?A still from director Feng Xiaogang's 2008 romance comedy 'If You are the One', which shows female lead Shu Qi sitting in the trunk of a Subaru car. [Photo:sina.com]

The State Administration of Radio, Film and Television (SARFT), China's top media watchdog, is conducting research on embedded advertising in film to better regulate the industry's practices and safeguard audiences' interest, Beijing Daily reported on Tuesday, March 1, 2011.

There is an increasing trend of embedded ads in film and TV shows, which has aroused widespread discussion from the masses.

Embedded advertising, also known as covert advertising, is when a product or brand is embedded in entertainment and media, as in the movie "If You Are the One" ("Fei Cheng Wu Rao"), where Ge You's character Qin Fen takes out a credit card with China Merchants Bank (CMB) logo clearly written on it, or how like the car he drives is engraved with the SUBARU logo.

In foreign films, the 2010 Chevy Camaro SS can be spotted in the blockbuster "Transformers 2" while the 2009 American science fiction disaster film, "2012" showcases a Bentley car.

"In fact, embedded advertising is imported from foreign media," said SARFT vice director, Zhang Haitao to the reporter of Beijing Daily.

He added that embedded ads as a new kind of advertising have a positive effect on the development of broadcasting and the film industry.

According to Zhang, some countries have matured in such practices while China is still in a developing period which has seen certain films too embedded or inflicted with ads unnaturally forced in places that cause annoyed reactions among audiences.

Embedded advertising has become popular nowadays as the juicy returns ads pull in when placed prior to film screenings help film producers save on budgets and reduce financial risks.

Reportedly, director Feng Xiaogang earned nearly half of his funding, about 50 million yuan (US$7.61 million), for his film "If You Are the One", from embedded advertising aside from its record high box office receipts.

Zhang Haitao said they would work out laws and regulations to manage embedded advertising on a legal basis, so as to improve its development in a healthy and orderly way.