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Convergence and the Potential Ban on Interactive Product Placement in Germany

Author

Listed:
  • Christian Jansen

    (Humboldt-University of Berlin)

Abstract

This paper addresses the economic impact of German advertising regulations. The digital convergence of media provides a starting point for the analysis. This convergence makes technically feasible “interactive product placement” (IPP), the integration of interactively purchasable products in television programs and movies for the purpose of advertising. Such advertising could conceivably outstrip traditional product placement as a source of revenues for the film industry. Moreover, IPP could provide valuable incentives to create new audiovisual hardware and software. As product placement is generally banned in Germany, we critically review relevant regulations. Additionally, a simple model is developed that allows for a welfare economic approach to the analysis of an IPP ban.

Suggested Citation

  • Christian Jansen, 2003. "Convergence and the Potential Ban on Interactive Product Placement in Germany," Law and Economics 0302002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwple:0302002
    Note: Type of Document - pdf; prepared on PC; pages: 36
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/le/papers/0302/0302002.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Advertising regulations; German film industry; interactive product placement; law and economics;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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