Warc Blog

Global product placement spend rises

17 April 2013
STAMFORD: Global spending on product placement rose by 11.7% to $8.25bn last year, helped by a more structured approach to this strategy in emerging markets, according to PQ Media.

The data provider's latest Global Product Placement Spending Forecast reported that the fastest growth was seen in China, up by 27.2% to $103m in 2012, with both the Russian and Indian markets also recording expansions of more than 20%.

Brazil grew more slowly than the other BRIC nations at just 13.4%, but with spending of $861m it was three times the size of the others three markets combined, and ranked second only to the US.

In Brazil's case, the telenovela was a key driver of growth, and this genre was also important in the rest of Latin America and the US Hispanic market.

Product placement has benefited from a rise in time-shifted video consumption in all markets, as advertisers seek new ways to reach viewers avoiding traditional ads.

One consequence of this, the report noted, has been the emergence of product placement agencies in BRIC countries to better integrate brands into TV programs and films.

"While headlines often tout the rapid growth of digital advertising and marketing via the internet and mobile devices, global brands continue to expand their investments in a media tactic that has been around for over 100 years," said Patrick Quinn, CEO, PQ Media.

"Marketers are compelled to spend their money on the most effective ways to engage more elusive, multitasking audiences using digital technology to consume content more often and to view advertising less frequently," he added.

TV was the largest channel for product placements, attracting $5.37bn in 2012, a rise of 12.9% year on year. Expenditure on film placements rose by 8.1% in the same period to $1.66bn, driven by growth in regional markets, particularly China.

Other categories also expanded rapidly from a low base. Online and mobile was up by 31.4% to $247m, while music integrations, covering placement in videos or inclusion in lyrics, increased by 22.7%.

PQ Media predicted continued growth in 2013, with spending expected to rise 11.9%, thanks to sustained expansion in the BRICs and elsewhere – notably Australia, Mexico and South Korea – as well as more relaxed regulation in European and Asian markets.


Data sourced from PQ Media, additional content by Warc staff

 
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