EDINBURGH: Channel 4 is talking to Endemol to create a product placement deal for hit gameshow Deal or No Deal.

David Charlesworth, C4’s head of sponsorship, funded content and product placement, said the deal would be much more ‘naked’ than other deals being negotiated.

Charlesworth spoke at a session on product placement at the Edinburgh International Television Festival, where he explained that a deal for Hollyoaks was close to being secured.

During the session, Charlesworth showcased a number of Hollyoaks clips with theoretical product placement featured including a character holding a Costa coffee and a poster with O2 on it.

The broadcaster had been negotiating with Lime Pictures, the producer of Hollyoaks for nine months before it created a pamphlet with Hollyoaks product placement opportunities.

The document, shown to agencies and brands, identified up to up to £12m worth of opportunities.

C4 has conducted rigorous research into product placement which has found that the audience want to be actively interested in the product in the programme and don’t want the feeling that they are being sold to, he said. “We need to make sure we never over step the mark”, he added.

“Ofcom’s regulation of product placement is in tune with public opinion”, he added.

Style the Nation, produced by TwoFour, was C4’s first product placement deal.