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Global Product Placement Spending Grew 37% in 2006; Forecast to Grow 30% in 2007


STAMFORD, Conn. - Global paid product placement grew 37.2% to $3.36 billion in 2006 and is forecast to grow 30.3% to $4.38 billion in 2007, driven by relaxed European regulations, emerging Asian markets and shifting American models, according to research released today by PQ Media, the world’s leading provider of alternative media econometrics.

While the United States remains the largest global market for product placement, accounting for two-thirds of spending, growth will decelerate over the next four years, although remaining in the double-digits. Meanwhile, growth in the European and Asian placement markets will accelerate going forward, as legal restraints are loosened and global brand marketers move to capitalize on emerging opportunities in these regions, according to the PQ Media Global Product Placement Forecast Series 2006-2010: Country-by-Country Analysis. This new research series features individual reports on the 15 leading markets in Europe, Asia and the Americas, including data and analysis covering the period from 2000 to 2010.

Key drivers of global product placement growth in 2007 and beyond include the relaxation of rules governing paid television placements in European countries through the “Television without Frontiers” directive, particularly in the United Kingdom, Spain and Italy; the evolution and growth of product placement markets in Asia, especially in China, India and Australia; and the continuing transition from non-paid to paid placement models in the Americas, primarily in the United States, Mexico and Brazil.

“As a new media order has emerged in recent years, our research indicates that we are entering an era of alternative advertising and marketing strategies,” said Patrick Quinn, President/CEO, PQ Media. “Brand marketers are seeking to better engage consumers with emotional connections and media companies are searching for new revenue streams as traditional advertising methods suffer from negative perceptions. As a result, product placement has emerged from a novel marketing tactic just a few years ago to a key marketing strategy worldwide.”

TV placements remain the dominant choice of brand marketers, accounting for 71.4% of global spending in 2006 at $2.40 billion, with projected growth of 33.9% in 2007. Film placements comprised 26.4%, or $885.1 million, of global spending in 2006 with forecasted growth of 20.5% this year, driven by more cross-promotional packages linking movie placements to ad spots, websites and point-of-purchase displays, as well as virtual embedding for local targeting. While placements in other media account for only 2% of total spending, growth will exceed 30% over the next several years due to increased demand for videogame and online placements aimed at the elusive 18- to 34-year-old demographic.

The Americas will remain the largest and fastest-growing region for paid product placement in 2007, with projected spending of $3.79 billion and growth of 31.2%, followed by Asia and Europe. The United States will remain the world’s largest market for product placement in 2007 with spending of $2.90 billion, followed by Brazil, Mexico, Australia, and Japan. China will be the world’s fastest-growing product placement market in 2007 with spending growth of 34.5%, trailed by the U.S., Italy, India and Canada.

Although the share of non-paid placements, including barter and added-value arrangements, is declining, these types of placements are still used often throughout the world. To determine the value of non-paid placements, PQ Media employed the iTVX Q-Ratio, the world’s most widely used product placement valuation tool. The overall value of the global product placement market, including the exposure value of non-paid placements, grew 24.2% to $7.76 billion in 2006 and is projected to increase 20.3% to $9.33 billion in 2007, according to the PQ Media Global Product Placement Forecast Series 2006-2010: Country-by-Country Analysis.


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