Global paid product placement spending surged 42.2 percent to $2.21 billion in 2005 with double-digit growth expected to continue in 2006 and beyond, as brand marketers scramble to effectively engage consumers worldwide, according to research released today by PQ Media, a custom media research firm.

Global paid product placement spending in TV, film and other media, including the internet, is expected to climb another 38.8 percent to $3.07 billion in 2006, according to the PQ Media Global Product Placement Forecast 2006, writes MediaBuyerPlanner.

Global paid product placement spending will grow at a compound annual growth rate (CAGR) of 27.9 percent in the 2005-2010 period, reaching $7.55 billion, as product placement growth continues to significantly outpace that of traditional advertising and marketing. The overall value of the worldwide product placement market, including the barter/exposure value of non-paid placements, will increase at an 18.4 percent CAGR, to $13.96 billion in 2010.

The U.S. is by far the world's largest paid product placement market at $1.50 billion in 2005, up 48.7 percent, making the U.S. the world's fastest-growing market as well. Brazil and Australia are the next two largest markets at $285.3 million and $104.3 million, respectively, in 2005. On the strength of its paid film placement market, France ranks fourth, followed by Japan.

While the markets in the Americas and Asia tend to be more freewheeling, with regulations vague or nonexistent in some cases, the transition is slower in Europe because of stricter rules governing the use of product placement. But PQ predicts that this will change by yearend 2007, when the EU is expected to liberalize regulation.

The majority of spending in the U.S. and abroad comes from five key product categories: transportation & parts, apparel & accessories, food & beverage, travel & leisure, and media & entertainment.

Although the share of barter and added-value arrangements is declining, these types of nonpaid placements are still used. To determine the value of nonpaid placements, PQ Media used the iTVX Q-Ratio. The overall value of the global product placement market, including the barter/exposure value of non-paid placements, grew 27.9 percent to $5.99 billion in 2005, and is projected to expand another 24.3 percent to $7.45 billion in 2006.