OBE Italian Branded Entertainment Market Report 2016

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The Observatory of Branded Entertainment (OBE) predicts that the Italian Branded Content & Entertainment (BC&E) Industry will worth almost 300 million Euros by the end of 2016. Our study on the market was presented at the second annual OBE Summit in Milan last March.

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The value of Italian Branded Entertainment (BE) market in 2015 reached 240 million Euros, and is predicted to grow to around 300 million in 2016 and exceed 350 million by 3017.  Market leaders are optimistic about market growth in the period from 2015-2017:

  • 42% of respondents say they are certain about the increase in BE activities
  • 49%  say that BE activities are likely to increase
  • No-one expects activities to decrease

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Why companies do BC&E?

According to the OBE study advertisers integrate BC&E into their strategies for the following reasons:

  • 56%  to build or strengthen the brand’s values
  • 51% to invest in alternatives to traditional advertising
  • 47% to get in touch with real or potential customers
  • 44% to increase brand awareness
  • 35% to provide opportunities for entertainment that engage the user

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Companies that invest the most in BC&E are food (21.2%), automotive and technology sectors. Interesting, the investment from food and technology sectors is growing, while investment from beverage and clothing sectors is in decline.

AVERAGE VALUE OF PROJECTS

The average value of the projects is 158,000 euro, and there has been a decrease of 17% across all formats. As with figures in 2014, the differences among avarege values depends on the specific formats chosen and media planning:

  • TV Programmes: average value = 215K EUR
  • Co-production of media events, e.g. music concerts and theatrical events: average value = 211k EUR
  • Co-production of films (short and feature films):  average value = 197K EUR
  • Internet video: average value =159K EUR
  • Adverergames, native advertising and radio programs: average value = 50K EUR

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Other interesting findings that help highlight how BC&E has become an important marketing reality in the Italian market, include:

  • 6% of the companies consulted are 100% focused on the development of BC&E projects
  • 24%  have created a dedicated BC&E Unit

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In addition, the average number of employees dedicated to BE has grown to 6 from 5.1 in 2014. This breaks down as follows:

  • Media agencies: 7.3
  • Advertising agencies: 6.8
  • Broadcasters TV and Radio): 5.6
  • Creative Agencies: 4.8
  • Production Companies (Film, TV and Digital): 4.7
  • Digital Platforms: 2

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Number of players

According to the OBE study 143 companies have made at least one BC&E project in 2015, of which 35 companies operate in the sales and procurement industry  (22 in the sample study) and 108 companies in the creation and production sector (47 in the sample).

The sample

A total of 69 companies participated in the study:

  • 18 market leaders from broadcasting industry and advertising
  • 32 creative agencies (Communication / PR)
  • 16 production companies
  • 3 media agencies

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Download full report: OBE Italian Market Report 2016

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