In the modern era, where media plays an important role of people's lives, commercial communications and advertising play a special role in shaping consumer behavior, desires and decisions. In a reality saturated with information and competition, it is vital for companies to have effective advertising communication in order to attract the attention of the target audience and increase the demand for their product on the market.

Despite the fact that in the 21st century advertising moved to social networks, television still remains the main connecting bridge between companies and consumers and provides information about various products through 4 main types of TV advertising, the most effective of which is product placement. Due to this responsibility, broadcasters are required by law to take into account the interests of consumers and to observe the broadcasting standards, especially the rules for placing advertising communications.

Forms of TV Advertising

Commercial advertising, teleshopping, sponsorship and product placement are the 4 main types of TV advertising. As they differ significantly from each other, there are individual rules that apply to each of them. Commercial adverts are the traditional form of advertising that uses allocated slots. Teleshopping is a programme consisting of direct offers of products or services. Like commercial advertising, it uses allocated advertising slots. In both cases, clients can include the price, address, positive features, promotions and calls to purchase in the communications. Sponsorship involves direct or indirect financing of a programme where the sponsor can only be briefly identified. As for product placement, it is one of the most effective forms of advertising and involves integration of a product into the TV programme.

It should be noted that, unlike traditional advertising and teleshopping, product placement is not separated by commercial slots, and unlike sponsorship, it is not separated from the script or content of the programme, which is why this type of advertising is more difficult to identify for the viewer.

According to the Law of Georgia On Broadcasting, it is important not to confuse different types of advertising communications with each other. For example, sponsorship should not turn into teleshopping, product placement should not turn into commercial advertising, and all advertising communications should be made according to the relevant rules. Failure to do so damages the user's right to choose what to watch, spoils the quality of the media product, and reduces advertising revenues.

Product Placement Violations

Violating product placement rules is a gross violation of viewers' rights, as it may lead to viewers, especially children, youth and other vulnerable groups, making uninformed decisions. For example, in Georgian TV programmes, it is common to place medical products in violation of the rules, which may harm both a viewer’s finances and their health.

The impact of TV advertising on the consumer is evident from the 2023 study carried out by the American advertising firm BenLabs, according to which three-quarters of the respondents in the U.S. started researching a product after seeing it on a programme, with almost 60% ultimately buying the product. Once again, this highlights the necessity for the broadcaster to perform product placement in accordance with the rules to avoid misleading the consumer.

Although the legislative framework for advertising in Georgia is in order and the relevant guidelines are in place, the two major product placement violations (stealth advertising and excessive importance) still occur frequently on Georgian television.

Stealth advertising is one of the most common forms of advertising violations, which involves placing any form of advertising without proper identification. In this case, viewers are not aware that they are watching an advertising communication, and they may consider it a part of the programme or even the personal opinion of a presenter whom they trust.

By excessive importance, we mean placing excessive emphasis on a product during a TV programme, naming the product price or highlighting a promotion, showing frequent close-ups, overemphasising the positive features, presenting the product in large amounts, or devoting a lot of time to it. On the one hand, this has an influence on viewers and encourages them to make a poorly informed choice, while on the other hand, it alters the content of the programme, thereby reducing the quality of the media product.

The Goal and Approach of the Communications Commission

The Communications Commission possesses all the mechanisms for sanctioning the broadcasters who commit violations. However, we aim to take into account the broadcaster's circumstances along with the rights of the viewers, as we are aware that product placement revenues account for a certain part of the budget of TV stations. The Communications Commission has decided to afford broadcasters an 8-month transition period, allowing them to avoid financial losses through fines, and to gradually bring their work, approaches and contracts with customers into full compliance with the law. During this period, the Communications Commission will conduct active monitoring without resorting to sanctions. At the end of the transition period, the Commission will start strictly enforcing the law. 

Furthermore, in order to make our approach transparent and predictable for broadcasters, the Commission is ready to individually visit any channel, meet marketing and legal service representatives, producers and presenters, respond to any of their questions, and provide them with advice and recommendations on how to perform product placement without violating the rights of the viewers.