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Branded Entertainment, Popular, Expensive, Cannibalizing Budgets

A huge proportion of national advertisers are pursuing "branded entertainment," according to a study done by the Association of National Advertisers, but most think that the deals are enormously overpriced. In fact, 79 percent of the advertisers said the deals cost more than they should, which might be why only 63 percent of marketers said that they had participated in such a deal. Four out of five marketers doing these deals found the budget coming from existing sources, with only about 20 percent generating incremental ad budget to fund the projects. The top benefit cited by far was the potential for an increased emotional bond with a brand. Not surprising given rarified nature of the people surveyed, seven out of eight of the marketers said that their branded entertainment efforts came in the form of television. 34 percent said they'd additionally done this sort of deal in magazines, 31 percent in movies and 24 percent in video games. A large majority said they expect these deals to be offered as part of the upfront buying process.

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