• by David Goetzl , July 23, 2007

Telemundo plans to conclude agreements with seven marketers in which each would use various brand integrations in a telenovela the network will air essentially commercial-free. The Spanish-language net expects to do deals with five marketers as it wraps its upfront, and sell the remaining two packages in the scatter market leading up to the debut of "Idolos de Juventud" next spring.

The gambit--Telemundo forgoing all traditional ads in the short-form novela (40 episodes versus the usual 120) and using only product placement--was announced at the network's May upfront presentation. In reality, each episode will feature one spot at either the very beginning or very end. Telemundo says a single 30-second spot is necessary for the series to get ratings, but includes nearly 60 minutes of continuous programming.

Those pre- or post-spots will only be sold to advertisers that sign up for the brand-integration packages. Telemundo (part of NBC Universal) offers three types of product insertion in its novellas: "passive integration," "active integration" and "storyline integration." All seven advertisers are expected to use all three.

In general, "passive integration" equates to a simple product appearance, such as: a Sprint cell phone sits on a table. "Active integration" refers to a scene where a character interacts with a product, such as dialing the phone or slipping it into a pocket. And "storyline integration" refers to a product being built into a plotline, such as a key character conducting a romance via a Sprint phone. The three forms are progressively more expensive.

One advantage Telemundo has with "Idolos"--which will run on weeknights in the 7 p.m. hour with brand integration in every episode--is that it won't suffer from viewer exodus during ad breaks, enduring any subsequent ratings declines. The series also could be DVR-proof, meaning that viewers won't be able to fast-forward through advertisers' messages.

"It's trying to be responsive to advertisers asking for new and innovative ways to commercialize our programs," said Steve Mandala, who heads sales at Telemundo.

The network will be wary of over-commercialization, he notes, since there's a "consensus in the marketplace that subtlety trumps volume."

Gonzalo Del Fa, an executive with media agency MEC Bravo, said the initiative "can run the risk of being a big commercial" unless executed delicately.

The content of "Idolos" offers a possible template for some of the brand integration. The novela revolves around a producer of a pop-music reality show in Mexico. The similar "American Idol" on Fox is considered an example of effective product integration with Coke, AT&T and Ford.

An investor presentation by NBC Universal last month indicated that Coke, Sprint, JC Penney and McDonald's had signed on to integrate their brands in "Idolos," but Mandala said that is not the case.

Telemundo executives plan to ink deals with all seven marketers participating in "Idolos" by early next year. The company will then ask its writers to produce a compelling series that will also plug the various brands. Telemundo executives said writers are not deterred by the call to build in some plot lines centered on a specific product, nor are the actors. "More and more the creative community, particularly writers, are seeing this as just part of the changing business landscape," Mandala said.

Patricio Wills, head of Telemundo Studios, said the content will live up to the quality, "classic novela" style that "our audience expects."

Some members of the Writers Guild of America, which is currently in contract negotiations with the major studios, have railed against programmers requiring them to integrate products into their work. They want to curtail the practice as part of a new contract. Telemundo's writers are not members of the group, a WGA rep said.

In the investor presentation last month, Telemundo president Don Browne said the network can execute intricate brand integrations effectively (and profitably) because it produces and owns its content. In advance of "Idolos," he referred to the Clorox Co. inserting products into current telenovela "Dame Chocolate" as an example.

"We literally wrote their products right into the novela from the ground up," he said. "We have a domestic revenue from that. But when we syndicate it internationally, we get an international revenue, so we get a double dip. Clorox is thrilled. It's a win-win situation--and you don't go to the bathroom and miss the Clorox commercial."

The sponsorship packages for "Idolos" are expected to include links with the series off-air, including online, mobile and stores.