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Branded Entertainment Marketing expands by 14.7% in 2007

pq_media.gifResearch published by PQ Media has showed that despite a slowing economy, branded entertainment marketing has continued to expand. During 2007 it grew by 14.7% to reach $22.3 billion. This means that over the last 5 years, this market segment has almost doubled as brand advertisers shift spending away from more traditional channels.

The report also predicts that branded entertainment marketing will grow by another 13.9% in 2008 to reach $25.41 billion. This is due to the fact that brand marketers are seeking more and more ways to engage the youth demographic, and that in US election year, political campaign spending on alternative media will be very important.

Branded entertainment refers to marketing strategies that integrate products into entertainment venues that typically provide high engagement and interactivity. Branded entertainment marketing includes three major segments: event sponsorship and marketing; product placement; and advergaming and webisodes. All of these segments can be implemented using mobile – for example blue tooth sponsoring at events or ad-funded mobile gaming (see post on 20th Century Fox).

“Even without an economic slowdown, there are strong secular trends driving investment from traditional advertising media to alternative marketing strategies,” said Patrick Quinn, President & 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 key trends affecting each segment of branded entertainment are:

  • Spending on event sponsorship and marketing, which is the largest segment of branded entertainment, rose by 12.2 % reaching $19.18 billion.
  • Paid product placement rose to $2.9 billion at a compound annual growth rate (CAGR) of 40.8% over the last 5 years.
  • Advergaming and webisodes, which is the smallest segment of branded entertainment, has grown by 34.8% reaching $217 million. One of the main reasons for this increase is the efforts made by marketers to reach the 18 to 34 demographics who are watching less TV. Advergaming and webisodes also showed the biggest CAGR (51.7%) over the last 5 years.

Despite remaining strong, branded entertainment is expected to decelerate slightly in 2009 due to a slowdown in economic growth, maturing markets and the absence of a major political campaign.

See the full release here.

06.04.2008    Tags: ,
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