Global product placement spending increased 11.7% to $8.25 billion in 2012, as fast-growing BRICs, dynamic telenovelas, increased DVR penetration and relaxed regulations drove marketers to up their investments in branded entertainment for the third consecutive year, according to PQ Media. Product placement spending in the first quarter of 2013 was pacing for the fourth straight year of accelerated growth since 2009, when the global market declined for the first time ever.[PRWeb press release] — Global product placement spending increased 11.7% to $8.25 billion in 2012, as fast-growing BRICs, dynamic telenovelas and increased DVR penetration drove marketers to up their investments in branded entertainment for the third consecutive year, according to PQ Media. Product placement spending in the first quarter of 2013 was pacing for the fourth straight year of accelerated growth since 2009, when the global market declined for the first time ever.
BRIC countries fueled product placement growth in 2012, led by China’s 27.2% surge to $103 million, as global brands scrambled to market new products to Chinese consumers through a sizzling media and entertainment industry, according to the PQ Media Global Product Placement Spending Forecast 2012-2016. While paid placement growth in Russia and India also exceeded 20% in 2012, Brazil was the largest BRIC market by far, with spending of $861 million, up 13.4% from 2011. Brazil’s product placement market is three times the size of Russia, India and China combined, and ranks second only to the US worldwide. Brazil’s consistent growth is being driven largely by a vibrant telenovela genre, a key driver of product placement growth throughout Latin America and in the US Hispanic TV market.
The US remained the world’s largest product placement market by a wide margin in 2012, with spending up 11.4% to $4.75 billion, fueled by strong growth in the TV, internet, mobile and music categories. Mexico ranked third behind Brazil with spending of $674 million in 2012, followed by Australia, France, Japan and the UK, all of which surpassed $100 million in spending for the year, according to the PQ Media Global Product Placement Spending Forecast 2012-2016. In addition to shifts in media consumption habits and new technology disruption, European and Asian markets further benefited from improved regulatory environments, as restrictions on product placements were relaxed in recent years.
“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.”
While TV remains the most consumed medium worldwide, viewing of first-run programs on conventional TV is declining in favor of time-shifted video consumption through multiple media, often to avoid traditional 30-second ads. As a result, product placement has strengthened its position in the multimedia strategy mix. Another key driver of growth is the increased sophistication used to integrate brands into TV programs and movies. This is especially true in the BRICs, where product placements for years were executed haphazardly, often at the request of a brand to its agency. More recently, product placement agencies have emerged in these countries to work more closely with media producers to integrate brands effectively into scripts, similar to what has been done in the US for years.
The fastest-growing media platforms for product placement are the internet and mobile devices, and the BRIC markets are leaders in tech-savvy audiences seeking original programming on digital devices. The vast majority of paid media integrations worldwide take place in TV and film. Global spending on brand placements in TV, the largest media category, increased 12.9% to $5.37 billion in 2012, according to PQ Media. Growth in paid TV placements was fueled by the dynamic telenovela genre in Brazil, Mexico and the US, as well as marketers taking advantage of looser restrictions in Europe and Asia, while producers more often demanded financial compensation.
Meanwhile, global spending on movie placements rose 8.1% to $1.66 billion in 2012, driven by faster growth in each of the leading regional markets, particularly China, which surpassed Japan as the world’s second-largest film market during the year. The online & mobile category grew the fastest in 2012, rising 31.4% to $247 million, while music integrations were up 22.7%, according to the PQ Media Global Product Placement Spending Forecast 2012-2016.
PQ Media projects global product placement spending to grow 11.9% in 2013, spurred by the expanding BRIC markets, newly unleashed European TV markets, and accelerated growth in Australia, Mexico and South Korea.
PQ Media is a leading provider of actionable econometric data and analytics that drive strategic growth objectives for global media, entertainment and technology companies. The PQ Media Global Product Placement Spending Forecast 2012-2016 (5th edition) is the branded entertainment industry’s benchmark for spending, growth and trends data, covering the four major regions, 15 leading markets, and each media platform, including TV, film, videogames, internet, mobile and music, among others. To download a table of contents and executive summary, or to purchase the report, click through the hyperlink above.