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Product Placement on the Rise

The days of generic cola cans in movies are over. Whoever pays for placement now gets their can, bottle, car, what-have-you on screen — with the label prominently displayed.

August 23, 2006

The "Media Global Product Placement Forecast 2006" report, from PQ Media, finds that as advertisers pushed agencies for results and brand marketers scrambled to find new, effective ways to engage consumers, global paid product placement spending surged 42.2% in 2005, reaching $2.21 billion.

Worldwide Paid Product Placement Spending, by Media, 2005, 2006 & 2010 (millions and % increase vs. prior year)

PQ Media forecasts that global paid product placement spending in TV, film and other media will rise by 38.8% in 2006, to reach a total of $3.07 billion.

Looking even further ahead, as product placement growth continues to significantly outpace that of traditional advertising and marketing, PQ Media expects global paid product placement spending to grow at a compound annual rate of 27.9% from 2005 to 2010, to reach a total of $7.55 billion in the latter year.

"Product placement has evolved from a novel marketing tactic to a key marketing strategy on a global scale, as brand marketers seek more effective methods to make important emotional connections with consumers," said Patrick Quinn, president of PQ Media. "This trend is significant in that there is a new media order emerging worldwide in which fear of ad-skipping technology, doubts about traditional advertising's effectiveness, and declining government media subsidies have fueled a dramatic increase in the value of seamless brand integration."

The US is currently the world's largest paid product placement market, at $1.5 billion in 2005, up by 48.7% over the previous year, also making it the world's fastest growing market.

Top Five Countries Worldwide, Ranked by Paid Product Placement Spending for Select Media, 2005 (millions)

Brazil and Australia are the next two largest markets for paid placement spending, at $285.3 million and $104.3 million respectively in 2005. France ranks fourth, followed by Japan.

When the barter/exposure value of non-paid placements is included, the total value of the worldwide product placement market is expected to reach a total of $13.96 billion by 2010.

For more on ad spending trends, read the eMarketer report Ad Spending Trends: The Internet and Other Media.

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