Apr 1, 2006 12:00 PM, Amy Johannes

Last month, Visa broke new ground when it upsized billboards and touted its fraud-protection service as part of the story line in Ubisoft's crime-solving video game CSI 3: Dimensions of Murder. Players couldn't miss it. The enhanced visibility of the product placement effort is just one sign of more things to come in entertainment marketing this year.

“There is a fundamental shift going on with the media business and brand marketers want to stay on top of that,” says Patrick Quinn, president, Stamford, CT-based research firm PQ Media.

In 2005, the value of branded entertainment marketing in the U.S. totaled $71.2 billion, according to PQ Media's 2006 Alternative Media Research Series. For 2006, entertainment marketing tactics are on the rise, with a projected 13.1% category growth to $80.5 billion, per PQ Media's report. And with so many tentacles, marketers categorize spending in just about every tactic imaginable.

In 2005, event marketing (sporting events and concerts) led the pack with a value of $54.5 billion, followed by sponsorships at $12.1 billion. For 2006, event marketing is expected to rise 12.6% to $61.3 billion and event sponsorship by 9.1% to $13.2 billion, the report says. For its share, the value of product placement totaled $4.5 billion in 2005 and is expected to remain hot for 2006 with a projected 27.6% growth to $5.7 billion, the report states.

The report, which also covers entertainment advertising, digital and on-demand marketing and online and outdoor advertising, will be released in five installments starting this month.

Continuing its stronghold in TV programs, product placement in 2005 also played a pivotal role in video games. Brands blended products into a game's storyline to enhance players' experience and boost realism. U.S. marketers spent $71 million on video game advertising in 2005 per Boston-based Yankee Group. By 2009, the tactic is expected to soar to $561 million.

And brands like Visa are on the right track. In the CSI game, Visa's fraud protection service alerts spending on a victim's account, which prompts a detective to investigate the activity.

“You are seeing more natural and organic placements,” says Lisa Precious, media spokesperson for the Entertainment Resources & Marketing Association, La Habra Heights, CA. “The trend will certainly continue.”

As a result of strong partnerships last year, more brands are planning joint promotions with entertainment properties for 2006. Nearly one-third of brand marketers (29.7%) said they expect to increase joint promotions in the field this year, compared to 20.2% in 2004 according to PROMO's 2006 Industry Trends Report. The number of marketers who planned to decrease joint promotions remained flat.

For 2006, brands will be thinking outside the box even more.

“Now that so many technology companies are applying their platforms to marketing brands, brands are finally saying, ‘we're ready to take the plunge,’” says Marcus Peterzell, president of AWE, a division of Omnicom.

Studios, for instance, will look for new media opportunities beyond traditional movie tie-ins, says Mary Goss Robino, senior VP-worldwide promotions, Columbia TriStar Marketing Group.

“In the past, our whole focus was about TV media as partners, but there are other creative ways [to reach consumers] whether it's online or mobile,” she says. “It's really more about the idea and about being smart and clever.”

SNAPSHOT 2005

Branded entertainment marketing valued at $71.2 billion for 2005

Product placement growth in TV and video games continues

Joint sponsorships for entertainment properties to rise in 2006

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