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BizReport : Advertising archives : July 01, 2010

Forecast: Online product placement to outpace television

Product placement. It's not just for primetime television any longer. According to a new forecast released by PQ Media product placement on the Internet grew by just over 11% in 2009 to reach $40 million; this while the overall product placement market declined by nearly 3%. Over the next four years online product placements are now expected to lead the category.

by Kristina Knight

In 2009 the overall product placement market declined to just over $3.6 billion. In 2010 online product placements are expected to expand by 15% to reach about $46 million. The PQ Media Global Branded Entertainment Marketing Forecast 2010 - 2014 predicts that between 2010 and 2014 product placements will increase by about 5% overall. The compounding growth averages per year are expected to reach just over 9% through 2014.

If the growth of online product placements continues as it did in 2009 it will lead the category, ousting television as the main arena. Why the decline in television and movie placements? Because the industry as a whole is changing. Rather than looking at product placements as 'added value' - for example a prime character using a Swiffer sweeper - the trend now is to pay for placements with more direct calls to action. That character who, in the past, pushed the Swiffer sweeper around might now mention the name, creating a kind of mini-commercial about the product.

Why are brands doing this seemingly overt type of advertising? Because consumers are skipping over many traditional commercials thanks to DVR and TiVo devices. By recording a show the consumer can watch when he or she wants to - and that may be days later. When watching a recording, the consumer would rather skip over commercials than watch them, so paying for enhanced product placements makes sense to the advertiser.

Tags: advertising forecast, online advertising, online product placement, PQMedia, product placement

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