STAMFORD, Connecticut: Despite America's reeling economy, spending last year on alternative media rose 22% to $73.4 billion (€46.6bn; £36.7bn) and is forecast to grow another 20% to $88.2bn during 2008, according to research firm PQ Media.
Its latest report, PQ Media Alternative Media Forecast: 2008-2012, reveals that media such as online videos, instore TV and cellphones accounted for 16% of total advertising and marketing spend in 2007, up from nearly 8% in 2002.
It expects that by 2012, alternative media will account for around 27% of total US adspend, with marketers investing more than $160.8bn.
Declares PQ Media president/ceo Patrick Quinn: "Americans are spending more time out of the home, working late hours, communicating via wireless devices, shopping in malls and stuck in traffic.
"There has to be some change in [ad/marketing] strategies to reach these people."
The largest alternative media segments in 2007 were event sponsorships and marketing, search and lead generation, e-direct marketing, online classifieds and displays, local pay-TV and product placement.
While all 18 segments of PQ Media's alternative media matrix posted double-digit growth in 2007, twelve grew faster than 20% during the year and are projected to drive growth during the next five years.
Those segments in order of projected growth include consumer-generated media, mobile advertising, video game advertising, online video advertising, word-of-mouth marketing, advergaming, webisodes, product placement, search and lead generation advertising and digital out-of-home media.
Data sourced from USA Today.com; additional content by WARC staff