“Well executed branded entertainment not only works, it’s capable of creating long-lasting emotional connections. This is why product placement has been a favored component of media strategy for over a century.” -Patrick Quinn, CEO, PQ Media
Stamford, CT (PRWEB) March 13, 2015
Powered by the fifth straight year of accelerated growth in product placement investments and strong expansion in consumer events in emerging markets, global branded entertainment revenues posted faster year-on-year growth in 2014 as paid placements in television, film and digital media combined with consumer event marketing and sponsorships to post a 6.3% increase to a record $73.27 billion, according to the PQ Media Global Branded Entertainment Marketing Forecast 2015-19
The US market represented almost half (47.1%) of the world’s branded entertainment industry, generating $34.53 billion in 2014, a 7.3% gain compared with the prior year. American brand marketers and their agency partners have become more sophisticated during the past decade in their strategic planning and tactical execution of TV placements. Among the advanced strategies are increasing demand for integrations of products into scripts, instead of settling for background shots, and negotiating key placement deals to ensure close proximity to commercial breaks in which a brand’s product is slated to appear first in the ad pod of multiple spots to increase viewer engagement, according to PQ Media.
Meanwhile, improving economies across Europe, combined with relaxed regulation of TV placements and major brand marketers upping their antes for choice consumer event opportunities, such as those afforded by international sporting events in 2014 like the World Cup in Brazil, also sparked branded entertainment growth. While TV remains the world's most consumed medium, viewing of first-run programs on TV is declining in favor of time-shifted video through multiple media, often to avoid traditional 30-second ads. As a result, product placement has strengthened its position in the multimedia campaign mix.
In addition, US marketers aren’t the only ones to become savvier in the use of various tactics to integrate brands into TV shows and movies, particularly in emerging markets like Brazil, Mexico and India, where product placements for many years were planned and executed on the fly at the request of an advertiser. More recently, entertainment marketing agencies have emerged in some of these markets to provide similar services to those operating in the US, such as collaborating more closely with producers to execute script integrations.
Product placement is the smaller, but faster-growing segment of branded entertainment with global revenues increasing 13.6% in 2014 to $10.58 billion, as the US, Brazil and Mexico combined to account for more than three-quarters of the total. Brands are increasingly forming dedicated teams within their corporate structures to manage branded entertainment opportunities by partnering directly with content providers on various aspects of product integrations. Brands are also focusing more placements in media content favored by younger audiences, with digimedia integrations producing the highest growth of the eight platforms tracked by PQ Media, rising 35.8% in 2014, followed by the growing popularity of placements in recorded music and related music videos of leading pop artists, driving 15.9% growth.
"Leading brand marketers are seeking improved methods to engage younger audiences used to ad-skipping and on-demand media usage, and branded entertainment provides omnichannel possibilities to more effectively engage post-boomers, particularly Millennials and iGens,” said Patrick Quinn, CEO & CCO, PQ Media.
Recent market research indicates that well managed product placements generate higher audience engagement and often lead to improved sales. Meanwhile, better ROI metrics are being introduced at consumer events that have reportedly led more brands to invest in this media platform. Consumer-facing events are gradually being included more often as part of integrated media campaigns, especially during new product launches. In Europe, many brands delayed new releases in larger markets enduring protracted recessions through 2013, such as France, Spain and Italy, and only last year introduced new products via consumer events, which was virtually unheard of less than a decade ago. Recent international sporting events, such as the 2014 World Cup which boasted the largest TV audience ever in Germany, have spurred bidding wars for exclusive rights to event sponsorships during big-time competitions.
“While most media industry headlines focus on trends and companies driving online, mobile & social media growth, the durability, creativity and consistent growth of branded entertainment, which uses multiple media to engage more elusive, distracted and younger audiences, is often shrouded by news coverage of a relatively small, but vociferous opposition to product placement,” Quinn said. “But the research is clear that well executed branded entertainment not only works, but it’s capable of creating long-lasting emotional connections. This is why product placement has been a favored component of media strategy for over a century.”
PQ Media projects global branded entertainment revenues to grow 6.8% in 2015 and generate an 8.1% CAGR in the 2015-19 period to $108.04 billion. The US market is forecast to expand 8% this year and rise at a 9.1% CAGR through 2019, exceeding $50 billion.
About the Forecast:
The PQ Media Global Branded Entertainment Marketing Forecast 2015-19 has been the industry’s KPI benchmark for 10 years, delivering exclusive data on branded entertainment revenues, growth, key market drivers and potential challenges ahead by global region, country, media platform (TV, film, videogames, internet, mobile, music, etc.), as well as consumer event sponsorships and marketing. The 6th edition covers the 2009-19 period, with 2014 actuals, 2015 pacings, and 2015-19 forecasts.
This year’s edition was redesigned as a user-friendly slide deck for easier data comparisons, internal reporting and presentations, delivering 250 slides of data-rich competitive intelligence supported by credible, consistent definitions of the various product placement and consumer event categories with over 325 datagraphs. The core report is also bundled with a new, value-add Excel Databook, delivering the deepest drill-downs ever performed on the Top 15 Global Markets.
Also included are real-world examples of branded entertainment in Netflix’s “House of Cards”; Apple products featured in big movies like “Captain America”; and samples from recorded music and related videos by leading pop stars, including Lady Gaga, Beyoncé and Rihanna. Free downloads of the Executive Summary, Table of Contents and Dataset Samples are available by clicking any of the report hyperlinks above.
About PQ Media:
PQ Media delivers actionable competitive intelligence and strategic guidance to the management teams of the world's leading media, entertainment & technology organizations. PQ Media’s proprietary research methodology, databases and opinion leader panels equip top executives with the intelligent data solutions they need to make smarter business decisions amid the transforming global media ecosystem.