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Alternative Advertising and Marketing Outlook

According to PQ Media, spending on alternative media strategies surged 16.4 percent in the first half of 2006 to an estimated $53.37 billion compared with the same period of 2005. PQ estimates that spending on alternative media will accelerate in the second half of 2006, to a full year forecast of growth at 18.5 percent to $115.77 billion.

Alternative marketing is expected to increase 17.6 percent for the year, fueled mainly by mobile and interactive marketing, according to PQ. All four broad segments of Alternative Media - entertainment and out-of-home advertising, online advertising, branded entertainment marketing, and mobile and interactive marketing - posted double-digit growth for the year.

Branded entertainment, including product placement, event marketing, event sponsorships, webisodes and advergaming, is the largest segment of alternative media, and is expected to grow 15.5 percent to $51.62 billion in 2006. The value of product placements will reach $5.71 billion at year's end, up 27.6 percent from the 2005 level.

PQ notes that while alternative media spending surged in the first half of the year, expenditures on traditional media increased only 4.5 percent in the first half of 2006, reflecting the shift in advertising and marketing spending. Traditional media expenditures on various print and broadcast vehicles, and are expected to remain in the single digits for the full year as well.

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