Global Paid Product Placement Spending Surpasses $2 billion in 2005

Global paid product placement spending surged 42.2% to $2.21 billion in 2005 with double-digit growth expected to continue in 2006 and beyond, according to PQ Media, a custom media research firm.

Global paid product placement spending in TV, film and other media is expected to climb another 38.8% to $3.07 billion in 2006, driven by the continued shift in the world's leading markets toward a paid placement structure from a barter and added-value model, according to the PQ Media Global Product Placement Forecast 2006

Key Highlights from PQ Media Report:

  • The US is by far the world's largest and fastest growing paid product placement market at $1.50 billion in 2005, up 48.7%. Brazil and Australia are the next two largest markets for paid placement spending at $285.3 million and $104.3 million, respectively, in 2005. France ranks fourth, followed by Japan. 
  • The majority of spending in the US and abroad is derived from five key product categories: transportation & parts, apparel & accessories, food & beverage, travel & leisure, and media & entertainment.
  • The overall value of the global product placement market, including the barter/exposure value of non-paid placements, grew 27.9% to $5.99 billion in 2005, and is projected to expand another 24.3% to $7.45 billion in 2006. 

PQ Media forecasts that global paid product placement spending will grow at a compound annual rate of 27.9% in the 2005-2010 period to $7.55 billion. The overall value of the worldwide product placement market, including the barter/exposure value of non-paid placements, will increase 18.4% compounded annually to $13.96 billion in 2010.

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