Stamford, CT (PRWEB) December 05, 2012
Global product placement spending increased 9.8% to $7.39 billion in 2011 and is on pace to grow at an accelerated rate in 2012, as new technology, shifting media habits and looser restrictions drive brands to seek more effective tactics to reach elusive modern consumers, according to data released today by PQ Media (http://www.pqmedia.com).
US product placement spending rose 10.2% to $4.26 billion in 2011 and is striding toward a third consecutive year of faster growth in 2012 on the strength of paid placements in television, internet, mobile and music content, according to the PQ Media Global Product Placement Spending Forecast 2012-2016. US marketers continue to up their investment in product placement in an effort to connect with harder-to-reach, multitasking consumers who are using digital and wireless technology to consume content more often and to view advertising less frequently.
The US remains, by far, the world’s largest product placement market, accounting for 57.6% of total spending in 2011. No other market generated more than $1 billion, although Brazil and Mexico each surpassed $500 million, while Australia, Japan, France, the UK and Italy exceeded $100 million. China was the fastest-growing market, expanding 26.6% in 2011 to $81 million, as more global brands use product placement in Chinese television and films. Other markets that exceeded 20% growth were India and Russia, according to the PQ Media Global Product Placement Spending Forecast 2012-2016.
“Technological advancements and changes in consumer behavior have caused brand marketers to design multimedia strategies to engage fast-moving, 21st century end users,” said Patrick Quinn, CEO of PQ Media. “Increased accessibility to content and faster media consumption have further complicated the advertising and marketing landscape, driving brands to invest in alternative media tactics. Product placement re-emerged in 2000 and grew into a viable marketing tool due to its unique emotive capabilities.”
In addition to secular changes affecting US and global markets, Western European and Asian countries benefited from improved regulatory environments, as restrictions on paid product placements were relaxed in recent years. Positive developments, however, were tempered by global events that adversely impacted media markets, such as the Japanese tsunami, the European financial crisis and Middle Eastern political upheaval. While the Great Recession dealt a major blow to most advertising and marketing media worldwide in 2009, product placement sustained only a minor dent before recovering to post accelerated growth in 2010 and 2011. Strong growth in four of the past five years fueled a 12.6% compound annual growth rate (CAGR) for global product placement spending in the 2006-11 period, driven by a 12.8% CAGR for paid product placements in the US.
PQ Media defines product placement as a marketing tactic used by advertisers as part of a multimedia strategy in which the objective is to integrate brand names, logos or products into non-ad content of media, such as TV, film, internet, mobile, videogames and music. PQ Media included only product placement arrangements in which there is a financial transaction in this Forecast, excluding the exposure value of non-paid placements due to the accelerated shift to paid integrations, as the value of in-media real estate increases.
The vast majority of paid placements take place in television and film. US spending on TV integrations, the largest category, increased 11% to $2.83 billion in 2011, driven by growth in the unscripted reality, how-to and scripted comedy categories, as well as more placements targeting the Hispanic market through the dynamic telenovela genre. Global spending on TV placements rose 10.9% in 2011 to $4.76 billion, due to the relaxation of TV regulations in Europe and Asia, as well as global marketers more aggressively pursuing brand integrations into scripts and network producers more often requiring financial compensation for the placements, according to the PQ Media Global Product Placement Spending Forecast 2012-2016.
Paid placements in US films increased 8.4% to $977 million in 2011, boosted by brand integrations in highly anticipated blockbuster releases and growth in automotive placements. Global spending on product integrations in movies rose 6.8% to $1.53 billion in 2011, as global brands much prefer TV for placements due to uncertainties associated with filmmaking in various markets. The internet/mobile category grew the fastest in 2011, as US spending surged 24.5% to $61 million and global spending jumped 27.9% to $188 million. Growth was fueled by marketers investing more in brand integrations targeted at heavy users of internet and social media.
Total US product placement spending is projected to increase 11.4% in 2012 to $4.75 billion, fueled by strong growth in paid integrations on TV, internet, mobile and music media, as brands continue to pursue alternative marketing solutions to engage fast-paced Americans. Global product placement spending is expected to rise 11.7% in 2012 to $8.25 billion, driven by gradual economic recovery, accelerated deployment of TV integrations in Europe and strong expansion in the BRIC countries.
The PQ Media Global Product Placement Spending Forecast 2012-2016 – the 5th edition in the series – is the industry’s benchmark for spending, growth, analysis and insights, providing in-depth coverage of all three major global regions and 15 leading markets for the 2006-16 period. The Forecast includes 64 pages of analysis and 39 data tables. PQ Media (http://www.pqmedia.com) is a leading provider of econometric research and consulting services to the media, entertainment and communications industries. PQ Media’s proprietary methodology delivers actionable strategic intelligence to help media companies, financiers, agencies and brands meet their growth objectives. For more information, contact Gabriella Kallay at gkallay(at)pqmedia(dot)com or 203-921-0368.