The growth of the non-paid part of the product-placement business will cool, too. This is the biggest part of the industry, including barter and other valued-added deals. According to the survey, it's estimated to be just 12.5% in 2007, registering a value of $4.95 billion. By comparison, the value was $4.4 billion in 2006.
Still, the survey says product placement continues to be robust and will have a strong future. One reason: European growth has been fueled by the relaxation of rules governing placements through a "Television without Frontiers" initiative that has largely affected the U.K., Spain and Italy.
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The U.S. continues to be the dominant country for paid-product placement business--representing more than 66% of the worldwide business. Next year, PQ projects the U.S. will pull in $2.90 billion. Countries that will follow the U.S. in terms of size include Brazil, Mexico, Australia and Japan. China will be the world's fastest-growing country, projected to grow by 34.5%. The next big increases will come from the U.S., Italy, India and Canada.
TV is still the biggest medium to place products, accounting for almost three-quarters of the entire business. It had global spending of $2.40 billion in 2006. TV is expected to grow just under 34% in 2007. For marketers, it's an avenue that can circumvent DVR-enabled ad skipping. In addition, there is an increasing belief that the tactic can sometimes be more effective than the 40-year-old 30-second spot.
By contrast, product placements in film are less than half that of TV, with movies pulling $885.1 million in 2006--and are expected to grow at a slower place than TV, just over 20% for this year.
Collectively, other platforms to place products account for just 2% of the business. This includes video games and the Internet, with most targeted at the young 18-34 demographic. But PQ says this area will show marked growth in 2007, exceeding 30%. The findings come from the PQ Media Global Product Placement Forecast Series 2006-2010: Country-by-Country Analysis.