At a recent conference, I met the founder of PQ Media, who rather impressed me – being the stats fiend I remain in my heart of hearts – with his econometric prowess. His just-released report, PQ Media Alternative Media Forecast: 2008-2012, provides ever-more quantitative evidence of what we all see daily – a fragmented media landscape hungry for more and more innovation.

The report reveals that alternative media – consisting of digital out-of-home, local pay TV, video-on-demand, interactive TV, digital video recorder advertising, video game and home video advertising, and satellite radio advertising – jumped 22% to $74.43B in 2007. This comprised 16.1% of overall advertising/marketing spend, more than twice what it was only five years before.

Analysts expect growth to continue through 2008 despite the slowing economy.

“Alternative advertising and marketing media are driving a new media order that presents vast opportunities for industry stakeholders,” weighs in Patrick Quinn. “Driven by market forces, brand marketers are seeking new strategies to connect with consumers through engaging means in captive locations, while at the same time providing proof-of-performance metrics. This confluence of trends is fueling the migration of dollars to alternative media.”

The report identifies challenges in areas of new technology – and the changing consumer behaviour/media usage patterns that such technology has created – along with media fragmentation and growing demand for improved ROI as being of particular concern to marketers.

Innovation, consumer response, and ROI. Sound familiar? We thought so too.