ACMA reviewing embedding of brands in TV content

The chairman and CEO of the Australian Communications and Media Authority says existing broadcasting rules are “cumbersome, messy” and “not well understood” and are currently being reviewed including an examination of ’embedded’ advertising on television.

Chris Chapman, CEO of the media watchdog, told Encore that while embedded advertising and product placement is a growing revenue stream for commercial TV networks, the current regulations do not adequately cover it. “We are concerned the current codes and practices don’t reflect sufficient transparency,” he said. “We do recognise that it is an increasingly important element of broadcasters’ finances but the question is whether it is adequately distinguished so that viewers can be sensibly digesting it, processing it and aren’t mislead.”

Chapman’s comments just come days after the ABC’s Media Watch program chastised the Ten Network over a sponsored news broadcast covering the recent Reserve Bank’s interest rate cut. The segment featured a Mortgage Choice spokesman. Ten defended the broadcast arguing that the sponsorship was clearly identifiable and the analyst was announced as a representative of the company.

“There is a view that embedded advertising is going to be increasingly important part of broadcasting revenues going forward,” said Chapman. “The Channel Ten example (cited by Media Watch) is an example of that.”