Product placement, also referred to as stealth advertising, raises important questions when it comes to television because a far larger audience views television than movies. Product placement in newscasts is even more controversial. Television news is expected to be free of persuasive attempts and provide citizens with basic information that is of public importance. Yet, product placement blurs the line between journalism and commercial promotion, thus destroying the integrity of the news. Product placement in newscasts raises ethical questions about the effect it has on viewers, provided that they do not realize that they are presented with commercials, framed as news story. Yet, this paper argues that, since viewers focus on the actual news and do not elaborate consciously on the advertised product or brand, product placement in newscasts has little effect on their brand recall. To support this hypothesis the paper compares brand recall from product placement and commercials. Results revealed that this hypothesis is partially true. Important discovery from this study is the fact that product placement directly affects news credibility.