Branded entertainment is becoming an important tool in marketers’ arsenal to reach consumers and is steadily growing, a recent survey found.
Some 66% of marketers engage in branded entertainment projects, compared to 63% in 2005, an Association of National Advertisers (ANA) survey found. According to the survey, 80% of brands participate in branded entertainment via TV spots, 46% by sporting events/venues, 45% through movies and 28% via the Internet. Another 26% respectively said they used branded entertainment in magazines or video games.
During a discussion on the survey panelists offered their views about the growing tactic.
“We’re in an experimental phase now,” said Jak Severson, managing partner, Madison Road Entertainment, Hollywood. “We’re moving into the phase where a lot of marketers will be getting smarter about [branded entertainment].”
More than half of respondents (51%) said one of the main benefits of branded entertainment is the ability to align the brand with relevant content. Other benefits include the avoidance of traditional commercial clutter and the chance to take advantage of a “trendy/sexy” communications tool. Some 27% of respondents listed the opportunity to build brand affinity as the top benefit of the tactic, followed by the ability to make a stronger connection with consumers, the survey found.
As the tactic grows more legs, brands have to brace themselves for a competitive field, said Colleen Milway, global media director, Campbell Soup Co.
“Competition is steep,” she said. “Everybody wants to get in the game.”
Not all marketers are star struck. Some 27% of respondents said their brands don’t lend themselves to meaningful integration. Another 24% cited a lack of measurable results, where as 18% respectively said branded entertainment was too new and regulation issues pose concerns. Thirteen percent of marketers said costs have kept them from using the tactic.
A majority of marketers are shifting money out of their traditional media budget (62%) to fund branded entertainment, where as 44% are shifting dollars from other marketing budgets, the survey found. Some 35% of respondents are using incremental budgets for branded entertainment.
When it comes to measurement, 64% of respondents said available research does not effectively measure the ability of branded entertainment integration to deliver a brand’s objective. Ten percent of respondents said it does and 26% said they were unsure. Sixty-one percent of brand marketers said they find it challenging to measure the impact of branded entertainment, compared to 56% in 2005, according to the survey.
Some of the top measurement tools brand marketers are using include audience size and demographics, quality of placement, brand awareness, program quality and direct impact on sales.
“Everybody is doing the best they can,” said Pam Dickey, executive director, brand advertising, for American Online, Inc. “It’s just going to be a learning process.”
One of the important questions a brand marketer should ask about the tactic is “does the show need me?,” according to Severson. If the brand or product doesn’t fit, the integration won’t be effective, he said.
The panel danced around the pricing issue, but said branded entertainment pricing includes a fee for the network, an investment share in media dollars and any resources the brand can bring to the table.
The ANA released the survey results yesterday at The Forum for Branded Entertainment…Live! in New York City, also hosted by The Association of Independent Commercial Producers.
The survey, conducted this month, asked 117 marketers about branded entertainment. Anheuser-Busch, AOL, General Motors Corp., Midwest Airlines, Nestlé USA, the Coca-Cola Co., Target and Unilever U.S. were among the survey participants.
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