• June 11, 2002

Expect this week’s Licensing 2002 show in New York to spotlight the importance of brand extension as a marketing tool. Brands such as Coca-Cola and Revlon have already made key announcements on expanding their sales of licensed goods. And media properties such as Better Home and Gardens and A&E Networks will try to be more aggressive in the licensing arena to build brand awareness and generate lost ad revenue.

According to Diane Stone, general manager of Advanstar Communications, which produces the show, 138 new exhibitors are exhibiting at this year’s show. They include Warner Bros., Sony, Universal Studios, Disney, MGM, 4 Kids, Entertainment, A&E Television Networks, Comedy Central, Discovery, Nickelodeon and Sesame Workshop. Advanstar says licensed sales of food-based products, such as Kellogg’s and M&M/Mars, is up over the past year to $12.4 billion. “The category is one of the fastest growing in the business of consumer product sales and marketing and some call it the latest uncharted territory in licensing,” according to an Advanstar report

Advanstar also claims that a substantial number of magazine publishers are looking to licensing to “generate new streams of revenue built on the brand equity that has been built through years and years of loyal readership.” Primedia alone reports that in two years, comprehensive licensing programs have generated more than $100 million.