Global Product-Placement Deals Rise, U.S. Ad Spend Up 11%

Globe-AA2_copy_3.Worldwide product placement deals continue to climb -- now four years running.

Advertising spending on product placement deals was 12% higher in 2012 to $8.3 billion, per PQ Media.

The research company says rapidly growing BRIC territories -- Brazil, Russia, India, and China -- as well as telenovela growth and more time-shifted viewing contributed to the rise.

PQ Media says the U.S. remains the world’s largest product placement nation, with spending up 11.4% to $4.75 billion -- coming from TV, Internet, mobile and music platforms.

China witnessed major growth -- up 27.2% $103 million, with paid placement growth in Russia and India also climbing more than 20% in 2012.

Brazil continues to be the largest BRIC market by far -- totaling $861 million, 13.4% higher from 2011. Brazil’s product-placement market is three times the size of Russia, India and China combined. In Brazil, much product placement's growth is driven by telenovelas, which is prevalent among many other Latin American countries and in the U.S. Hispanic TV market.

While viewing of first-run programs on TV is declining in favor of time-shifted video consumption through multiple media -- often to avoid traditional 30-second ads -- product placement has risen, says PQ Media. Paid product placement is more part of a multimedia strategy for marketers.

PQ Media says product placement spending in the first quarter of 2013 was pacing for the fourth straight year of accelerated growth since 2009. It was then that the global product placement market declined for the first time.



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