Mar 1, 2005 12:00 PM, Amy Johannes

Warner Bros. Domestic Television Distribution is cutting new deals to graphically insert products into TV sitcom re-runs. Such digital advertising uses computer technology to add any product, such as a soda can or box of detergent, to a scene or scenes within a re-run show.

The virtual product placement effort by Warner Bros., called “digital branded integration,” will target off-network shows, including Will & Grace and The Drew Carey Show, according to a source. The studio has signed a few deals with CPG brands, although the source would not disclose which products would be featured in the syndicated versions. Wakarusa, IN-based Marathon Ventures, a marketing and advertising firm, will provide the virtual product placement for Warner Bros., sources said.

Warner Bros. declined to comment.

The digital video technology has been around for years, largely used in sporting events (think of the yellow first down line on football fields or digitally placed ads on billboards).

Now, viewers may see a box of cereal on a kitchen counter in a Will & Grace episode where it hadn't appeared in the original. The virtual product placement will be subtle, sources say, but consumers will notice the product.

Product placement has its critics. Consumer watchdog group Commercial Alert questioned whether product placement blurs the line between advertising and programming, prompting an investigation by the Federal Trade Commission.

In a September 2003 letter, Commercial Alert Executive Director Gary Ruskin wrote that the failure to disclose that advertisers have paid for product placement constitutes an unfair or deceptive practice in violation of Section 5 of the FTC.

In February, the FTC ruled such disclosure unnecessary. It will, however, continue to evaluate a case-by-case basis whether an advertising format or specific product placement is deceptive or likely to cause consumer injury.

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