Ad rules shouldn’t apply to product placement, CRTC told in OTA review

Canadian broadcasters used the over-the-air television review to press for a redesign of the rules governing television advertising. But while there was little appetite for increasing the hourly limit on conventional spot advertising, product placement is a whole new ball game. In a bid to create a flexible policy that would provide broadcasters with the financial leeway to maximize their Canadian production spending requirements, the CRTC solicited comments on the current rules governing advertising as part of Public Notice 2006-5. In particular, it asked whether or not the current 12-minutes-per-hour maximum should be restricted to standard advertising "breaks" or "spots". While Corus Entertainment Inc.’s submission urged the commission to maintain the current 12-minutes-per-hour maximum in order to preserve the value of advertising inventory, it takes pains to note that product placement should fall outside that limit. "The regulations should be amended to clarify that the current 12-minute restriction will apply only to traditional commercial messages. Restrictions on product placement are punitive on producers." In addition, Corus pressed for a speedy resolution of the federal government’s review of pharmaceutical advertising restrictions, a move presumably motivated by its ownership of the W Network and the possibilities of direct-to-consumer advertising of drugs aimed at women. Other media firms with OTA interests voiced the same sentiment as Corus. " calls on the CRTC to remove all constraints on media placements other than traditional advertising messages," an English-language submission by Québecor’s VP of regulatory affairs Édouard Trépanier reads. "The regulatory system in effect limits commercials to 12 minutes per hour. This restriction should be lifted. General interest TV broadcasters do not need this limit anymore. The market imposes its own limit." With a review of the pay and specialty programming policy looming some time in 2007, Alliance Atlantis Communications Inc. took the opportunity to reiterate its stance that any changes made to ease the pressures facing the OTA broadcasting system should also be reflected in next year’s review. "Product placement is an excellent example of an area where advertising trends and opportunities are evolving, and where it is critical that both sectors compete on an equal footing," reads the submission by Elizabeth Duffy-MacLean, VP of public and regulatory affairs. "If one were favoured, the other would immediately lose revenue as advertisers sought to take advantage of this growing trend." Canada’s main advertiser group also weighed in with its thoughts. "Consumers have always been in control, but with DVRs they can now command and dominate," the Association of Canadian Advertisers’ VP of policy and research Robert Rheaume writes. "Advertisers have reacted by emphasizing more program-integrated styles of advertising such as sponsorships, product placement and branded entertainment, and de-emphasizing commercials in pods….Given the importance of advertising revenues to the system, we urge the commission to refrain from any attempt to reclassify this non-traditional program-integrated type of advertising as part of the 12-minute per hour limitation." In April, Decima Research surveyed an online panel of more than 1,500 English-speaking Canadians to measure the effectiveness of automotive product placements in popular US dramas (CCR, April 21/06). The survey found that about two-thirds (65%) of those who said they regularly or sometimes watched CSI: Miami could identify General Motors’ Hummer H2 as the vehicle featured in the program, while nearly half (47%) of The Apprentice viewers correctly identified the car in that show as the Pontiac Solstice and more than one-third (37%) of respondents who watched 24 could identify the featured SUV as a Ford. While the Decima survey focused on US-produced shows, at least one Canadian broadcaster airing such shows has reacted by taking matters into their own hands. Earlier this year, CanWest MediaWorks Communications Corp. blocked out a sponsor logo on the roof of a cab in its simulcast of The Apprentice and replaced it with a virtual ad for Casino Rama. CanWest MediaWorks president and CEO Leonard Asper has voiced concerns in the past about the loss of Canadian advertising opportunities when US producers and advertisers embed products in their programming (CCR, June 24/05). Other broadcasters, however, have decided their best option is to get into the game themselves by cutting product placement deals with domestic producers. For instance, CTV Inc. has pursued product placement dollars with its deal with Sears Canada Inc., with retailer’s Wish Book catalogue appeared in a holiday episode of Corner Gas last year (CCR, Nov. 7/05). CTV-owned specialty programmer Discovery Channel has also written product placements from sponsors Mazda and Castrol into its new auto racing reality show, Star Racer. The survey, which was conducted for the April 2006 issue of the Decima Quarterly via the eVox online panel, polled 1,582 people with results being accurate +/- 2.12, 19 times out of 20. For information about purchasing a summary report based on the product placement survey findings, please contact Ryan O’Neill at (613) 230-1984 or roneill@decima.com.

Ad rules shouldn’t apply to product placement, CRTC told in OTA review

Broadcast | October 24, 2006

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