Entertainment, Media and Ad Biz Grow
July 18, 2011 Leave a comment
Ad Age reports 8.8% growth in 2010 for the leading national advertisers. That growth marks the highest spending increase in six years. PricewaterhouseCooper’s global entertainment and media forecast predicts 5.7 percent compound annual rate growth through to 2015. Meteoric numbers compared to the usual glum economic indicators of consumer spending, unemployment rate and retail sales.
So why, with all the gloom and doom of economic forecasting, does the intersect of Hollywood and Vine looks so good? It looks like product manufacturers understand the need for advertising in a slow market and recognize that entertainment and media provide the tools for getting their word out.
The winners for the entertainment gains are all things film related: TV (both advertising +4.9% and subscription/license fees +5.6%) , filmed entertainment +5.4%, and video games +4/6%. Interestingly enough recorded music is the only category that was forecast negative growth -.4%. Even the music category may be a surprise given the recent Nielsen report putting music sales up year to date in 2011. Music sales are up over 8% overall compared to 2010 with of course digital music leading the growth at 19%.
In The Hollywood Report article on the forecast, Stefanie Kane of PricewaterhouseCooper says “The global economy started recovering perhaps earlier in 2010 than we thought, and advertising has bounced back”. The battle for consumer’s attention is being fought on the frontline of entertainment and media. As unlikely as it might seem – entertainment and media may indeed be the front line indicator of overall economic growth.