Making sure that consumers know about a specific product or service can’t be left to advertising alone. The best marketers have figured out that some potential customers will go to great lengths to avoid their messages. The next best strategy to reach these reluctant targets may be product placement.
Globally, marketers shelled out $7.39 billion on product placement. These numbers are likely to rise this year. And, the U.S. is the leading market for this activity, with 57.6% of the total spent, or a market value of about $4.26 billion.
Historically, product placement has been mostly about TV. About $2.83 billion was spent in the past year on U.S. TV product placement. Specific targets for TV include fans of reality shows as well as Hispanics. Film is another important category for the industry. Automotive marketers have been paying big money to get their latest products in front of movie fans who attend big-release films. The movie market captures $977 million in U.S. product placement marketing funds. However, recognizing the importance of online activity, marketers have been spending money on product placement on this front as well. Online product placement is the fastest-growing category in the industry and accounts for $61 million in the U.S. annually. Brands are also increasing their spending on other formats like video games.
"Technological advancements and changes in consumer behavior have caused brand marketers to design multimedia strategies to engage fast-moving, 21st century end users," said Patrick Quinn, CEO of PQ Media, the firm which published these numbers. It’s likely that product placement will play a growing role for large brand marketers in 2013 and beyond.[Source: Global Product Placement Spending Up. Pqmedia.com. 4 Dec. 2012. Web. 9 Jan. 2013]