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Report: Look for more ad dollars to hit brand activation
There is a new trend in marketing and it is all about brand activation - or pushing advertising dollars into an area that uses customer behaviors and actions to engage across channels. According to a new report brand activation spending will increase to at least $600 billion this year.
Researchers with PQ Media, on behalf of the Association of National Advertisers (ANA), found about 60% of ad budgets in 2015 were pushed into brand activation. By 2020, experts believe the brand activation market will push to $700 billion.
"End users are spending more time with media, but they are less engaged with advertising and marketing as a result of several key trends, including the fast growth of smart-tech products and mobile media, consumer adoption of ad-skipping devices, increased media multitasking with digital devices, and the growing consumption of media outside the home," said Patrick Quinn, president and CEO of PQ Media. "As a result, it's imperative for brands to more effectively use media strategies and channels that provide opportunities for higher engagement. And strong brand activation marketing will develop emotional connections with target audiences to drive brand loyalty."
The brand activation spend uses analytics to develop actionable insights and strategies that brands can then use to engage customers through the buying cycle.
Some interesting findings from the report include:
• 57% of brand activation marketing is outsourced to media companies
• Relationship marketing is the largest brand activation category
• Content marketing is the fastest growing brand activation category
• Automotive is the largest category using brand activation strategies
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