Reports: Subscriptions, product placement, influencer spending up
Product placement spending is on the rise. That’s the word from PQ Media’s latest Global Product Placement report. Their researchers note product placement spending will increased about 14% in 2019 to reach just over $20 billion, but the COVID-19 pandemic is expected to slow that spending growth. In fact, product placements may dip a bit as marketers and brands reduce their overall ad spending in the wake of physical store closures and a general reduction of spending.
But, why spending may not increase as much as it has over the past two years, the researchers believe stay-at-home orders and a growth in work-from-home jobs will push more brands to invest in product placements. In fact, their forecast suggests that product placement spending will see double-digit growth again by 2021, with increases of more than 13%, which would nearly match the 2019 spend.
“Our research suggests that deft product placement leads to online engagement and has the ability to create emotional connections with key demographics, such as Millennials, i-Gens and m-Gens, which are more elusive, tech-savvy and averse to traditional media,” said PQ Media CEO Patrick Quinn. “As a result, paid placements have grown substantially in number and value during the past several decades because brands have become more willing to invest in skillful integration of their logos and products in storylines that will expose their assets in meaningful ways.”
Subscription services may not be new as they were in 2017, but consumers continue to be interested in monthly boxes from their favorite brands. That is a key finding from 2checkout’s latest Subscription Usage Patterns report. According to their data about 45% of consumers have at least one subscription going and just over one-quarter (28%) have between two and five subscriptions going.
“With subscriptions on the rise, and undeterred even by the COVID-19 pandemic, the survey results show a strong and unrelenting interest in the subscription model across many categories of services, and specific buyer preferences. Any company that relies on subscription sales will surely benefit from learning these findings and trend insights in order to curb churn and improve client retention going forward,” said Erich Litch, 2Checkout’s President and Chief Operating Officer.
The biggest categories for subscriptions continue to be entertainment related – services like Netflix and Spotify (64%), but about half of consumers say they’re now using subscriptions for cloud-based SaaS.
But, while subscriptions and product placement spending is expected to increase, experts believe the influencer marketing spend is on the downward slide – at least for now. According to Linqia’s new report while most marketers believe influencer marketing can help business growth (71%) none of these marketers (0%) are currently using influencer campaigns. This decrease is directly related to the pandemic, and is expected to change once restrictions are lifted and consumers begin spending again – both digitally and online.
Linqia’s data shows that 74% of marketers they surveyed say they’ll push their influencer spending back to pre-pandemic levels once quarantine orders are lifted.