Study: Product-placement spending drops

6:00 AM PDT 6/29/2010 by Alex Ben Block, AP

Comments

Decrease comes after four years of double-digit growth

The impact of the economic crisis is echoing throughout show business.

Spending on product placements for TV shows, movies, the Internet, video games and other media declined in 2009 after three consecutive years of double-digit gains, according to a study released today by PQ Media.

The report, "The Media Global Branded Entertainment Marketing Forecast 2010-2014," reflects the first decrease in overall spending on branded entertainment in the U.S. after four years of double-digit growth and 35 years of consistent growth.

Total branded-entertainment marketing, including branded placements and event marketing, was down for the first time since PQ began tracking, off by 1.3% to $24.63 billion. However, the report predicts solid growth in the near future, including a 5.3% increase in total branded spending this year.

Even with last year's dip, branded entertainment did a lot better than traditional advertising, which was down 14.4% in 2009.

"Branded-entertainment marketing has emerged over the last decade as a leading alternative marketing strategy amid a rapidly changing media landscape," the report says. "The monumental changes and the speed at which they've occurred are unprecedented in the history of media."