February 15, 2008

Branded Entertainment Head Turner

PQ Media Branded Entertainment Marketing Forecast: 2008-2012: 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, such as product placement.

I just love Patrick Quinn and his research team from Stamford. Every February, for the last five years he's given us these fantastic and deeply insightful analysis reports on our industry.

This year, the wake-up call continues, albeit in the U.S, with branded entertainment expected to grow at a double-digit pace in 2008, driven by nearly $9 billion in event marketing, robust product placement spending, particularly on reality programming, at $3.5 billion, up nearly 25%, and here's a no brainer - growth in webisodes of 46%, as major networks begin to produce full-length online episodes to tap the youth market.

Although in-game advertising and webisodes, represent the smallest branded entertainment segment, they are afterall the new kids on the block, they also just happen to be the fastest growing segment, climbing at a 51.7% CAGR from 2002 to 2007.

Paid product placement spending grew 33.7% to $2.90 billion in 2007, and at a compound annual growth rate (CAGR) of 40.8% from 2002 to 2007.

Overall, the outlook for branded entertainment marketing through to 2012 is for double-digit growth.

Beep-beep! Oh, there's my ride. gotta run.

- happy valentine's to bluegrass at Fontainebleau

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