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Telemundo Telenovela Seeks Product Placement

May 30, 2007  •  Post A Comment

One of the big ideas with which television networks are tempting advertisers this season is programming without commercials.
Last week, Telemundo said its prime-time telenovela “Idolos de Juventud” will be presented commercial-free. Instead of traditional spots, brands will be woven into every episode of the show, which is scheduled to premiere in the summer of 2008.
Advertisers have long been concerned that TV viewers use commercial breaks as opportunities to get a snack or go to the bathroom rather than listen to those pesky messages from the sponsor. Those concerns have been heightened with the arrival of TiVo and other digital video recorders.
Now advertisers will be able to factor commercial skipping into the price they pay to advertise on TV because the new commercial ratings being calculated by Nielsen Media Research count viewers who watch commercials and excludes those who switch channels or fast-forward through spots.
Branded entertainment, which puts brand messages into the content of shows where theoretically it can’t be missed, has become increasingly popular with advertisers.
A recent report from PQ Media said the market for product placement in the U.S. was worth about $1.5 billion in 2005, up 49 percent from 2004. With barter and value-added deals factored in, the value of product placement in the U.S. during 2005 rises to $6.2 billion, the report said.
Product placement on television grew 70.5 percent to $941.2 million in 2005, the report said.
PQ media called product placement “one of the fastest-rising stars of this new media order.” The growth is fueled by the perception that ad-skipping technology is negatively affecting the 30-second spot, driving brand marketers to seek alternatives such as product images embedded in the program rather than presented during commercial breaks.
That means it’s good business for networks to pursue product-placement dollars.
Before Telemundo made its announcement about “Idolos de Juventud,” The CW announced a new show called “CW Now” that it planned to air without commercials. As with the Telemundo show, The CW planned to put marketers into the program, allowing them to sponsor specific segments in “CW Now,” which will look at what’s hot in fashion, beauty, music and entertainment.
In an indication of how hot the commercial-free idea is, on the day of its presentation, The CW completed a deal with major media buyer MediaVest USA, which snapped up all the advertising availabilities for the show for the season. The clients it’s putting in the show include some of the biggest TV advertisers in the country, such as Procter & Gamble, Wal-Mart, Kraft, Masterfoods and Activision.
“Idolos de Juventud” tells the story of one of Mexico’s most popular music producers as he launches the careers of Mexico’s greatest voices, among them his wife. Their marriage is not a happy one, largely due to the sizes of their egos, leaving no place for love. After discovering that his wife is no longer the star she used to be, he must create a new star by producing a reality show to find the next big voice. He discovers two stars who develop a love connection when they share a moment on stage.
By making the show commercial-free, Telemundo is being innovative, said Steve Mandala, senior VP of sales, marketing and distribution for Telemundo and NBC Universal Networks. “We respond to the needs of our advertisers by developing solutions that can harness and influence Hispanic culture on their behalf with creative branded entertainment, allowing them to extend their brand presence in a more significant way.”
Patricio Wills, president of Telemundo Studios, said he was excited about producing the show commercial-free. “This program is a breakthrough in the way we do television, organically integrating products and making them a part of the lives of the characters on screen without commercial breaks, just as in real life,” he said.
“Idolos de Juventud” will launch with a multimedia, multiscreen approach using Web site Yahoo!Telemundo and cable network mun2. Cross-promotional efforts include contests, on-air and online segments, video streaming, photo galleries and live on-air performances by the cast, among other components.
Telemundo plans sneak-peek video for mobile subscribers and in-story initiatives that will incorporate music from the show.

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