• Broadcasting & Cable, Tuesday, February 10, 2009 9:18 AM

With advertising and television production budgets being cut, TV producers are seeking to soothe the financial pain, coming around to the idea that branded entertainment and product integration are viable symbiotic solutions. Talk-show hosts are on the leading edge of the trend. "Jay Leno is going to be a fresh new platform to experiment with product integration and ad techniques," says Mike Pilot, president of sales for NBC Universal. "Look for us to be very innovative between the show and the commercials."

The potential problem is the risk of overexposure, with shows becoming overrun with sales pitches. As TV sales executives struggle to maintain prices, ad agencies could ask for product placements as "value-adds" to keep deals in place. That could add up to more on-screen clutter.

But risk or not, growth has been strong. In the fourth quarter of 2008, 745 brands showed up in prime-time programs on broadcast networks-73 more than the year-ago period, per Nielsen. In cable, always a much broader playground for branded-entertainment executives, 839 brands with in-program placement appeared in prime time, a rise of 265 over the same period last year. A media buy is usually included, but it is no longer a requirement for these branded entertainment deals, says Pilot.

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