Study Gauges Alternative Media Spending

A new study released by a Stamford, Connecticut-based custom research firm shows a surge in ad spending on alternative media, and moderate growth in print spending.

Spending on alternative media strategies surged 16.4 percent in the first half of 2006 to an estimated $53.37 billion compared with the same period of 2005, according to PQ Media. While alternative media spending surged in the first half of the year, the research company said in a news release that expenditures on traditional media struggled to keep pace with broader economic growth. Traditional media expenditures on various print and broadcast vehicles increased only 4.5 percent in the first half of 2006, and are expected to remain in the single digits for the full year, according to PQ Media. "Blog, podcast and RSS advertising are being driven by some of the same factors boosting the growth of the overall alternative media sector: continued audience fragmentation, the perceived ineffectiveness of traditional advertising, and the elusive, but coveted 18-to-34-year-old demographic," said Patrick Quinn, president of PQ Media. "Blog, podcast and RSS advertising have demonstrated an ability to reach younger demographics as well as influentials, and the media tend to be highly engaging. These are attractive trends to brand marketers that are focused on return on investment."

The research is the second installment of five in a study callled, "Alternative Advertising & Marketing Outlook 2006." In the first installment, released in April, the study said that combined spending on blog, podcast and RSS advertising bolted 198.4 percent to $20.4 million in 2005, and is expected to grow another 144.9 percent to $49.8 million in this year. It went on to say that podcast advertising, nonexistent until 2004, is expected to be a larger market than blog advertising by 2010., Technology, auto and media brands are the most active in user-generated media advertising, accounting for more than half of total advertising spending in 2005, with the food & beverage and apparel categories rounding out the top five. The technology, auto and media categories will continue to generate more than half of all advertising in 2010, the first installment said.

In the latest installment, branded entertainment, including product placement, event marketing, event sponsorships, Webisodes and advergaming, appeared 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.