MUMBAI: Ofcom, the UK media watchdog, has given its nod to product placement on British television. In a consultation paper issued on 19 December, the regulator gave a cautious welcome to the idea of advertisers paying for their brands to appear in programmes.

"In both principle and practice, Ofcom believes that a cautious approach to the introduction of product placement to the funding mix of UK commercial television has merit," says a section of the paper.

UK media reports suggest that the move will sweep away the tightly regulated separation of editorial and advertising content on commercial television. It would leave broadcasters and independent producers free to negotiate deals with companies that produce everything from cars to washing powder.

Ofcom feels that the British market could be worth between £25m and £30m within five years. Under the proposed new rules, product placement would be banned from children's shows, news bulletins and documentaries. Tobacco and prescription drugs would not be allowed.