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Spending on Alternative Media |
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Spending on alternative media in the US jumped 22% from 2006 levels to reach $73.43 billion in 2007, and that rapid growth is expected to continue in 2008 despite a slowing economy. Alternative media, including 18 digital and non-traditional media segments, accounted for 16.1% of total advertising and marketing spending in 2007, up from only 7.9% in 2002 , according to a new report from PQ Media.
By 2012, we
anticipate one out of every four dollars spent on advertising and
marketing will be earmarked for alternative media. Alternative media
spending grew at a compound annual rate of 21.7% from 2002 to 2007.
- The alternative-media growth momentum to continue in 2008 and through
the rest of the decade as brand marketers seek new ways to deal with
the evolving media landscape:
* Total spending on alternative media is forecast to grow 20.2% to
$88.24 billion in 2008 and post compound annual growth of 17.0% in the
2007-2012 period, reaching $160.82 billion.
* Alternative media is forecast to account for 26.6% of total US
advertising and marketing spending in 2012.
* The largest alternative media segments in 2007 were event
sponsorships & marketing, search & lead generation,
e-direct marketing, online classifieds & displays, local pay
TV, and product placement.
While all 18 segments of the Alternative Media Matrix - including 12
alternative advertising segments and six alternative marketing segments
- posted double-digit growth in 2007, 12 of the 18 segments grew faster
than 20% for the year.
* The following segments are projected to drive growth over the next
five years (in order of projected growth): consumer-generated media,
mobile advertising, videogame advertising, online video advertising,
word-of-mouth marketing, advergaming & webisodes, product
placement, search & lead-generation advertising, and digital
out-of home media.
* Among the segments forecast to grow the most by 2012:
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Online search spending is expected to be 113% more than 2007 levels and
will reach $26.1 billion.
- Event
sponsorship expenditures are expected to reach $33 billion, 72% more
than last year.
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E-direct marketing (email and pop-up ads) spend is forecast to reach
$22.1 billion, up 121%.
- Online
video and rich media spending is expected to be 389% more, reaching
$12.2 billion.
Spending highlights and key trends affecting each major sector and
related segments of alternative media:
* Alternative
advertising,
including online & mobile advertising and entertainment
& digital out-of-home advertising, climbed 25.8% to $39.22
billion in 2007, and grew at a CAGR of 26.2% in the 2002-2007 period.
Alternative advertising accounted for 17.7% of overall ad spend in
2007, up from a 7.0% share in 2002.
* Online
& mobile advertising, including search &
lead generation, online classifieds & displays, e-media, online
video & rich media, internet yellow pages, consumer-generated
ads, and mobile advertising, rose 29.1% to $29.94 billion in 2007, and
increased at a CAGR of 31.4% in the 2002-2007 period. Growth was driven
by brand marketers’ shifting budgets out of traditional
advertising to reach key demographics that have increased online and
mobile usage due to improvements in online and wireless technology,
particularly with wider adoption of broadband access.
*
Entertainment & digital out-of-home (OOH) advertising, including
local pay TV, digital out-of-home media, video-on-demand (VOD),
interactive TV (ITV), and digital video recorder (DVR) advertising,
videogame & home video advertising, and satellite radio
advertising, rose 16.2% to $9.28 billion in 2007, and climbed at a CAGR
of 15.0% from 2002 to 2007. Spending was fueled by new ad insertion
technologies, the pursuit of new ad platforms that reach young
audiences; and the steady growth of local pay TV, satellite radio, and
DVRs, subscribers.
* Alternative
marketing,
including branded entertainment and interactive marketing, rose 17.9%
to $34.21 billion in 2007, and posted a CAGR of 17.5% in the 2002-2007
period. Alternative marketing accounted for 14.5% of total marketing
spend in 2007, up from 8.7% in 2002.
* Branded
entertainment marketing,
including event sponsorship & marketing, paid product
placement, and advergaming & webisodes, rose 14.7% to $22.30
billion in 2007, and climbed at a CAGR of 13.4% from 2002 to 2007.
Growth was driven by deployment of media strategies aimed at being more
interactive and entertaining than traditional media, as well as to
engage target audiences in locations that are not affected by
ad-skipping technology.
* Interactive
marketing,
including e-direct marketing, word-of-mouth marketing, and e-custom
publishing, rose 24.4% to $11.91 billion in 2007, and climbed at a CAGR
of 28.6% from 2002 to 2007. Spending was driven by strong gains in
segments that reach affluent and influential consumers with focused
messages that are either opted in to or come from very trusted sources.
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RELATED REPORTS:
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ALL 435 REPORTS |
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UGC
Videos Attraching Biilions of Viewers
U.S.
Internet users watched more than 10 billion videos online during the
month of December, 2007, representing the single heaviest month for
online video consumption, according to a study by comScore. Google
Sites saw substantial growth and extended its video market share gains,
now accounting for nearly one out of every three videos viewed online.
With the writer's strike keeping new TV episodes from reaching the
airwaves. It appears that online video is stepping in to help fill that
(alternatives for fresh content) void.
UGV
Market Growth
User
Generated Video (UGV) scored 22.4 billion views in 2007, up 70% over
2006. Semi professional content grabbed a 47.5% total share on MySpace
TV, and the Screen Bites category on Crackle.com generated a 17.5%
cumulative share of total views, according to a new report from
AccuStream iMedia Research. The report provides detailed analysis for
AOLUncut, Broadcaster.com, Crackle.com, Ebaumsworld, LiveDigital,
Metacafe, MySpace TV, Revver.com, Vsocial.com, VEOH.com, Yahoo Video
and YouTube, among others.
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