Children are already exposed to product placement via movies. My daughter is interested in film making, and we make a bit of a game (not in the cinema, you'll be pleased to hear) of spotting it, calling out "Gratuitous lingering shot on coffee cup" or "This watch would make even you look cool!" and, in fact, I suspect they're so media-savvy that it devalues brands in their eyes.  They've been taught since they were small that people try to sell them things by promising they'll make them happy, popular or cool, and this is really just an extension of that.

However, my children are a bit older, and, well, have a cynic like me for a mum. Family based media training isn't universal, and schools don't really cover it directly either, though there are plenty of chances to bring it up, and no child I've worked with is left in any doubt what advertisements are for. As ever, it's the children sat in front of a screen without adult supervision, commentary or discussion who are most at risk. There are strict rules about what can be advertised to children and how, and I firmly believe that any form of product placement before or after the watershed should have to abide by these.