Product placement revenues are up 13.2% so far this year in the U.S., fueled by growth of TV, digital and music integrations.
PQ Media estimates that product placements were worth $6.01 billion, up 12.8% from the previous year, the fifth straight year of growth. PQ Media projects that product placement revenue will reach $11.44 billion in 2019.
Time shifting is contributing to the increase in product placement because viewers can use DVRs to avoid 30-second spots.
Integrations in scripted TV shows on broadcast and cable networks were worth $4 billion, or about two-thirds of product placement revenue, PQ Media said. Integrations are often designed to air close to a commercial pod featuring a spot from the advertisers, a strategy designed to boost engagement.
In its report, PQ Media pointed to an episode of Modern Family that revolved around the family using Apple products.
“There is no advertising, marketing or consumer-driven media tactic that can match the durability, consistency or growth trajectory of product placement,” said Patrick Quinn, CEO & CCO, PQ Media. “Product placement has remained a steady component of successful multimedia strategies for more than a century because well-executed brand integrations time and again have demonstrated the ability to engage audiences and create strong emotional connections.”
The U.S. is the largest product placement market in the world. With Brazil and Mexico added in, the Americas account for 80% of global product placement, PQ Media said.
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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