What: Brazil and Mexico are among the top 5 Branded Entertainment Markets in the World and among the fastest growing Global Product Placement markets, according to the just released PQ Media Global Branded Entertainment Marketing Forecast 2015-19.
Why it matters: Branded entertainment in Brazil was one of the fastest growing markets worldwide in 2014 after it hosted the FIFA World Cup.While in Mexico, paid placements in telenovelas remain the primary revenue driver in the Mexican branded entertainment sector.
Powered by the fifth straight year of accelerated growth in product placement investments and strong expansion in consumer events in emerging markets, global branded entertainment revenues posted year-on-year growth of 6.3% to register a record US$73.27 billion, according to the PQ Media Global Branded Entertainment Marketing Forecast 2015-19.
Branded Entertainment Marketing is a marketing discipline that blends brand messages with entertainment to engage consumers, build brand awareness and create positive brand associations to drive consumer sales. Branded entertainment aims to capture the consumer’s attention and elevate a brand’s image by associating it with popular personalities, media brands, organizations or events, such as TV characters, news outlets, sports teams, among others.
Usually related to Branded Entertainment but not the same, Product Placement is a Marketing tactic increasingly used by marketers as part of multimedia campaigns in which the objective is to place or integrate brand names, logos or specific products within the non-ad content of various media. The goal of advertisers utilizing product placement is to prominently place or creatively integrate brands or products into particular story lines or scenes to promote brand awareness, favorable brand attitudes and purchase intention.
Brazil & Mexico: Key trends
Even though the US is the largest global branded entertainment market, as well as the leader in both sectors, it is not the only country to become savvier in the use of various tactics to integrate brands into TV shows and movies, particularly in emerging markets like Brazil, Mexico and India, where product placements for many years were planned and executed on the fly at the request of an advertiser. In fact, Mexico and Brazil now are among the top 5 global Branded Entertainment Markets.
- Branded entertainment in Brazil was one of the fastest growing markets worldwide in 2014 after it hosted the FIFA World Cup, with another expansion expected in 2016 when the country hosts the Summer Olympics.
- In Mexico: Paid placements in telenovelas remain the primary revenue driver in the Mexican branded entertainment sector, as episodes are increasingly becoming available online where ad inventory is tight, thus being integrated into programs has become more important to brands.
More recently, entertainment marketing agencies have emerged in some of these markets to provide similar services to those operating in the U.S., such as collaborating more closely with producers to execute script integrations.
Product placement is a smaller, but faster-growing segment with global revenues increasing 13.6% in 2014 to US$10.58 billion, as the US, Brazil and Mexico combined to account for more than three-quarters of the total. Brands are increasingly forming dedicated teams within their corporate structures to manage branded entertainment opportunities by partnering directly with content providers on various aspects of product integrations. Brands are also focusing more placements in media content favored by younger audiences, with digital media integrations producing the highest growth of the eight platforms tracked by PQ Media, rising 35.8% in 2014, followed by the growing popularity of placements in recorded music and related music videos of leading pop artists, driving 15.9% growth.
PQ Media projects global branded entertainment revenues to grow 6.8% in 2015 and generate an 8.1% CAGR in the 2015-19 period to US$108.04 billion.
“Leading brand marketers are seeking improved methods to engage younger audiences used to ad-skipping and on-demand media usage, and branded entertainment provides omnichannel possibilities to more effectively engage post-boomers, particularly Millennials and iGens,” said Patrick Quinn, CEO & CCO, PQ Media.