Are marketers shortchanging product placement’s reach?

Product placement is expected to see robust growth in coming years as audiences, particularly younger ones, ignore traditional advertising.

New research from PQ Media finds brands investing in product placement to reach younger consumers who are “more elusive, tech-savvy and averse to traditional media.”

A Sharethrough study found that 66 percent of overall TV viewers don’t actively watch commercials.

PQ Media identified other factors lifting global product placement spending ahead 12.3 percent to $22.93 billion in 2021, with expected growth of 14.3 percent in 2022.

Drivers include the proliferation of shows and movies being produced to support Netflix, Amazon Prime Video, Hulu, Apple TV and other streaming channels as well as opportunities with new mediums, including digital media (i.e., social media, influencer sites).

Virtual placement has been cited as a potential breakthrough. In May, Amazon introduced an AI-driven tool that enables producers to add, adjust or even switch out one brand for another in post-production.

PQ Media’s study also cited the “emotional connections” product placement can bring in linking a brand to a beloved character. Some notable private-placement successes include Reese’s Pieces in “E.T.,” Eggo Waffles in “Stranger Things,” and FedEx and Wilson in “Castaway.”

Challenges include making a product placement fit the narrative of the storyline and avoiding looking like blatant advertising, although brand integrations have long been improving. Recent research by Sortlist revealed that, on average, customers are being sold 12.61 products per movie without even noticing.

Another complication is that the majority of product placement in film and television is still done “quid-pro-quo,” according to The New York Times. For instance, cases of water may be donated to a set in hopes that one bottle appears in a scene.

The PQ Media study said paid placement “has grown substantially in number and value during the past several decades.”

Speaking to specialtyfood.com last year, Jessica Cohen, founder of a product placement agency, said paid placement gives a brand more control over how long their product is on screen and how it’s used. She added, “Sometimes it can seem forced, and it can be expensive, costing anywhere from $100,000 to $250,000 per show. However, they are effective.”

• Global Product Placement Spend Surged 12.3% in 2021, After Worst Decline in Pandemic-Struck 2020; Spend to Grow at Faster 14.3% in 2022, Fueled By Digital, TV, Music – PQ Media
• Anatomy of a Product Placement – The New York Times
• How the Right Kind of Product Placement Can Elevate Your Brand Message – Adweek
• Product Placement Power – Sortlist
• New Research: Understanding Consumer Behaviors During TV Commercial Breaks – Sharethrough
• What to Know About Product Placement in Film and TV – Specialty Food