The Broadcasting Authority recently endorsed a proposal, which is expected to receive final approval later this month, and will lead to a relaxation of rules on sponsorship. While the proposal will not cover programmes such as talk shows, it will allow for greater flexibility for TV licensees to generate advertising revenue. There will also be no limit on how long products can be shown during drama programming.
Hong Kong's free-to-air stations Asia Television Limited (ATV) and Television Broadcasts Limited (TVB) welcomed the move.
Julie Ng, Euro RSCG managing director, said the relaxation of rules would give advertisers greater flexibility. "It can only be a positive thing for both (clients and agencies) because this will be another channel to promote brands. Looks at the Tom Hanks movie which featured FedEx. These brands can be implemented into real life situations."
The restriction on programme sponsorship were drawn up by the Broadcasting Authority in 1992.
According to the Broadcasting Authority: "When the domestic free television programme service licences of ATV and TVB were renewed in November 2002 for 12 years, the Government indicated that more flexibility would be provided to the licenses so that they could operate in a more conducive business environment."
Conrad Chiu, CEO of Market Catalyst, said: "Hong Kong is behind others (in product placement) because it is comparatively conservative. You can see that in the fact that there is still no comparative marketing allowed here and you don't see competing products in the same time slots. It has a number of traditional standards in place since the 70s which are slowly changing. In Western markets, there is the view that the consumer has the knowledge and will make his own judgement. That confidence is not seen here."