Alternative marketing booms
According to a study done by the PQ Media of Stamford, spending on branded entertainment marketing grew to an all-time high of $22.3 billion in 2007. The 14.7 percent increase above 2006 levels is part of a trend that has seen this type of marketing nearly double in the last five years.
PQ Media is a provider of media econometrics and media research.
According to PQ, the increase signifies a shift from traditional advertising to alternative marketing strategies.
Branded entertainment refers to marketing strategies that integrate products into entertainment.
The three major segments of this type of marketing are event sponsorship; product placement; and “advergaming” and “webisodes.” Advergaming is product placement within the hugely popular video gaming world. Webisodes are small, Web-based movies and shows.
According to PQ Media, branded entertainment marketing represented approximately 8 cents of every marketing services dollar spent in 2007.
“Even without an economic slowdown, there are strong secular trends driving investment from traditional advertising media to alternative marketing strategies,” said Patrick Quinn, president and CEO of PQ Media. “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 try to reach. And these trends have led to increased investment in alternative marketing tactics.”
The PQ Media Branded Entertainment Marketing Forecast that covers 2008 to 2012 says that branded entertainment marketing figures are projected to expand another 13.9 percent in 2008 to $25.41 billion, despite the sluggish economy. The forecast finds that the continued expansion comes from marketers seeking strategies and media that engage influential demographics and provide return-on-investment metrics.
The 2008 presidential race appears to be a revenue source for this type of marketing. Because 2008 has a unique political infusion, the forecast predicts a decelerated growth in 2009.