ITV Product Placement Roadshow

Historical Context and The Market

•US - long history, PP existed before spot advertising• Ability to write products into scripts, e.g.

whole episode of Lost about a Samsonite case that could not be opened

• On screen pp clutter in many shows• Traded as part of wider media deal• Producers often share in revenues

•UK Prop Placement• Controlled by 13 Brand Placement

Agencies• Active since mid 1980s• Handling £7m> £10m of placements pa• Delivering £ 25m> £30m pa of media

inventory

Regulation

• Ofcom consultation period complete and new code was published 20th December 2010

• On air start of Feb 28th 2011 with period of on air marketing across all broadcasters to raise awareness of PP with viewers • On air warning logo requirement

• Editorial justification test to apply. Clear approval process from editorial, commissioning & compliance teams.

• No products can be written into the script (as per US scripted drama)

Regulation

• No PP allowed in –• News and Childrens (whether produced in the UK or acquired from abroad)• Current affairs, consumer advice, religious shows

• PP allowed in – • Films• Series made for TV• Sport• Light Ent

• No PP of the following products – Tobacco, alcohol, HFSS, gambling, baby milk, medicines, any product that can’t be advertised on TV

• ATVOD due to publish their VOD position for PP now Ofcom guidance is out• “TV-like” content likely to include long form catch up but clips excluded

Tracking and Evaluation

Repucom

• Founded in 2003 to create an industry-standard currency to quantify brand exposure in broadcast (speciality in sports sponsorship)

• Appointed as ITV’s partner to measure and value all PP placement deals

• Combination of 2 scores will be used:

Brand Placement Score +

Contextual Integration Score

= Product Placement Score

LocationLocation on Screen

DurationLogo Time on Screen (seconds)

Multiple ExposuresNo. of times the brand appears.

SizeSize of brand exposures on screen (% of total screen size)

Radiuss: Technology

Passive Brand

Exposure

Active Branded Product

Integration + Audio Reference

Passive Unbranded

Product Integration

Audio Reference

only

Passive Branded Product

Integration

Active Branded Product

Integration

The Contextual Integration scoring system is based upon 7 distinct criteria- from a low end passive, unbranded experience to a high end value combining full Brand active integration coupled with an audio reference.

Active Unbranded

Product Integration

Contextual Integration Scores -Value Chain

Making it Happen

Creates emotional

attachments

Creates fuel for wider Marketing activity

Can endorse a Brand’s

attributes and educate

through usage

Can create a “bridge” for promotional activity

Allows for greater contextual intensity of communication

Vector of positive image

Heightens Brand

Awareness

Product Placement DNA(learnings from Around the World)

Proposed Sales Strategy

• ITV open to trade with any Client representative (Media / Brand Placement / PR / Creative Agencies) and / or Client direct

• Two way process • Editorial teams will present Commercial with PP opportunities in advance (pre cleared by Commissioning and Compliance) • Regular briefings from Clients on “Brand Essence and Products” for future consideration

• Gary Knight leading with Katherine Marlow and Rob Hicks• Hiring Product Placement Liaison staff to manage deals across ITVS produced shows (based North and South)

* Talks ongoing with PACT for PP within Indie shows

Placement Plus

Placement Plus

• Next generation “click to buy” tools

• Short form Branded Content clips to widen association

• VPAID and VAST VOD activity linked into PP

• Interactive Companion Display Ads

• Licensing packages

•The above elements are just part of the wider commercial franchising elements that we propose to offer as a wider PP sell.