70% of Brands Are Investing More into Product Placements

One of the prime concerns for brands these days is figuring out where they want to put their ad dollars because of the fact that this is the sort of thing that could potentially end up determining their financial success. It turns out that the vast majority of brands, or 70% to be precise, are diverting 10% of their media budgets towards product placements, as highlighted by BenLabs. These involve their products being shown on film and television, something that has been known to generate more sales than might have been the case otherwise.

With all of that having been said and now out of the way, it is important to note that 75% of consumers based in the US claim that they have looked for a product after seeing it in a film or a TV show. 57% went so far as to make a purchase, so getting eyes on your products in some form of content can certainly be an excellent way to drive up revenue rates especially in a tough financial quarter.

PQ media reports that the total amount spent on product placements will reach a whopping $41.4 billion by 2026. Over half of this, $23.5 billion, will come from the US alone. The US already saw a hefty $15 billion in product placement investments in 2022, and this number is likely going to rise by a large margin over the next few years.

Around 75% of all of these product placements are going to go towards television, with movies getting 15% and digital media currently only getting 4% with all things having been considered and taken into account. It will be interesting to see how this shifts the landscape of global media, since digital media platforms will likely want to incentivize more product placements in order to reap the revenue benefits that they can create.

The rise of product placements might also mean that the dominance of digital marketing is no longer as absolute. Indeed, digital marketing platforms themselves might want to get a slice of the product placement pie, and platforms like YouTube are well positioned for it.

Read next: Global Ad Spends to Cross Trillion Dollar Mark by 2024
by Zia Muhammad via Digital Information World