and end of a program and after each commercial break.
Most broadcasters use symbols marked with the letter combination 'PP' to inform of the presence of product placement.
