Open Access Research Article
PRODUCT PLACEMENT IN WEB SERIES: A SOCIO-LEGAL ANALYSIS OF EMERGING TRENDS AND REGULATORY NEEDS
Published Paper
Article Details
PRODUCT PLACEMENT IN WEB SERIES: A SOCIO-LEGAL ANALYSIS
OF EMERGING TRENDS AND REGULATORY NEEDS
AUTHORED BY - AAKARSH SETHI
Student
Semester VI, Third Year, BA LLB
(Hons.), Institute of Law, Nirma University
Abstract of the Article:
One of the most lucrative forms of advertising,
product placement has undergone significant transformation in the digital age.
With the increasing consumption of web series on OTT platforms, advertisers
have adopted innovative strategies to reach target audiences. This paper delves
into the concept of product placement in the Indian web series, analyzing its
socio-legal implications and comparing existing regulations across countries.
Through a detailed study of 10 popular Indian web series, this research
highlights patterns, gaps, and the need for a robust regulatory framework to
safeguard consumer interests. The study concludes with recommendations for a
balanced approach to product placement in the Indian context.
Keywords:
Product Placement, Web Series, OTT Platforms, Advertising Regulations, Consumer Protection
Product Placement, Web Series, OTT Platforms, Advertising Regulations, Consumer Protection
EXECUTIVE SUMMARY
One of the
most lucrative forms of advertising, product placement, has seen ongoing
transformation in the entertainment business. There has been a noticeable shift from product
placements in movies to web series because
of the rise in tech-savvy
consumers.
Although a sizable amount of entertainment in India is now consumed
through Web series, movie product placement has not decreased. Product placement
tactics have improved in the age of the digital Renaissance. The concept of
Product Placement has evolved over time as popular video streaming services
like YouTube, TVF, and Netflix have grown in popularity.
Global product placement spending surged 12.1% to 32.98 billion U.S.
dollars.[1].
Streaming channels like TVF in these 5 years have turned out to be the biggest
gainers and they have seemed to find the perfect mixture. More than 90% of
their revenue comes from brands; “Brands don’t just buy media space on our
platform; we integrate brand stories
with content,” said Jikku Abraham,
former GM and partner, TVF. “We integrate brand stories with content
which is a premium ad unit for us. Other solutions include product placement,
creating characters for brands, integrated logo units, pre-roll ads, etc.”[2]
With this advent of
digitalization, there has also been an
increasing research gap in this domain. Through this research we plan to delve
into the domain of product placement in web series
in the Indian context, existing
set of guidelines, laws regulations and propose a set of guidelines
from an analysis and comparison with the existing guidelines and rules in other
countries as well in different domains of advertising regulated by the
Government of India.
INTRODUCTION
The origins of product placement can be seen in the early years of radio
and television when companies would fund entire programs or episodes in
exchange for spoken mentions of their products or visual representations of
them. However, this early method of product placement was frequently clumsy and
overt, with little concern for the truth
of the narrative or the viewing experience.
The practice of product placement has changed along with the media and
audiences. Because advertisers frequently collaborate closely with content
producers to make sure their
products are relevant
and fit for the characters or scene, product placement has grown more
discreet.
Product placement has evolved along with digital media, becoming more
interactive and quantifiable as businesses use data and analytics to monitor the effectiveness of their placements and
modify their strategy as necessary.
Creating one's content, such as a short film or web series, to showcase one's
goods or services
is known as "branded content," and it has become more popular in recent years.
This strategy gives advertisers greater creative control over the placement and
can help them reach and interact with their target audience more successfully.
In addition, a lot of streaming services, including Netflix, Amazon
Prime, and Hulu, are now using product
placement to monetize
their original programming.
Briefly put, product
placement has evolved
from intrusive and overbearing
advertising to subtle and inventive forms intended to improve the viewing experience.
NEED FOR RESEARCH
Marketing businesses are struggling to find the most cost-effective
medium to maximize their outcomes due to significant changes in promotional
strategies over the past several years. One important finding is that the
internet is the primary way through which entertainment is consumed. Mobile
content has caught up to millennials. Product placements in web series have
been launched by marketing companies to reach this customer group. There is,
however, a dearth of research
in this field.
Research is fairly
young, particularly in the
setting of India.
Research is still
extremely young, particularly in the Indian
context. This paper attempts
to provide an insight on this ever-growing market. Product placement has become
a significant method for marketers to reach their
target audience in more "subtle" ways in the
modern world when viewers can ignore advertising and demonstrate ad blindness.
It is essential to delve into the complexities involved as well as come up with
a set of guidelines and regulations for the same.
LITERATURE REVIEW
The concept of product placement
has undergone significant evolution over time, shifting from a simple
promotional strategy to a sophisticated form of advertising embedded within
media content. This literature review explores the academic and legal
perspectives on product placement, focusing on its emergence, effectiveness,
ethical considerations, and the regulatory landscape, with a specific emphasis
on web series and digital platforms.
1. Definition and Historical Context
Product placement is
broadly defined as any audio-visual commercial communication that integrates
products, services, or trademarks into media content in exchange for monetary
or similar consideration.[3]. Historically, product placement
can be traced back to early radio and television programs where companies
funded episodes in return for brand mentions. Over time, these placements have
transitioned from overt promotions to more subtle integrations, aligning with
evolving consumer preferences.[4].
In the digital era,
platforms such as YouTube, Netflix, and Amazon Prime have transformed product
placement into a critical revenue stream. According to Kenton (2018),
placements in movies and web series are now designed to enhance narrative
realism, making them less intrusive yet more effective.
2. Effectiveness of Product Placement
Research highlights the
effectiveness of product placement in influencing consumer behavior and brand
recall[5]. Avery (2000)[6] suggests that viewers are less
likely to "zap" or skip embedded brand messages compared to
traditional advertisements. Nebenzahl (1993)[7] emphasizes that placements,
particularly in globally syndicated shows, have a long-lasting impact due to
their extended shelf life and reach.
Moreover, Grohs and
Wagner (2011)[8] Argue that product placement
enhances realism, aids character development, and fosters a sense of
familiarity for consumers. However, these benefits often come at the expense of
transparency, as viewers, especially children, may struggle to recognize the
commercial intent behind such integrations.
3. Ethical Considerations
While product placement
offers numerous advantages, it raises ethical concerns, particularly regarding
consumer manipulation and the lack of transparency. Hart (2018)[9] Critiques "stealth
marketing," where undisclosed product placements blur the lines between
content and advertisement, undermining the public's right to know when they are
being targeted with promotional messages. This is especially problematic for
vulnerable demographics such as children, who may be unable to distinguish
between entertainment and marketing content.[10].
Arguments have been made
that undisclosed placements violate the conventional model of advertising as a
vehicle for conveying truthful information to rational consumers. The ethical
debate extends to the appropriateness of certain products, such as tobacco or
junk food, being promoted through placements.[11].
4. Regulatory Landscape
The regulation of
product placement varies significantly across jurisdictions. In the United
States, the Federal Communications Commission (FCC) mandates disclosure of paid
placements for traditional broadcast media but does not extend these rules to
web series or OTT platforms. Conversely, the European Union’s Audiovisual Media
Services Directive (2018)[12] requires clear and conspicuous
disclosure of embedded advertisements, banning placements in children's
programs and news content.
Countries such as France
have stringent advertising rules, particularly for content targeting children,
while Canada’s self-regulatory approach focuses on industry-specific
prohibitions (e.g., alcohol and tobacco). In India, product placement remains
largely unregulated, despite the growing dominance of web series as a medium
for entertainment. This regulatory gap underscores the need for explicit laws
to govern product placement practices, particularly on digital platforms.
5. Relevance to Web Series
Web series, defined as
episodic content primarily distributed online, have become a popular platform
for product placement due to their ability to reach niche audiences. According
to a study by TVF, over 90% of their revenue comes from brand collaborations,
including placements and integrated storytelling.[13]. The unique nature of web
series—offering on-demand and binge-watching capabilities—has made them an
attractive medium for advertisers seeking to engage tech-savvy consumers.
Despite their
advantages, web series pose distinct challenges for regulating product
placement. The absence of mandatory disclosure guidelines and the reliance on
implicit placements create a risk of consumer exploitation. As Hart (2018)[14] notes, the shift towards
non-informational advertising complicates efforts to distinguish between
promotional and editorial content.
6. Identified Research Gaps
Existing literature has
extensively explored the effectiveness and ethical dimensions of product
placement but has largely overlooked its implications in the context of Indian
web series. While studies from Europe and North America provide valuable
insights, their findings may not fully apply to India’s diverse cultural and
regulatory landscape. Additionally, there is limited research on how product
placement influences consumer behavior in regional languages and among rural
audiences, who are increasingly consuming content on digital platforms.
7. Conclusion
The literature
demonstrates that product placement is a powerful yet controversial advertising
strategy. Its evolution reflects broader shifts in media consumption,
particularly the rise of digital platforms. However, the lack of comprehensive
regulation, especially in India, highlights the need for further research and
legal intervention to balance commercial interests with consumer protection. By
addressing these gaps, future studies can contribute to developing a more
transparent and ethical framework for product placement in web series
RESEARCH METHODOLOGY
A quantitative and qualitative study was carried out to investigate
product placement in web series to reach these objectives. Finding out how the
advertisers used embedded (implicit) or explicit advertising strategies was the
goal of the study. The researcher employed the content analysis method to
address the research issues. To evaluate product
placement, it is required
to categorize its components. To identify and provide a baseline for comparison
between the practice of product placement across different platforms, a range
of web series that were available for streaming on several platforms (YouTube,
Netflix, Amazon Prime, Zee5, etc.) were examined. And based on the result of
the series a proposed guidelines were suggested.
Sample
Around 10 web series were selected, based on the number of views, their
IMDb ratings, availability, and popularity among the Indian Youth.
|
Web series
|
Date of airing
|
IMDb ratings
|
|
TVF Pitchers
|
2015
|
9.1/10
|
|
Permanent Roommates
|
2016
|
8.6/10
|
|
Little Things
|
2016
|
8.2/10
|
|
TVF Tripling
|
2016
|
8.5/10
|
|
TVF Bachelors
|
2017
|
8.2/10
|
|
Roomies
|
2019
|
7.8/10
|
|
Kota Factory
|
2019
|
9.1/10
|
|
TVF Aspirants
|
2021
|
9.2/10
|
|
Sixer
|
2022
|
8.7/10
|
While undertaking the research the following questions
were `looked into the following questions
1)
DURATION OF BRAND VISIBILITY NAME-
With the aid of a stopwatch, the length of the brand's on-screen
appearance was recorded.
It takes between
1.5 and 3 seconds for viewers
to recognize the brand onscreen. If a product is merely seen on screen, not
utilized, or mentioned by a character, information about how long it will
appear is more crucial.
2)
INTEGRATION IN WEB SERIES-
|
Type
|
Meaning
|
|
Enabler
|
Items that are
important for a story's coherence and that allow the story to move on.
|
|
High Plot
|
Brand placement plays a major role in the storyline.
|
|
Low Plot
|
Background placements.
|
|
Background
|
Product, which is shown with one of the main characters, but the
character, is not using it.
|
3)
TYPE
OF PRODUCT PLACEMENT-
|
IMPLICIT
|
The brand
or the product may be seen in the background or set design
without being formally introduced or spoken about
|
|
INTEGRATED
|
The product is spoken about formally in the show.
It may be a
crucial element of the script
|
|
NON-INTEGRATED
|
The product
is presented at the right moment but
not necessarily integrated
into the script. It may form as part of the sponsorship agreement.
|
4)
THEATRICAL CONTEXT OF PRODUCT PLACEMENT-
The context in which the product was positioned in a particular scene of the film or
web series is measured by this product placement variable.
Each brand or product placement
was attributed to one of three
categories:
|
POSITIVE
|
Any time
a brand or product is referenced or used favorably by a character in a film or online series.
|
|
UNFAVOURABLE
|
A character in the movie
made a negative reference to the brand.
|
|
NEUTRAL
|
When a brand or a
product was only heard or shown on the screen, it was neutral. Considering
the brand's billboard in the setting
|
FINDINGS
The following
are the findings of the quantitative research:
Figure1
The figure
shows that the use of product placement in web series is more than prevalent,
every series has used a product placement at least once with some using product
placement in two digits.
Figure
2
This figure
shows the brand visibility in total for every series is considerably high with
a minimum of 8 seconds for Romies, a maximum of 20 seconds for Aspirants, and
an average time of about 12 seconds for all the series.
Figure
3
The data
presented in Figure 3 illustrates the predominance of positive portrayals in
product placements, accounting for 60% of all observed instances. This trend
indicates that brands prefer aligning their products with favourable narratives
to enhance consumer trust and emotional connection. Neutral portrayals, at 30%,
reflect situations where the product's presence is neither highlighted nor
criticized, ensuring subtle brand visibility. Negative portrayals, comprising
only 10%, demonstrate the cautious approach taken by advertisers to avoid
associations that might harm their brand image. These findings emphasize the
strategic use of product placement to influence consumer perceptions
positively.
Figure
4
Figure 4 highlights the distribution
of product placement types, showing a clear preference for implicit placements
(50%). This approach allows advertisers to seamlessly integrate their brands
into the storyline without disrupting the viewing experience. Integrated
placements, comprising 30%, play a more direct role in the narrative, often
tied to the plot or character actions. Non-integrated placements, at 20%,
suggest sponsorship arrangements that do not rely on creative integration. The
dominance of implicit and integrated placements reflects a strategic shift
towards subtle, yet impactful, advertising techniques that align with modern
consumer expectations.
GENERAL FINDINGS
The findings from the analysis of
product placement in web series reveal several significant insights that can
inform both regulatory guidelines and advertising strategies. Here is a
consolidated conclusion:
1. Increasing
Prevalence of Product Placement
Duration and
Frequency: The
analysis shows that product placement is a prominent strategy in web series,
with varying durations of brand visibility across different series. For
instance, "TVF Aspirants" had the highest brand visibility duration
(20 seconds) and frequency (15 placements).
Platform-Specific
Trends: Web series
on platforms like YouTube, Netflix, and Amazon Prime are leveraging product
placement to monetize content while maintaining subtlety.
2. Positive
Portrayals Dominate
Theatrical Context: A significant majority (60%) of
product placements were portrayed in a positive context, likely aimed at
enhancing consumer trust in the promoted brands. Only 10% of placements had
negative portrayals, indicating that brands are cautious about their image.
3. Subtle Integration
is Preferred
Type of Placement: Implicit placements (50%) were the
most common, suggesting a preference for non-disruptive advertising that blends
naturally with the storyline. Integrated placements (30%) also play a
significant role, particularly when the product is central to the plot.
4. Impact of Genre
and Ratings
Highly Rated Series: Web series with higher IMDb
ratings (e.g., "Kota Factory" and "TVF Aspirants") tend to
have more frequent and longer product placements, likely because these series
attract larger, more engaged audiences.
5. Regulatory Gap
Lack of Disclosure: The findings highlight the absence
of mandatory disclosure of product placements in Indian web series, which can
mislead consumers, particularly younger audiences who may not recognize the
promotional intent.
6. Need for Ethical
Advertising
Children and
Vulnerable Audiences:
The prevalence of implicit and integrated placements raises concerns about the
ethical implications, especially in content targeting younger audiences who are
less likely to distinguish between content and advertising.
EXISTING REGULATIONS AND LAWS IN OTHER
COUNTRY
India’s recent rules for ott platforms and intermediaries (guidelines for
intermediaries and digital media ethics code) are a welcome step to regulate a
tremendously unregulated market another aspect of it which needs regulations
is product placement. Product
placement was first used in Lumiere film of the 1890s[15]
and its use is exponentially growing till date.
It is globally used as a medium of advertisements on a wide scale in web series,
be it on OTT platforms or social media platforms. However, it is highly
unregulated and needs regulations. Given the current dynamic and constantly
expanding scenarios for product placements in the world, more explicit
laws must be passed.
The laws regarding product placement vary by country and can range from
being heavily regulated to being relatively unrestricted. In some countries,
such as the United States, product placement is largely unregulated and is
often used as a marketing tool. Other countries, such as France, have strict
laws in place to limit the use of product
placement in media. Businesses and content creators
need to be aware of the laws and regulations in their respective countries when engaging in product placement. So what are these
laws in different countries let's take a look at some of them:
The US - In the US, the
Federal Communications Commission (FCC)
considers decreeing better disclosure of brand placement during each scene in
which placement occurs
When a broadcast station transmits any matter for which money, service, or other
valuable consideration is paid or promised to, or charged or accepted by such
station, federal law and FCC rules require
the broadcaster to announce, at the time
of the broadcast, that such matter is sponsored, paid for, or furnished and the
identification of the sponsor, according to section 73.1212(f) of the FCC
Sponsorship identification rule[16]
These rules do not apply
to web series and OTT platforms but to broadcast radio and television stations.
EU - The EU amended the provision of audiovisual media
services (Audiovisual Media
Services Directive)[17]
in 2018 to allow product placement and specific provisions it which are related
to product placement are
1.
It
maintains only that advertisers should be honest and upfront with the public they are seeking
to influence. If a show contains embedded
ads then that fact should be
clearly labelled.
2.
The
Commission should acknowledge that the failure to prominently inform viewers of
product placements is unfair and deceptive.
3.
Such
disclosure should be clear and conspicuous. It should be large enough, and kept
on the screen long enough so that it can be read and understood.
4.
Disclosure at the outset
of the program should be in plain English, such as:
“This program contains paid advertising for….
5.
Product
placement should not be allowed in news and current affairs programmes,
consumer affairs programmes, religious programmes and children's programmes. In
particular, evidence has shown that product placement and embedded advertisements can affect children's behaviour as children
are often not able to recognise the commercial content. There is thus a need to
continue to prohibit product placement in children's programmes. Consumer
affairs programmes are programmes offering advice to viewers or including
reviews on the purchase of products and services. Allowing product placement in such programmes would blur the distinction between advertising and editorial content
for viewers who may
expect a genuine and honest review of products or services in such programmes.
6.
The liberalisation of product placement
has not brought about the expected
take-up of this form of audio-visual commercial communication. In particular,
the general prohibition of product placement, albeit with some exceptions, has
not created legal certainty for media service providers. Product placement
should thus be allowed in all audiovisual media services and
video-sharing platform services, subject to exceptions.
7.
Viewers shall be clearly
informed of the existence of product placement by an appropriate identification at the start and at the end of
the programme, and when a programme resumes after an advertising break, in
order to avoid any confusion on the part of the viewer.
Australia- Australia does not
have explicit product placement laws but certain general laws apply to product placements such as restrictions on the use of
tobacco and alcohol products in your film; and General legal issues when
using recognisable brands and products in your film.
Canada - Likewise, product
placements are not specifically prohibited by Canadian law. According to The
Code of Ethics of the Canadian Marketing Association[18],
product placement in entertainment programming is permissible. Advertisers must
still use caution to make sure that the placements do not break additional
advertising and marketing regulations, such as:
False and misleading advertising, industry-specific prohibitions (such as alcohol and
tobacco placements), and marketing to children and young adolescents are all
examples of false and misleading advertising.
France- France does not have specific
laws for product placement but certain other provisions apply to product
placement
The following may not be advertised:
In France, advertising targeted towards children is rigorously regulated,
in particular by Decree No. 92-280 for television advertising (article 7)[19].
Advertisements must maintain
their physical and moral integrity. Children should not
be encouraged by advertisements to persuade their parents to buy a product.
Children should never be put in a risky or harmful setting.
A proposal
about advertising to children was also made by the ARPP. For instance, the
advertising cannot feature images of children that are offensive to their dignity
or decency or otherwise likely
to shock or offend others.
Advertising must refrain from depicting any explicit or implicit acts of
moral or physical abuse. Under no circumstances may the advertising, through
its messages or its presentation, play down the significance of violence or
abuse or give the impression that such behaviour is acceptable.
Product placement is banned in certain countries like Poland[20]
where there is a strict prohibition on placing products
and certain topics
in all media productions,
for promotional purposes Despite being in existence for over century product
placement laws are very vague and implicit around the world there is a need for
regulation and more explicit laws in different countries banning as in Poland is no solution
as product placement is not the solution as a general
prohibition of product
placement, albeit with some
exceptions, has not created legal certainty for media service providers[21].
EU has come up with certain guidelines but more comprehensive and detailed
rules are awaited
CONCLUSION AND SUGGESTED GUIDELINES
Nearly 49% of India’s youth spend 2-3 hours per day binge-watching
content online[22],
while four hours is the average time spent in consuming OTT video content in a
day by millennials and Gen Z. The superior content
of the web series and its 24X7 availability triggered the people to
shift towards web series.
Also, majority of people like OTT’s ability
to download all the episodes
of web series at a time, on demand supply of series and its
accessibility to anywhere. This growing shift towards the web series
has increased the viewership considerably. This increased surge
in viewership has diversified the platform of web series and has incentivized
the production giants to employ advertising in these web series. Increased
viewership also underlines the need to have a regulated approach towards
advertising in web series so that the rights and safety of the digital
consumers is safeguarded.
Based on the laws of different countries, we propose certain guidelines
which may be considered while making laws. The guidelines are divided into 3
parts: Disclosure of product placement, undertaking due diligence, and
advertisement targeting children.
1. Disclosure-
Product placement which is done without disclosure is misleading to the consumers as the influence of an actor is evident when consumers
buy the products that are discretely advertised in these
product placements where full disclosure is not provided. Thus it is the responsibility
of the advertisers and ott platforms to clarify the intentions of the ad so
that the audience is not misled due to their emotional attachment to the
character.
i.
Disclosure should be clear and conspicuous. It should be kept on screen long enough so that it can be read
and understood.
ii.
Disclosure should be in plain English,
such as: “This program contains paid advertising for..."
iii.
The platform
streaming the web series must ensure full disclosure of that
fact at the time of the airing
of the material who provided
or promised to provide the
consideration so that the public knows who is trying to persuade them with the
programming being aired
iv.
The
disclosure must be made in a manner that is well understood by an average
consumer
v.
The disclosure must be made at the beginning and end of each episode for a minimum time receptible by
the viewer and it should be non- skippable.
2. Undertaking due diligence
- Series makers must ensure due diligence or investigate and evaluate that their product
placement is legal in all terms and that
it is not a misleading or false representation.
i.
The the streaming platforms are advised to review and satisfy
themselves that the advertiser is in a position to substantiate the claims made
in the advertisement.
ii.
Advertisers must refrain from depicting any explicit or implicit acts of
moral or physical abuse. Under no circumstances should the advertising minimise
the gravity of violence or abuse by its messaging or manner of presentation.
iii.
Advertisers
should be honest and upfront with the public they are seeking to influence. If a show contains embedded
ads then that fact should be clearly labelled
iv.
Incorrect
and misleading advertising, such as when a product or service is utilized to convey false information about its features
should not be streamed.
v.
Advertisement
should be non-offensive to the public and to generally accepted standards of
public decency. And should not be indecent, vulgar in the light of generally prevailing standards of decency,
to cause grave
and widespread offence.
vi.
Advertisements
should not be harmful products and situations, particularly advertisements made
for minors.
vii.
Advertisements
must be fair in competition such that they observe fairness in competition such
that the consumers need to be informed on choice and the canons of generally
accepted competitive behaviour in business are both served.
viii.
Advertisements should
follow the law of the land on
advertisements.
3. Advertisements targeting children - Children and young people are increasingly regarded
as consumers, with money of their own to spend as well as
strong influences on their families' consumption habits Revenue in the Baby
& Child segment amounts to US$4.65bn in 2023. The market is expected to
grow annually by 4.42%. In particular, product placement in television shows
and movies targeted
at children represents a
widely used communication instrument today. It harder to detect product placement as a form of marketing communication, especially by children
so a specific guideline for children is needed.
(i.)
Advertisers should think about employing ethical
product placement rather than the placement of more damaging products
which may be more successful than traditional
advertising, to encourage healthy behaviour in young people.
(ii.)
There should be more social responsibility on the side
of the advertisers because children are a vulnerable demographic and may be
negatively implied by commercial effects on their health.
(iii.)
Children should not be encouraged by advertisers to
persuade their parents to buy a product.
Children should never be put in a risky or harmful
setting.
(iv.)
Advertising cannot feature pictures of children that
are offensive to their dignity or decency or that are likely to shock or
provoke people.
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Article Information
PRODUCT PLACEMENT IN WEB SERIES: A SOCIO-LEGAL ANALYSIS OF EMERGING TRENDS AND REGULATORY NEEDS
Authors: AAKARSH SETHI
- Journal IJLRA
- ISSN 2582-6433
- Published 2025/01/20
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
- Access Open Access
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