Branded entertainment marketing sector set for robust growth in 2008

Date: 15/02/2008

Branded entertainment - event sponsorship and marketing, paid product placements, in game advertising and "webisodes" - looks set to enjoy robust growth through 2008 and beyond. The prediction is based on record spend during 2007 in the branded entertainment marketing sector, which grew 14.7% to $22.3 billion (€15.3bn; £11.37bn).

Moreover, the genre has almost doubled in size over the last five years, as brand marketers continue to shift budgets from traditional advertising to alternative marketing strategies.

The trend is highlighted in Media Branded Entertainment Marketing Forecast: 2008-2012, a report released this week by PQ Media, a provider of alternative media econometrics.

Branded entertainment marketing (BEM) is projected to expand another 13.9% in 2008 to $25.41 billion, due mainly to brand marketers' quest for strategies and media that engage youth and other influential demographics.

BEM is expected to grow at a double-digit pace in 2008, driven by nearly $9 billion in event marketing spend, robust product placement spending (particularly on reality programming), at $3.5 billion, up nearly 25%; and growth in webisodes of 46% as major networks begin to produce full-length online episodes in an effort to tap the coveted youth market.

Key trends impacting each segment of branded entertainment include:

- Spending on event sponsorship and marketing, the largest segment of branded entertainment, rose 12.2% to $19.18 billion in 2007, as companies invested in marketing campaigns designed to create powerful and lasting brand impressions and experiences among consumers.

- 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. Higher DVR penetration combined with increased TV program product integration helped drive paid product placement spending.

- Spending on in-game advertising and webisodes increased 34.8% to $217.0 million in 2007, fueled by efforts among marketers to reach the elusive 18- to 34-year-old demographic, which is watching less television and spending more time on the internet playing video-games and downloading videos.

- In-game advertising and webisodes, while the smallest branded entertainment segment, is the fastest growing, climbing at a 51.7% CAGR from 2002 to 2007.

Source: WARC.com

Through its Media Committee and Digital Network, WFA is ensuring its members keep abreast of the latest trends in digital and interactive marketing. For more information please contact [email protected]