Global Product Placement Spending to Hit $3.07 Billion

STAMFORD, August 16:
Global paid product placement spending in TV, film and other media is expected
to climb 38.8 percent to $3.07 billion in 2006, according to a study released
today by the Connecticut-based research firm PQ Media.

Global paid product
placement spending was up 42.2 percent to $2.21 billion in 2005 last year,
according to the PQ Media Global Product Placement Forecast 2006.

“Product placement has
evolved from a novel marketing tactic to a key marketing strategy on a global
scale, as brand marketers seek more effective methods to make important
emotional connections with consumers," said Patrick Quinn, the president
of PQ Media. "This trend is significant in that there is a new media order
emerging worldwide in which fear of ad-skipping technology, doubts about
traditional advertising's effectiveness, and declining government media
subsidies have fueled a dramatic increase in the value of seamless brand
integration."

The U.S. leads the product
placement market, accounting for $1.5 billion of global spending last year, a
48.7 percent gain on 2004. Brazil and Australia are the next two largest
markets for paid placement spending at $285.3 million and $104.3 million,
respectively, in 2005. France ranks fourth, followed by Japan.

The majority of spending
is from five key product categories: transportation & parts, apparel &
accessories, food & beverage, travel & leisure, and media &
entertainment.

PQ Media forecasts that
global paid product placement spending will grow at a compound annual rate of
27.9 percent in the 2005-2010 period to $7.55 billion.