Product placement is still king

Branded entertainment is expected to jump 14 percent to $25.4 billion in 2008, according to Branded Entertainment Marketing Forecast: 2008-2012, a PQ Media report.

The alternative media researcher defines branded entertainment as "marketing strategies that integrate products into entertainment venues that typically provide high engagement and interactivity."

By 2012, PQ says, branded entertainment will grow at a compound annual rate of 12.8 percent, surpassing $40 billion.

The report covers three categories: event sponsorship and marketing; product placement; and advergaming and webisodes, according to AdWeek. In 2007, PQ found branded entertainment marketing accounted for eight cents of every marketing dollar spent.

Branded content also grew 14.5 percent to a record $22.3 billion in '07. Spending on advergames and webisodes jumped 35 percent, to $217 million.

In 2008, webisodes will have the highest growth rate (45 percent) as networks attempt to capture the youth demo's attention online.

(For more 2007 as well as forecast data, see the coverage by MarketingCharts.)

PQ surveyed 1,000 branded entertainment and related companies to compile this report.