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PQ Media: Alternative Media Growth Up 16 Percent in 1H06

Spending on alternative media strategies in the first half of 2006 reached an estimated $53.37 billion, an increase of 16.4 percent compared with the first half of 2005, according to research released today by PQ Media. Growth was driven by double-digit gains in most of the 23 sub-segments of alternative media covered in its "Alternative Advertising & Marketing Outlook 2006" report.

PQ Media expects overall alternative media spending to grow 18.5 percent year over year to $115.77 billion for all of 2006. The alternative advertising sector is forecast to grow 19.9 percent for full-year 2006, driven primarily by online advertising; the alternative marketing sector is expected to increase 17.6 percent for the year, fueled mainly by mobile and interactive marketing.

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The expected double-digit growth in 2006 follows strong growth in 2005, when total alternative media spending rose 18.8 percent to $97.66 billion, according to PQ Media. All four broad segments - entertainment and out-of-home advertising, online advertising, branded entertainment marketing, and mobile and interactive marketing - posted double-digit growth for the year.

Branded entertainment, including product placement, event marketing, event sponsorships, webisodes and advergaming, is the largest segment of alternative media, and is expected to grow 15.5 percent to $51.62 billion in 2006. The value of product placements will reach $5.71 billion at year's end, up 27.6 percent from the 2005 level.

"The data gleaned from our Alternative Media Network indicates that brand marketers are accelerating the shift of media dollars away from conventional to newer media using digital technology to reach youth and influential demographics," said Patrick Quinn, president of PQ Media. "Advertisers stated that even though many alternative media tactics are still unproven, they hold strong promise for delivering better ROI, reaching target markets and engaging consumers."

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