Product placement spending topped $2 billion globally in 2005

In the first global product placement study broken out by TV, film and other media, Stamford, Conn.-based PQ Media determined that $2.21 billion was spent in 2005 (all figures U.S.), and that double-digit pace will likely continue in years to come. 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 toward a paid placement structure from a barter and added-value model.

The majority of spending in the U.S. and abroad is derived from five key product categories: transportation & parts, apparel & accessories, food & beverage, travel & leisure, and media and entertainment.

The U.S. is by far the world's largest paid product placement market at $1.50 billion in 2005, up 48.7%, making Americans the world's fastest growing market as well. Brazil and Australia are the next two largest markets for paid placement spending at $285.3 million and $104.3 million, respectively, in 2005. 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 product placement. (Canada was not mentioned in the executive summary noted below and, frankly, MiC wasn't inclined to cough up U.S. $1,195 for the full report - so we'll just have to wonder how we rank.)

Although the share of barter and added-value arrangements is declining, these types of non-paid placements are still used often throughout the world. The overall value of the global product placement market, including the barter/exposure value of non-paid placements, grew 27.9% to $5.99 billion in 2005 and is projected to expand another 24.3% to $7.45 billion in 2006. PQ Media forecasts that global paid product placement spending will grow in the 2005-2010 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 http://www.pqmedia.com/global-product-placement-2006.html.
By Staff 
August 17, 2006

In the first global product placement study broken out by TV, film and other media, Stamford, Conn.-based PQ Media determined that $2.21 billion was spent in 2005 (all figures U.S.), and that double-digit pace will likely continue in years to come. 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 toward a paid placement structure from a barter and added-value model.

The majority of spending in the U.S. and abroad is derived from five key product categories: transportation & parts, apparel & accessories, food & beverage, travel & leisure, and media and entertainment.

The U.S. is by far the world’s largest paid product placement market at $1.50 billion in 2005, up 48.7%, making Americans the world’s fastest growing market as well. Brazil and Australia are the next two largest markets for paid placement spending at $285.3 million and $104.3 million, respectively, in 2005. 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 product placement. (Canada was not mentioned in the executive summary noted below and, frankly, MiC wasn’t inclined to cough up U.S. $1,195 for the full report – so we’ll just have to wonder how we rank.)

Although the share of barter and added-value arrangements is declining, these types of non-paid placements are still used often throughout the world. The overall value of the global product placement market, including the barter/exposure value of non-paid placements, grew 27.9% to $5.99 billion in 2005 and is projected to expand another 24.3% to $7.45 billion in 2006. PQ Media forecasts that global paid product placement spending will grow in the 2005-2010 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 http://www.pqmedia.com/global-product-placement-2006.html.