Article in AdAge looking at recent studies on the future of Branded Entertainment. Since it is a reg. req. website here are some highlights:
“The branded-entertainment marketing sector is expected to continue seeing double-digit growth through to 2012 despite a slowing economy, according to PQ Media. By shifting their ad dollars to alternative channels, more marketers will seek to maximize their value in the face of faltering traditional media and elusive audiences.
Branded entertainment, which covers event sponsorship and marketing, paid product placements, and advergaming and webisodes, has seen spending nearly double since 2002 to an all-time high of $22.3 billion in 2007, making it one of the fastest growing segments of the $254 billion marketing services sector. Spending in the category is expected to reach $40 billion by 2012, according to PQ Media’s “Branded Entertainment Marketing Forecast: 2008-2012,” which was released Feb. 12.
“The overall trend is movement away from traditional advertising — that is to say in broadcast television, radio, etc. They are all experiencing low single-digit growth, and with things like the writers strike, brands have definitely been looking elsewhere,” says Patrick Quinn, president-CEO, PQ Media. “A lot of these alternative mediums are entertaining by nature, and therefore create powerful impressions on consumers. Brand recall on [them] has been much higher than the traditional 30-second spot. In the long run, they will come to play a more important role.”
But advergaming and webisodes remain at the forefront of marketing efforts to reach the 18 to 34-year-old demographic, and showed the largest growth in PQ Media’s survey: The segment grew 34.8% to $217 million in 2007. “Marketers are trying to reach a demographic that is digitally multitasking and exposed to more media than in the past,” Mr. Quinn said. “It’s also a demographic that consumes 48% of its media outside the home and on the go. A lot of heat and focus is here because of that.”
And the heat is on: PQ expects spending on webisodes in particular to increase by as much as 46% in 2008 as the major broadcast networks deploy full-length online episodes to tap into the youth market. Despite recessionary fears, PQ projects 2008 event sponsorship and marketing spending to reach $25.4 billion (up 13.9%), and product placement, especially with the influx of reality TV shows, to reach $3.5 billion (up nearly 25%).”
None of this is surprising, but it sure is encouraging for the areas I am currently seeking to grow for our company.