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PQ Media Update: US Product Placement Revenues Up 13% in 1H15; Pacing for 6th Straight Year of Accelerated Growth As Value of TV, Digital & Music Integrations Surge
  • USA - English


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PQ Media

Jun 15, 2015, 06:00 ET

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PQ Media - Intelligent content for smarter business decisions. Are you ready? Get the Data.
PQ Media - Intelligent content for smarter business decisions. Are you ready? Get the Data.

Stamford, CT (PRWEB) June 15, 2015 -- US product placement revenues surged 12.8% to $6.01 billion in 2014, fueled by the growing value of television, digital and music integrations, as well as rampant DVR use and emerging telenovela opportunities, according to the PQ Media Global Branded Entertainment Marketing Forecast 2015-19. PQ analysts estimate that if the first-half 2015 pace is maintained, product placement will grow 13.2% for the year, marking the sixth consecutive annual expansion since 2009, when the US market declined for the first time ever.

No advertising, marketing or other consumer-facing engagement tactic can match the durability, consistency or growth trajectory of product placement since 1975. -Patrick Quinn, CEO & CCO, PQ Media LLC

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While TV remains America's most consumed medium, viewing of first-run programs is declining in favor of time-shifted video, often to avoid traditional 30-second ads. As a result, product placement has strengthened its position in the multimedia campaign mix. In addition, US marketers have become savvier about integrating brands and products into program content instead of settling for less expensive brand or product cameos.

Evolving script integrations were a key driver of TV show placements in 2014, as the value of US broadcast & cable television integrations surpassed $4 billion in 2014, accounting for more than two-thirds of total US product placement revenues. Another key strategy is negotiating key placement deals to ensure close proximity to commercial breaks in which a brand’s product is slated to appear first in a multi-spot ad pod to increase viewer engagement, according to PQ Media [http://www.pqmedia.com .

“There is no advertising, marketing or consumer-driven media tactic that can match the durability, consistency or growth trajectory of product placement,” said Patrick Quinn, CEO & CCO, PQ Media [http://www.linkedin.com/in/patrickjquinn , a premier source of intelligent content & data solutions designed to help executive leaders in the media, entertainment & technology industries make smarter business decisions amid the fragmenting media ecosystem. “Product placement has remained a steady component of successful multimedia strategies for more than a century because well-executed brand integrations time and again have demonstrated the ability to engage audiences and create strong emotional connections.”

The USA is by far the largest product placement market worldwide, reaching $6.01 billion in 2014, and combined with two other major markets in the Americas region -- Brazil and Mexico -- this triumvirate accounted for nearly 80% of the global product placement market, PQ estimates. The only other top global market to exceed $1 billion in size last years was Brazil, driven by very high use of paid placements in popular telenovelas; followed by Mexico's growing market, also fueled by telenovela integrations.

Value of US product placements will reach $11.44 billion in 2019, still way ahead of Brazil’s $2.26 billion, and Mexico’s $1.56 billion, PQ estimates. Additionally, major brands are targeting product placement investments for media content favored by younger audiences. Accordingly, the value of digital media integrations grew the fastest of the eight media channels tracked by PQ Media, surging 35.8% in 2014 as brands become more innovative in how they capitalize on social media trends, such as developing live placements, such as Samsung's selfies during the Oscars.

Also growing rapidly is brand integrations in recorded music, including some of the world’s biggest pop stars such as Lady Gaga, Beyonce, Britney Spears and Rihanna, driving 15.9% growth. Music videos producers increasingly using product placements to help defray costs, with Dr. Dre Beats headphones and speakers appearing in more than a dozen videos and brands increasingly showing up in lyrics, according to a recent academic study.

Brands are increasingly being the focus of entire movies or TV shows, such as Google in The Internship and Apple in Modern Family. In fact, Apple has stepped up the number of integrations it has requested, voted by several outlets as the top product placement brand in 2014.

--PQ's Value-Add Video: To watch a short video compiled by FastCo featuring some content and data from PQ Media’s Branded Entertainment & Product Placement Series, click on this link https://www.youtube.com/watch?v=tGOeM4nB1Ys

About the Forecast:
The PQ Media Global Branded Entertainment Marketing Forecast 2015-19 has been the industry’s KPI benchmark for 10 years, delivering exclusive data on product placement in various media, B2C event sponsorships, and consumer event marketing generated revenues, market sizes & growth; key growth drivers; and critical challenges ahead; segmented by global region, market, media platform, sector & channel (tv, film, videogames, recorded music, online, mobile, other media]), as well as B2C event sponsorships & marketing.

The 6th edition covers the 2009-19 period, with 2014 actuals, 2015 pacings & 2015-19 forecasts; New value-add features in this year’s version include:

--New PowerPoint format for subscribers to leverage and manipulate varied biz intel, like cross-media data comps by channel; and be prepared for key internal reports & presentations with PQ’s newly designed deck of 250 data-rich slides providing exclusive strategic intelligence supported by a credible and consistent methodology, definitions and historical datasets.

--Also provided in the 2015 edition are hundreds of deep-dive supplemental datasets on the Top 15 Global Media Markets by region, country, media sector and channel, which are bundled into special Excel Databooks. These multi-tab workbooks deliver the broadest and deepest econometric study of branded media channels available anywhere, with over 325 datagraphs.

About PQ Media:
PQ Media [http://www.pqmedia.com is a premier source of intelligent content and data solutions designed to help executive leaders in the media, entertainment and technology industries make smarter business decisions amid a fragmenting media media economy. Call Patrick or Leo at 203.569.9449 to schedule a free 15-minute phone consultation, and we will develop a simple and customized plan for you to leverage the actionable strategic intelligence & guidance services you need to succeed in our rapidly changing tech, media & telecom ecosystem.

Patrick Quinn, PQ Media, http://www.pqmedia.com, +1 203-569-9449, [email protected]

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PQ Media - US Product Placement Market - Executive Overview
PQ Media - US Product Placement Market - Executive Overview
PQ Media - US Product Placement Market - Executive Overview

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