Do you ever get excited when the commercials come on during your favorite nighttime show? Have you ever fast-forwarded through a TV show JUST to watch the commercials? That’s right – I said watch the commercials. I mean, honestly – who watches commercials anymore? That’s just weird. Nowadays, with the invention of TiVo and the like, watching commercials at all is a thing of the past. Thus, we find ourselves in a television world filled with product placements.

Reality shows are bursting at the seams with brands! American Idol judges obviously drinking Coca-Cola… the Extreme Makeover: Home Edition crew obviously driving around in a Ford Pickup truck. These reality shows are not the only product placement outlets. One of my favorite comedy series, Modern Family, has also jumped on the product placement bandwagon.

Modern Family isn’t so quick to place, however. During an interview with AdAge, executive producer and creator Steven Levitan shared that the show turns down approximately 90% of requests from advertisers – advertisers who are willing to pay a LOT of money to have their product featured on the show.

If you’ve ever watched Modern Family, you’ve probably noticed that the products aren’t just placed in the background. Products shown on Modern Family are intentionally tied into the storylines and are only used if they are in harmony with the character’s persona. The makers of Modern Family want use of the product to seem as realistic as possible. That means, we probably won’t see Claire Dunphy strolling around the house in a pair of Louboutin’s signature red sole heels – her character just wouldn’t do that. Blair Waldorf from Gossip Girl on the other hand – that’s a different story.

With all of the competition between brands to be placed – I wonder – is the high cost really worth it? Did consumers feel the urge to run out to Target after they saw Claire and Haley Dunphy find all of their “express Christmas” presents in just one Target trip? Did consumers want an Apple iPad that much more after seeing Phil Dunphy beg for the gadget himself and fawn over it for the rest of the episode?[1]

Modern Family’s style of product placement raises the question – is it better to be placed on a show like Modern Family where the placement is more realistic? Or would seeing an Audi in a chase scene – hopefully not a realistic use of the car – make that consumer want it more?

With advertising pressures moving away from commercials and toward inclusion in the actual programs, advertisers must consider the best way to spend their money. Which shows best suit their brand? How can the product be best placed so that the placement actually does have a positive impact on the consumers watching?

Another concern is disclosure. The FTC §5 prohibition of unfair and deceptive acts does not appear to require disclosure of these embedded advertisements. The FCC, on the other hand, requires that if program producers and broadcasters receive anything of value for the placement, the sponsorship should be disclosed.[2] Whether disclosure should occur during the show is still at issue, and as this type of advertising becomes more and more prevalent, that issue becomes more and more important.

This is the new face of the TV advertising world. To all of those advertisers hoping for a spot on Modern Family – I wish you the best of luck!