Value of Product Placements in ``Other'' Media, Including Magazines, Newspapers, Videogames, Internet, Recorded Music, Consumer Books and Radio, is Projected to Grow 18.1% to $384.9 Million in 2005

STAMFORD, Conn.--(BUSINESS WIRE)--July 27, 2005--While more than 90% of product placement spending is in television and films, savvy marketers are also using other media, such as magazines, newspapers, videogames, the Internet, recorded music, consumer books and radio, to reach target audiences. The increasing use of other media product placements is projected to drive up the value of this sector 18.1% in 2005 to $384.9 million, according to exclusive research released today by PQ Media, a custom media research firm.

The strong growth of product placement spending in "other media" is being fueled mainly by solid expansion in videogames, the Internet and recorded music, although magazines, newspapers, consumer books and radio are also expected to post double-digit growth in 2005. Videogames is projected to be the fastest-growing other media segment this year, surging 22.2% to $40.4 million, according to PQ Media's Product Placement Spending in Media 2005. The value of Internet placements is forecast to grow 21.8% to $35.0 million, while the value of recorded music placements will increase 19.2% to $30.4 million. Meanwhile, the value of product placements in magazines--the largest other media segment--is projected to expand 17.5% to $160.9 million in 2005, while the value of newspaper placements will grow 16.9% to $65.0 million, consumer book placements will rise 12.7% to $26.6 million and radio placements will increase 15.1% to $25.8 million.

“As a result, alternative marketing is on the rise, and marketers are using product placements in other media to reach target demographics and strengthen return on investment.”

"Advertisers and marketers are scrambling to compete for consumers' time and money in this era of audience fragmentation, advertising clutter, media multitasking and ad-skipping technology," said Patrick Quinn, President of PQ Media. "As a result, alternative marketing is on the rise, and marketers are using product placements in other media to reach target demographics and strengthen return on investment."

The double-digit growth of other media product placements in 2005 follows another year of strong expansion in 2004, when the aggregate value of other media placements jumped 19.9% to $325.8 million, according to PQ Media, as marketers wary of ad-skipping technologies targeted more of their marketing budgets at media that attract the elusive 18- to 34-year-old demographic. The other media sector grew at a compound annual rate of 9.2% from 1974 to 2004, and increased 11.7% on a compound annual basis in the 1999-2004 period, propelled by an increase in paid placements, larger placement deals and deeper penetration of digital video recorders. The other media sector will account for 9.1% of the value of the overall product placement market in 2005, including TV and films, compared with only 1.3% in 1974, an increase attributable primarily to the tremendous growth of the videogame and Internet segments.

PQ Media projects the value of product placements in other media will grow at a compound annual rate of 12.9% from 2004 to 2009, reaching $598.5 million, spurred by the double-digit growth of placements in videogames (16.4%), the Internet (15.6%), recorded music (14.5%), magazines (12.4%) and newspapers (11.6%).

An executive summary of Product Placement Spending in Media 2005 is available at the following link: http://www.pqmedia.com/product-placement-spending-in-media.html. PQ Media is a custom media research firm that provides clients with exclusive strategic consulting and market research services. PQ Media is located at Two Stamford Landing, Suite 100, Stamford, CT 06902. Phone is 203-921-0368; fax, 203- 921-0367; Web, www.pqmedia.com; E-mail, [e-mail].