Product Placement Is NOT Payola

  • by November 30, 2007
There is quite a bit of misinformation and misunderstanding surrounding the very term "product placement." Today, the opportunities for advertisers to advance brands in multiple media platforms and formats are not limited to what we all grew up with. But just because there are new forms, does not mean there is something inherently sinister going on.

It goes against logic for any advertiser to hide its message, no matter where or how it appears. The fact that a product appears embedded in noncommercial content should not be cause for alarm, provided there is ample opportunity during the credits for acknowledgment. What we do not want to see is the association and mischaracterization of today's branded content with the unlawful practice of "payola,"which everyone acknowledges is unlawful. Branded content and branded entertainment are components of a dynamic marketplace unto itself, and our members would look forward to helping the Federal Communications Commission understand current practices, terms and trends in the business.

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