UK paid for product placement market estimated to be £9.7m to £29.1m
The UK ‘paid for’ product placement market is valued at £9.7 million to £29.1 million, according to NMG Product Placement.
“NMG’s research reconfirms Ofcom’s initial estimates and those of the product placement industry as a whole,” John Barnard, chairman of NMG, said.
“Through this research NMG gained an intimate understanding as to why commercial TV is struggling to sell deals – whilst paradoxically at the same time carrying product placements contained in Hollywood movies, which they would not be allowed to include, and charge for, in their own productions.”
In January 2012 NMG recorded and analysed 85 hours of the programmes most likely to contain ‘paid for’ placement opportunities from the following commercial TV channels: ITV1, C4, E4, C5, MTV UK and Sky 1. Click here to see the full report.
Your Comments
Our research sources are stated in the study.
We included data from submissions made to Ofcom by Big Film Group and the Association of Entertainment Marketing Agencies, (representing the UK product placement industry), taken from the DCMS/Ofcom Consultation on Product Placement on Television – Summary of Submissions’ March 2010 at 2.2.14:
“The Association of Entertainment Marketing Agencies suggested that it would be well below £5m in the first year and could reach £28m in the long term, based on the US product placement market’s revenue per head of population, while the Big Film Group thought £10-25m in 5 years time would be a reasonable estimate.”
We further verified our research sources, inter alia, by reference to the 2011 ‘IHS Screen Digest Report on Product Placement in Europe’, probably one of the most definitive product placement study undertaken in recent months.
See: http://www.isuppli.com/Media-Research/Pages/Product-Placement-in-Europe.aspx
I agree with Graeme’s comments concerning the past 12 months which have, of course, been widely published and discussed in the media
However, NMG’s Report Study does not deal with the past 12 months. The report’s terms of reference are clearly set out therein and NMG estimates the potential future market size that may be attainable under the constraints of existing Ofcom Guidelines.
Our opinion, which as the leading company in the product placement industry may be of interest, is that the paid for placement marketplace is worth less than a £1 million, I am not sure who the New Media Group have spoken to “in the Industry” but those that I have spoken to agree with our estimates… Don’t you just love research.
(A Broadcast article this week also claims that product placement has failed to hit the £1 million mark: “Experts believe there have been just 10 standalone product placement deals, generating less than £1 million in total, in the 12 months since the new revenue stream was made legal in the UK.”)