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Alternative Media Growth Surges 16% in First Half 2006, Outpacing Traditional Media and Economy, New PQ Media Report Finds

Alternative Sector Growth to Accelerate in Second Half 2006

Stamford, Conn., June 27, 2006 – Spending on alternative media strategies surged 16.4% in the first half of 2006 to an estimated $53.37 billion compared with the same period of 2005, according to exclusive research released today by PQ Media, a custom media research firm. Growth was driven by double-digit gains in most of the 23 subsegments of alternative media covered in Alternative Advertising & Marketing Outlook 2006, the second of five installments in PQ Media's Alternative Media Research series. This groundbreaking series is the first source to define, size and forecast the burgeoning alternative media industry.

PQ Media estimates that spending on alternative media will accelerate in the second half of 2006, as segments like branded entertainment and entertainment advertising generate higher growth due to the strong slate of first-run cable programs and the heavy schedule of sporting and music events timed for the summer. As a result, overall alternative media spending will grow 18.5% to $115.77 billion for full-year 2006. The alternative advertising sector is forecast to grow 19.9% for full-year 2006, driven primarily by online advertising, while alternative marketing is expected to increase 17.6% for the year, fueled mainly by mobile and interactive marketing, according to Alternative Advertising & Marketing Outlook 2006.

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% to $51.62 billion in 2006. The value of product placements will reach $5.71 billion at year's end, up 27.6% from the 2005 level. PQ Media will release on August 1 the Global Branded Entertainment Forecast 2006, the much-anticipated followup to Product Placement Spending in Media 2005.

While alternative media spending surged in the first half of the year, expenditures on traditional media struggled to keep pace with broader economic growth, an emerging trend in recent years that reflects the shift in advertising and marketing spending. Traditional media expenditures on various print and broadcast vehicles increased only 4.5% in the first half of 2006, and are expected to remain in the single digits for the full year as well, according to PQ Media.

"The data gleaned from our Alternative Media Network indicates that brand marketers are accelerating the shift of media dollars away from conventional to newer media using digital technology to reach youth and influential demographics," said Patrick Quinn, president of PQ Media. "Advertisers stated that even though many alternative media tactics are still unproven, they hold strong promise for delivering better ROI, reaching target markets and engaging consumers."

Double-digit growth in 2006 follows another strong year in 2005 when total alternative media spending rose 18.8% to $97.66 billion, according to Alternative Advertising & Marketing Outlook 2006. All four broad segments – entertainment and out-of-home advertising, online advertising, branded entertainment marketing, and mobile and interactive marketing – posted double-digit growth for the year.

PQ Media will publish an update of its alternative media figures in January 2007, including 2006 actuals and a detailed five-year forecast and trend analysis. An executive summary of Alternative Advertising & Marketing Outlook 2006 is available online at http://www.pqmedia.com/alternative-advertising-marketing.html. PQ Media is the world's leading provider of alternative media research through its custom and syndicated research, in addition to covering traditional media spending, trends and topics for brand marketers, media buyers, media companies and financial institutions. PQ Media is located at Two Stamford Landing, Suite 100, Stamford, CT 06902. Phone is 203-921-0368; Fax, 203- 921-0367; E-mail, info@pqmedia.com.