Future of Advertising Trends and Alternative Media Channels
Primary research carried by PQ Media took the first-ever macro and micro look at the emerging digital & alternative media sector. Its data indicates that alternative and digital media can expect strong growth in 2008, despite an economic slowdown in the U.S. Specifically, PQ says total spending on alternative media - including expenditures on online / mobile, entertainment, and digital out-of-home - is forecast to grow 20.2 percent to $88.24 billion in 2008. Furthermore, that category will post a compound annual growth rate (CAGR) of 17.0 percent between 2007 and 2012, hitting $160.82 billion.
Methodology: In coming to these conclusions, PQ Media says it researched, surveyed and/or consulted with almost 10,000 traditional and alternative media companies for input regarding size, scope, trends and growth of the alternative media industry. Additionally, it claimed to have examined thousands of public and private documents from more than 2,500 unspecified sources. More details about PQ's methods are here.
“With the explosion of disruptive digital technologies, volatile media markets, audience fragmentation and rapid pace of change, the PQ Media Alternative Media Forecast 2008-2012 provides media stakeholders with needed perspective, actionable data and fresh insights necessary for sound strategic planning and media mix decision-making.”
“Spending on alternative media, which includes advertising and marketing, jumped 22.0% to $73.43 billion in 2007, and is expected to continue its rapid ascension in 2008. Despite a slowing economy; as brand marketers scramble to stay in step with a rapidly changing media landscape. 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. Alternative media is forecast to represent 26.6% of total U.S. advertising and marketing spending by 2012.”
Source: PQ Media Alternative Media Forecast 2008-2012
"By 2012, we anticipate one out of every four dollars spent on advertising and marketing will be earmarked for alternative media," said Patrick Quinn, President and CEO of PQ Media. "Alternative advertising and marketing media are driving a new media order that presents vast opportunities for industry stakeholders, but also key challenges for some of the fastest-growing digital media segments. Technological advances have led to critical changes in consumer behaviors and media usage patterns, which have pushed the advertising and marketing ecosystems into a seminal period of transition. Driven by these market forces, brand marketers are seeking new strategies to connect with consumers through engaging means in captive locations, while at the same time providing proof-of-performance metrics. This confluence of trends is fueling the migration of dollars to alternative media."
Spending on 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 represented 14.5% of total marketing spend in 2007, up from 8.7% in 2002.
Source: Alternative Media Forecast 2008-2012, 2008 PQ Media, LLC
