PwC: Brands Shift Focus from Ads on a Medium to Marketing with Content
Following year over year declines in 2009, the global entertainment and media market will grow by 5% compounded annually through 2014, according to a new report. The Global Entertainment and Media Outlook Report 2010-2014, issued by accounting firm Pricewaterhouse Coopers (PwC), revealed that the global E&M market will reach $1.7 trillion by 2014 with the fastest growing region being Latin America, having an 8.8% compound annual rate (CAR). North America is forecasted to expand at a 3.9% clip to $558 billion, the slowest growing region in the study.
Brand spending in the media and entertainment marketplace is on the rebound according to the firm's projections, but the form in which advertising takes is undergoing a fundamental long-term shift.
From the report:
"Advertising revenues have been particularly hit by the turbulent markets and while there are signs of a rebound, this is still fragile in nature. Spend is unlikely to return to former levels. By 2014, the US advertising spend is expected to still be 9 per cent below its level in 2006. Overall, global advertising will increase at a 4.2 per cent CAR from US$406 billion in 2009 to US$498 billion in 2014. Internet advertising will join television in 2014 as the only media with spending in excess of US$100 billion.
The projections reflect the fragmentation of the market and behavioural changes of consumers. The advertising industry is responding to consumers’ shifting attention and has embarked upon a long-term journey towards total marketing or total brand communication. Brands are changing their focus from advertising on a medium, to marketing through, and with, content."
To purchase a copy of The Global Entertainment and Media Outlook Report, visit pwc.com.