Elusive Consumers Create Marketers' Needs F or Branded Entertainment
According to research released recently by PQ Media, spending on branded entertainment marketing grew 14.7% to an all-time high of $22.3 billion in 2007, nearly doubling in size over the last five years as brand marketers continue to shift budgets from traditional advertising to alternative marketing strategies which include:
This marketing strategy that integrate products into entertainment venues that provide high engagement and interactivity, represented approximately 8 cents of every marketing services dollar spent in 2007, according to PQ Media. And the market for branded entertainment is projected to expand another 13.9% in 2008 to $25.41 billion, despite slowing overall economic growth.
Patrick Quinn, President & CEO of PQ Media, said "... there are strong secular trends driving investment from traditional advertising media to alternative marketing strategies... Americans are spending more time outside their homes, online at work, communicating via wireless devices and multitasking with various media, which has created a generation of elusive consumers for brand marketers to reach... (leading) to increased investment in alternative marketing tactics."
Key trends impacting each segment of branded entertainment include:
Branded entertainment is expected to grow at a double-digit pace in 2008, driven by nearly $9 billion in event marketing spend, robust product placement spending, particularly on reality programming, at $3.5 billion, up nearly 25%, and growth in webisodes of 46%, as major networks begin to produce full-length online episodes in an effort to tap the coveted youth market.
The outlook for branded entertainment marketing through 2012, says the report, is for double-digit growth overall, despite slower economic expansion in the period. The sector is projected to grow at a 12.8% CAGR from 2007 to 2012, exceeding $40 billion.
For additional information from PQ Media, please visit them here.