In the first global product placement study broken out by TV, film and other media, Stamford-based PQ Media has determined that global paid product placement spending surged 42.2% in 2005 to US$2.21 billion, and that double-digit pace will likely continue in years to come. That jump was largely fired by the reality, drama and sports markets.
According to the ‘PQ Media Global Product Placement Forecast 2006,’ global paid product placement spending in tv, film and other media will climb another 38.8% to $3.07 billion in 2006, driven by the continued shift in the world’s leading markets from a barter and added-value model toward a paid placement structure.
The US is the world’s largest paid product placement market at $1.50 billion in 2005. (Up 48.7%, making it the world’s fastest growing market.) Brazil and Australia are the next two largest markets at $285.3 million and $104.3 million, respectively. On the strength of its paid film placement market, France ranks fourth, followed by Japan. Penetration is moving slower in Europe due to stricter rules governing the use of product placement. But PQ Media’s Global Opinion Leader Panel believes this will change by year-end 2007, when the European Union is expected to liberalize restrictions on the practice. PQ Media forecasts that global paid product placement spending will grow in the 2005 to 2010 period to $7.55 billion. The overall value of the worldwide product placement market, including the barter/exposure value of non-paid placements, will increase to $13.96 billion by 2010.
A free executive summary of the ‘PQ Media Global Product Placement Forecast 2006′ is available for download at www.pqmedia.com/global-product-placement-2006.html.