|
April 14, 2005
In-Theater Ads, Promotions Grow As Agencies, Exhibitors
Expand Their Offerings
As little as three years ago, in-cinema advertising usually
fell into three categories: beverages, candy and videogames. The tool was often
used by brands that had venue-sponsorship or concession deals with the
theaters. But the client base for in-theater ads is expanding, both in
terms of dollars spent and in the range of brands coming abroad. Marketers
tapping into theaters now include fragrances and colognes, automobiles,
hardware and software companies, retailers, financial services, and television
networks. While moviegoers remain ambivalent about seeing ads on the
big screen, exhibitor executives estimate that the business is growing some 25%
per year. That figure is in line with research from the Cinema
Advertising Council (CAC), which was formed in 2003 to promote movie theater
ads. The CAC says its members – who represent about 25,000 movie screens, and
nearly all of the theaters that accept advertising – sold $315 million worth of
on-screen ads in 2003, with an additional $38.4 million worth of ads in lobbies
and other promotions. (Figures for 2004 were not available at press time.) “Cinema advertising is now landing on media planners’ desks
as part of a promotion, instead of something to spend leftover dollars on,"
says John NcCauley of Loews Cineplex Entertainment. Cinemas attract a high percentage of consumers in the
advertising sweet spot of 12-34-year-olds, according to a Nielsen Cinema Report
released in 2003. While that group represents 33% of the overall U.S.
population, it represents 54% of the moviegoing audience. Studies of consumer responsiveness to in-theater ads are
inconclusive, delivering sometimes conflicting results. A 2003 Arbitron study found that over two thirds of
moviegoers don’t mind preshow ads, and 86% recall seeing on-screen ads. In contrast, a November 2004 InsightExpress study found that
53% of moviegoers over age 18 want exhibitors to stop showing commercials, while
27% say they go to the movies less than they used to because of preshow ads. A Roper study commissioned last year by theater owner Regal
Entertainment Group found that moviegoers remember advertising messages five to
six times better than TB viewers. Ads at Regal theaters had a 74% recall rate,
compared with 14% for network TV, according to the study. What is clear is that brands looking for alternative ways to
reach elusive consumers are embracing cinema advertising, and many are making
the effort to create tailored ads or branded entertainment that reach well
beyond a typical 30- or 60-second TV spot (see box below).
The category’s growth is also reflected in the recent formation of National CineMedia LLC, a joint venture of Regal Entertainment Group and AMC Entertainment. National CineMedia encompasses the advertising, marketing and promotion operations of Regal CineMedia (Regal’s media and new-business development arm) along with AMC’s in-theater ad agency, National Cinema Networks, reaching 11,200 screens. The new venture will take advantage of the digital advertising network already in place in 8,200 Regal and AMC theaters. The technology is also being added to National CineMedia affiliate Georgia Theater Company’s 267 screens, with more screens to come in the near future. Regal CineMedia has been running digital pre-show programming called The 2wenty in its theaters since 2003. National CineMedia rivals longtime in-cinema ad agency Screenvision, which has 14,600 screens via exhibitors that include Loews Cineplex Entertainment and Clearview Cinemas. Screenvision is moving ahead with its own plans to roll out a high-definition digital cinema advertising network at 5,000 Loews theaters in major cities over the next 24 months. The network will be used to air the Screenvision Digital Preshow, a mix of entertainment and advertising that has already started showing at Mann Theatres. Some brands are taking full advantage of a movie theater’s captive audience by extending their on-screen ads into theater lobbies and parking lots, with promotions ranging from handing out coupons and product samples to conducting brand-awareness campaigns using signage, contests and events, among other techniques. Ad agencies and in-house marketing departments at the chains work closely with clients to ascertain whether a given campaign should be national, regional or local; which individual markets might make the best targets; and how detailed a promotion should be. Working on such a case-by-case basis means the price tag for a given promotion can range from $20,000 to more than $1 million. As with any form of entertainment marketing, measuring the success of a promotion is difficult to pinpoint and depends on a number of variables. For some, sales are the main measurement tool. For example, Screenvision’s recent campaign with Sour Patch Kids candy involved the handing out of download cards which allowed users to go online and enter a contest for a free movie ticket. Screenvision reports that the brand’s concession sales increased by 40% during the campaign, although results on the number of sweepstakes entries were unavailable. Brand-awareness campaigns are, of course, more difficult to measure. Screenvision employs Theatrical Entertainment Services to track signage in theaters, conduct focus groups, and do other forms of market research. Cotton Inc. tested audience recall and likeability of the same spots in cinemas and on television. While we couldn’t reach them for firm results, National CineMedia says the brand has been back for several promotions. One particularly successful Screenvision branding promotion took place last October, when the F/X network promoted its new TV series "Rescue Me" via the opening of the film Ladder49 (both properties feature firefighters). In addition to national on-screen ads and "Rescue Me" signage on movie tickets, F/X show’s premiere episode to moviegoers in four markets. "It was all about creating buzz," says Eric Shiu of F/X Networks. "We made 8 million – 10 million impressions on the movie screens alone." Some exhibitors are developing promotional vehicles that lend themselves to brand tie-ins, such as Loews’ "Reel Moms" and National Amusements’ "Baby Pictures" series. Both offer moms and their newborns weekday showings of current pictures, and have attracted the likes of Playtex, Pampers and Gerber, Which are involved with samples, coupons and signage. Some tie-in proposals are too much even for the eager theaters. A shipping company petitioned one chain to intentionally delay the premiere of a big summer movie so that one of its drivers could show up with the "missing" reels and save the day. "Everyone needs to remain cognizant of the fact that our primary business is and must remain the showing of feature films," the chain’s executive says. Still, some seemingly wild ideas do work, as National CineMedia’s Cliff Marks found with Toyota’s promotion offering test drivers of its Scion in selected Regal parking lots. Toyota purchased a large block of movie tickets and offered a free movie to those who completed a test drive on a closed circuit in the lots. "It initially sounded like a headache in the making, with operational and insurance issues top of the bill," he says. However, Toyota was able to work out those issues, and the promotion "was executed perfectly," says Marks. Further details on the results were unavailable. Some brands are augmenting their film product placements with in-theater promotions. For example, for its product placement of a new cellphone in Warner Bros.’ "The Matrix," Samsung made a major in-cinema advertising purchase. While this may seem a natural extension, the studios often require their product placement partners to spend their advertising dollars outside the cinema as part of their licensing agreements. Some of what the exhibitors, consider to be the "more progressive" movie studios, including Sony and Universal, are more open than others to such promotions. Movie theaters are also experimenting with other types of events to create sponsorship and promotional opportunities for brand partners, such as simulcasting of live events, from concerts to baseball games. For example, Regal sold 20,000 tickets to a Prince concert simulcast last year. Another growth are is in venue sponsorships, traditionally the domain of concession brands. Loews, for example, has been increasing such partnerships, with American Express becoming its official credit card and Cingular its official wireless provider, among others. The exhibitor is also exploring the possibility of selling music in its lobbies.
|
