After receding by billions of dollars in 2020, U.S. and global product placement spending rebounded at double-digit rates in 2021 and is forecast to do so again this year, according to the Global Product Placement Forecast being released today by media economists PQ Media.
“Paid placements have grown substantially in number and value during the past several decades because brands have become more willing to invest in the creative integration of their logos and products in storylines that expose their assets in meaningful ways," says PQ President-CEO Patrick Quinn, adding: "And the strong desire to gain brand awareness among target consumers, create positive brand associations and generate sales lift will continue to favor product placement in the post-pandemic era.”
PQ's revised forecast estimates product placement spending fell nearly 8% in the U.S. and nearly 5% worldwide in 2020, as the ad industry went into a recession caused by the COVID-19 pandemic.
After rising 12.3% worldwide in 2021, it is projected to expand 14.3% to $26.2 billion this year.
In the U.S., it rose 13.2% in 2021 and is forecast to expand 15.1% to $14.8 billion this year.
While TV and films remain the largest media categories for product placement by marketers, newer digital media, including video streaming services, are the fastest growing ones.
"While leading subscription video streamers don’t sell traditional ad spots on their respective services, the number of product placements in their content offerings has soared in recent years," PQ's report notes, adding: "Despite the short-term challenge of the pandemic, plot integrations have become more common and the number of original broadcast, cable and streaming TV programs has expanded greatly, reaching 559 in 2022, more than double the number of shows in 2011."