Country clamping down on product placement

Russia is clamping down on product placement on TV, which it considers hidden advertising.

A letter sent to local advertising agencies warned that placements would be restricted to two products per series and must be relevant to the plot and subject matter of the drama.

Advertisers must also be named as program sponsors. The placement of medicine, beer or “biologically active compounds” are banned.

The changes come after Russia’s federal anti-monopoly agency drew up guidelines on product placement, a representative for commercial broadcaster CTC Media told business paper Vedomosti.

CTC plans to raise advertising prices to compensate for the cut in product placement.

Spending on product placement is estimated at $25 million to $30 million a year, a small part of the $4 billion to $5 billion TV advertising annually spend in Russia.

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