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New PQ Media Report Reveals U.S. Branded Entertainment Spending on Consumer Events & Product Placement is on Pace to Grow in 2010
[July 02, 2010]

New PQ Media Report Reveals U.S. Branded Entertainment Spending on Consumer Events & Product Placement is on Pace to Grow in 2010


Jul 02, 2010 (Close-Up Media via COMTEX) -- PQ Media, a provider of media econometrics, announced the release of new research it said show total U.S. branded entertainment marketing spending, including consumer event sponsorships, event marketing and paid product placement in various media, dipped 1.3 percent in 2009 to $24.63 billion, but is on pace to generate solid growth in 2010 and beyond.



The decline in spending on U.S. branded entertainment marked the first decrease since PQ Media began tracking the industry in 1975, and followed four consecutive years of double-digit growth and 35 years of consistent growth, according to the PQ Media Global Branded Entertainment Marketing Forecast 2010-2014. U.S. branded entertainment spending, however, increased at a compound annual growth rate (CAGR) of 10.6 percent from 2004 to 2009 and the U.S. remained the world's biggest market, accounting for 45.1 percent of total spending in 2009.

According to a release, the branded entertainment industry was driven down by the massive economic recession in 2009, but it was much less affected than traditional advertising and marketing spending, which was down 14.4 percent for the year. And the industry is poised to resume growth over the next several years, according to PQ Media. Branded entertainment marketing has emerged over the last decade as an alternative marketing strategy amid a changing media landscape.


"The cascade of new media platforms and technologies have led to significant changes in consumer media use, which has forced brands to rethink long-held beliefs about effective strategies to reach target audiences," said Patrick Quinn, CEO of PQ Media. "The availability of content through the internet, mobile devices and social networks, the difficulty of reaching more elusive target consumers, and the transformation of personal communications due to these developments have made it more important than ever for brands to invest in strategies to engage target consumers in captive locations for extended periods of time through the power of emotional connections." U.S. consumer events spending, including event sponsorship and event marketing, declined 1.1 percent in 2009 to $21.02 billion, following four consecutive years of double-digit growth. Total consumer event spending was also driven down by the economic recession, which led brands to cut marketing budgets and intensely examine their spending across the board while demanding better ROI. Total consumer events spending increased at a CAGR of 8.7 percent from 2004 to 2009.

Paid product placement spending - in television, films, internet, videogames and other media - declined in 2009 for the first time in tracked history, as spending decreased 2.8 percent to $3.61 billion due to severe reductions in brand marketers' budgets resulting from the difficult economic environment. Strong double-digit gains from 2005 through 2008, however, drove a 27.1 percent CAGR for paid placement spending in the 2004-2009 period. While PQ Media also tracks the total value of U.S. product placements, including paid and non-paid placements, the exposure value of non-paid placements is not included in the total U.S. or global branded entertainment spending figures.

"PQ Media believes the secular shift to paid placements from the non-paid model will continue in the forecast period, as changing consumer behaviors, new technology and the increased penetration of DVRs drives up the value of branded entertainment marketing strategies," Quinn said.

Total U.S. branded entertainment marketing spending, including consumer events and paid product placement in media, is projected to increase 5.3 percent in 2010 and accelerate during the forecast period at a 9.2 percent CAGR through 2014. U.S. consumer events will remain the biggest segment, while paid product placement will be the fastest growing in the 2009-2014 period, according to the PQ Media Global Branded Entertainment Marketing Forecast 2010-2014.

Global branded entertainment spending will continue to grow at accelerating rates in the forecast period as well, posting a 9.1 percent CAGR from 2009 to 2014, with consumer events remaining the biggest segment and paid product placement the fastest growing. The U.S. will remain the biggest branded entertainment market in the world through 2014 with 45.2 percent of total spending, but China will be the fastest growing with a 19.1 percent CAGR.

The full report provides many examples of branded entertainment marketing strategies including, among others, Lady Gaga's 9.5-minute video for Telephone, which includes 10 product placements and generated more than 4 million views in its first 24 hours, as well as her video for Bad Romance, which also includes multiple placements and has been viewed over 230 million times. Meanwhile, many brands have pursued eco-friendly approaches to event sponsorships. At the Vancouver Olympics, Coca-Cola promoted a "zero waste, carbon neutral" program, which included compostable coffee cups and lids, hybrid vehicles to transport its products and staff uniforms made from recycled bottles.

More Information: www.pqmedia.com ((Comments on this story may be sent to [email protected]))

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