Global product placement spending grew 12.3% in 2023 to
$29.63 billion, decelerating from the
14.3% gain posted in 2023, caused primarily by the impact of the US
writer and actor strikes, which shuttered production studios for
months and delayed releases of new TV, film, videogame and music
video content, according to new research released today by PQ
Media.
STAMFORD, Conn., July 25,
2024 /PRNewswire-PRWeb/ -- Global product placement
spending grew 12.3% in 2023 to $29.63
billion, decelerating from the 14.3% gain posted in 2023,
caused primarily by the impact of the US writer and actor strikes,
which shuttered production studios for months and delayed releases
of new TV, film, videogame and music video content, according to
new research released today by PQ Media. Product placement spending
worldwide is on pace to grow at a slightly slower 12.1% to
$32.98 billion this year, which would
mark the fourth consecutive year of double-digit growth, following
the worst decline ever in pandemic-struck 2020, according to the
10th edition of PQ Media's Global Product Placement Forecast
2024-2028.
"Product placement has grown substantially
during the past two decades because brand marketers have become
more willing to invest in the creative integration of their
products in storylines that will garner them strong brand
awareness, while creating positive brand associations."
While the US market was impacted the most by the Hollywood strikes, global markets were
affected as well, due to the increase in international partnerships
in recent years. Nevertheless, the four-year growth streak has
placed product placement on a path to end 2024 nearly double the
size it was back in 2018, as brand integration opportunities have
greatly expanded across multiple media platforms and channels.
While the overall TV platform still commanded the lion's share
of product placement spending globally at 70.1% in 2023 and movies
remain the second-largest platform (11.9%), various digital media
and recorded music channels have driven the multi-year streak of
double-digit growth – both in the overall global market and the US,
which remains the world's largest market – including social media
& blogs, influencer sites, virtual (artificial intelligence)
placements, music videos and podcasts, among others.
In the US, which accounted for 56.2% of the global market for
product placement in all media, total spending rose 11.9% in 2023
to $16.54 billion, decelerating
notably from the 15.1% growth posted in 2022. Five of the six media
platforms grew at double-digit rates, with print media being the
exception, while digital media grew the fastest at 15.1%, fueled,
in part, by the growth of artificial intelligence (AI) placement
opportunities from media companies like Amazon Prime and
NBCUniversal's Peacock, according to the new PQ Media report.
AI placements differ slightly from virtual brand integrations,
like those placed via companies like Mirriad, as AI software allows
viewers to click on integrated products and be sent to an
e-commerce site to purchase the product. However, most brands are
still hesitant to use the new AI tech because many of the product
placements are cameos (appearing in the background), rather than
brand integrations in which the actors hold the products towards
the camera and/or discuss them favorably in the dialogue. There are
also copyright issues if the original producers of the content are
not contacted in advance for permission to use an AI placement.
The biggest issue to impact the product placement market in 2023
and 2024 were the concurrent writer and actor strikes, which led to
production studios shutting down for months in the US, causing
delays in domestic and international content releases that featured
US-based actors and/or writers. In broadcast TV, for example, the
annual new episode premiums of programs with product placements for
the 2023-24 season were limited to reality shows during the
important September-to-November time period, such as "The Golden
Bachelor."
New episodes of scripted programs with product integrations were
pushed back to "mid-season" replacements in February 2024, such as "CSI: Las Vegas." In the film business, studio
shutdowns forced movies with product placements scheduled for
release in 2023, such as "Challengers," to be pushed back to 2024,
impacting the distribution of movies with product integrations
already scheduled for 2024 release, such as the sequel to "Dirty
Dancing." Production shutdowns also impacted the music video
channel and actor commitments led to delays in the release of
select videogame titles.
"Product placement has grown substantially during the past two
decades because brand marketers have become more willing to invest
in the creative integration of their products in storylines that
will garner them strong brand awareness among target consumers,
while creating positive brand associations and generating sales
lift. While these key growth drivers will continue to favor product
placement, some concerns have emerged, as expressed by PQ Media's
Global Opinion Leader Panel, that the number of placement
opportunities will decline going forward, as evidenced by the 14%
drop in the number of scripted programs produced for the 2023-24
season – only the second decline since ad-supported cable networks
began producing original programming in 2007," said PQ Media
President & CEO Patrick Quinn.
"While the strikes contributed to decrease, this downtrend was
anticipated before the strikes because streaming services and cable
nets had already begun to cancel low-performing programs, as profit
margins dwindled due to cord-cutting and streaming video
subscriptions appeared to be peaking."
Product placement in TV remains, by far, the largest media
platform category worldwide, valued at $20.62 billion in 2023. The hottest streaming TV
series are driving the double-digit growth in product placement in
the overall TV category, such as the 106 products placed in "The
Brothers Sun" on Netflix. Meanwhile, movie integrations, the second
largest platform category, generated $3.50
billion globally last year. While the number of new films
produced in North America has
increased from 333 in 2020 to 504 in 2023, this still pales in
comparison to film production prior to the 2020 pandemic, as 792
films were released in 2019. Nevertheless, 25% of the 504 films
released in 2023 featured 10 or more product placements, led by
"Gran Turismo" and "Dumb Money."
Digital media was the fastest-growing placement category in
2023, rising 15.1%, followed by films (up 13.1%), and music (up
13.0%). Brands have ratcheted up podcast integrations, such as
"Electric Easy" often opening with placements like characters
trying Bud Light. The print media and videogame categories posted
decelerated single-digit growth in 2023.
While the US accounted for well over half of product placement
spend in 2023, the rest of the world is gaining ground, with
Brazil and Mexico both exceeding $2 billion in spending, Australia investing over $1 billion, and Germany and the United Kingdom approaching $1 billion.
About the Report:
PQ Media's Global Product Placement Forecast 2024-2028, the 10th
edition of the industry's recognized performance benchmark. The
Forecast is the only source to consistently define, size, analyze
and project the growth of product placement spending in media. The
new edition has expanded to cover 6 major media platforms and 19
media channels across all top 20 global markets. Below is a
breakdown of the report's expanded coverage of media platforms and
channels:
- Television/Video – Broadcast TV, Cable TV, Streaming TV;
- Filmed Entertainment – Theatrical Films, Streaming Films;
- Digital Media – Pure-Play Digital Sites, Social Media &
Blogs, Influencer Sites, Virtual Placements;
- Videogames – Console/PC Games, Mobile Games, Internet
Games;
- Print Media – Magazines, Newspapers, Books;
- Recorded Music – Music Videos, Broadcast & Streaming Radio,
Podcasts, Lyrics
The Core PDF Report & Analysis delivers 264 slides of
exclusive market data and insights, which is enhanced by the
Deep-Dive Excel Databook that provides 5,625 datasets and over
250,000 datapoints by country, media platform and channel, covering
the 2018-2028 period with five-year forecasts, exclusive rankings
of the largest and fastest growing media platforms and global
markets, and in-depth profiles of each major country. To Download a
Free Executive Summary and Sample Datasets click:
https://www.pqmedia.com/product/global-product-placement-forecast-2024-2028/.
About PQ Media:
PQ Media delivers strategic intelligence, data and analysis to
the world's leading media, entertainment and technology
organizations through syndicated market intelligence reports,
custom drill-down research services, and on-demand strategic
consulting. PQ Media uses a proprietary econometric methodology to
define, segment, size, analyze and project the growth of several
hundred traditional, digital and alternative media by country,
platform, channel and demographic. PQ Media also publishes the
annual Global Media Forecast Series 2024 (10th edition), with each
report covering one of the three aforementioned industry KPIs –
Advertising & Marketing Spending; Consumer Media Usage &
Exposure; and Consumer Spending on Media Content &
Technology.
Media Contact
Patrick Quinn, PQ Media, 1
2039215249, pquinn@pqmedia.com, https://www.pqmedia.com
Leo Kivijarv, PQ Media, 1
2032737081, lkivijarv@pqmedia.com, https://www.pqmedia.com
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