Global product placement spending grew 12.3% to $29.63 billion in 2023, according to research from PQ Media.
This is lower than the 14.3% gain posted in 2023, due to mainly to 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.
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 in pandemic-struck 2020, according to the 2024-2028 PQ Media’s global product placement forecast.
Overall TV still commands the lion’s share of product placement spending globally at 70.1% in 2023 and movies remain the second-largest platform (11.9%).
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 more than $1 billion, and Germany and the United Kingdom approaching $1 billion.
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.
PQ Media president and CEO Patrick Quinn said product placement has grown substantially because brand marketers have become more willing to invest in the creative integration of their products.
"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,” Quinn said
“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.”
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