Branded entertainment set to spike
US branded entertainment marketing spend totalled $24.6 billion in 2009, a 1.3% decline on 2009, but will generate solid growth in 2010 and beyond, according to research released from PQ Media.
The branded entertainment industry was driven down by the massive economic recession in 2009, but was much less affected than traditional advertising and marketing spending, which was down 14.4% for the year, says the media econometrics outfit.
Total branded entertainment spend, including consumer events and paid product placement in media, is forecast to increase 5.3% in 2010 and post a CAGR of 9.2% through to 2014. Consumer events will remain the largest segment, while paid product placement will be the fastest growing in the 2009-2014 period.
“Global branded entertainment spending will continue to grow at accelerating rates in the forecast period as well, posting a 9.1% CAGR from 2009 to 2014, with consumer events remaining the largest segment and paid product placement the fastest growing,” says PQ Media. “The US will remain the largest branded entertainment market in the world through 2014 with 45.2% of total spending, but China will be the fastest growing with a 19.1% CAGR.”
PQ Media points to Lady Gaga and Coca-Cola as major proponents of branded entertainment. The artist’s 9.5-minute video for Telephone includes 10 product placements and generated more than 4 million views in its first 24 hours, while the Bad Romance clip, which also includes multiple placements, has been viewed over 230 million times. At the Vancouver Olympics, Coca-Cola promoted a ‘zero waste, carbon neutral’ programme, which included compostable coffee cups and lids, hybrid vehicles to transport products, and staff uniforms made from recycled bottles.
