Eventually, both the FTC and FCC–and Congress–will need to address this (as will the EU, etc). As “brand integration” increasingly becomes a key business model for online video publishing, more than disclosure should be required. Here’s an excerpt from TV Week:
“Some market research firms forecasting the size of the online video ad economy aren’t counting money spent on brand integration and product placements…
That suggests the size of the Web video economy is being underestimated by the amount of ad dollars flowing into high-profile Web shows such as NBC-backed “Gemini Division,†EQAL-owned “LG15: The Resistance†and Revision3’s “Diggnation.â€
That’s a problem because they generate most of their ad revenue from brand integration and host shoutouts, as do many Web studios including Next New Networks, Revision3, ManiaTV and For Your Imagination.
“The vast majority of revenue we derive for our shows are from brand integration,†said Greg Goodfried, one of the executive producers of “LonelyGirl15†and its spinoffs, which have inked deals with MSN, Disney, Paramount and Procter & Gamble…“Brand integration is one of the biggest segments of the online video ad market, maybe bigger than pre-rolls,†said Raj Amin, CEO of HealthiNation, the online video health information network…There are no current estimates on the size of product placement deals in Web video. But Web TV networks such as Revision3 and For Your Imagination said they charge $60 to $80 on a cost-per-thousand basis for such buys.”
source: “Problems Emerge Measuring Web Video Ads: Product Placements Left Out of Estimates.” Daisy Whitney. TV Week. August 31, 2008.
