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THE TOP 10 INSIGHTS
From the Advertising Research
Foundation Conference on Entertainment Research Beverly
Hills, November 1-2, 2000
1.
The entertainment market is highly segmented.
David Sackman showed how Lieberman Research segmented the public based on
their attitudes toward movies. They came up with eight roughly equal size
groups ranging from "True Fans" that love everything and account
for 25% of the box office, to "Finicky Families" that might go
as a group but actually prefer to wait until they can rent the movie. They
only account for 6% of the tickets, and are the oldest, while "True
Fans" were the youngest group. Our own research (see Item 6)
confirmed the importance of age. 30% of respondents under 25 went to the
movies regularly, while for those 50 and over the figure was only 8%.
McCann researchers described "Entechnos", those who use
entertainment as a tool to feel connected. Linda Greenberg of Sony Music
reported the market for music is leveling out in terms of age. People aged
35+ account for 44% of all music purchases last year, up from only 29% in
1990. Video games are tricky. Greg Durkin said 40% of all households have
them, but almost half of the teens would ask someone to buy one for them,
rather than buy one themselves.
2. Urban trend setters now drive change and
race is the key. The melting pot model, where society tends to
become more homogenous, has been replaced by the salad bowl model where
each element remains distinct. Every race feels it is important to
identify with their own culture. They embrace diversity. African-Americans
and Hispanics feel that story is not being told by the entertainment
industry. UPN’s Monday night "black ghetto" lacks the
diversity needed for success. Nickelodeon has it. The findings are from
the conference’s most talked about survey presented by Corey Fields and
Kendra Hatcher of BlackSheep. The survey of 1022 individuals was conducted
where they judged the trendsetters to be: in bars, shows and restaurants.
It raised lots of the same questions of validity and projectability as the
Flamingo research on leading edge youth in England reported just a month
ago at the ARF’s New York conference.
3. Disney is the gold standard for family
entertainment. Nickelodeon Researcher Bruce Friend said this in
describing Nick Films efforts to build a similar brand image for their
ventures into movie production. Their first movies featured the same kid
humor as their TV shows. Research showed kids loved them, but they didn’t
hold parents, and that was a mistake. They switched their objective to
broader and edgier subject matter that still did not betray parent’s
expectations. They spent more on marketing one movie than they did on
their TV channel in a year – up to $60 million. They ended up with their
first film that grossed over $100 million, The Rug Rats Movie. The failure
rate on new movies and new TV shows is 70% to 80%, but Friend said
Nickelodeon is at a point where only one in ten of their shows fail.
4. Major networks and studios are not
"brands". Conference Chairman Bob Levin, President of
Worldwide Marketing for Sony Pictures Entertainment said, unlike Disney or
Nickelodeon, their product is not consistent enough to enable fulfillment
of a "brand promise" or build a significant level of customer
loyalty. Cable channels, movies and record labels were considered to be
more likely to have the characteristics necessary for successful branding.
Some felt the network’s news and sports departments had more of a
potential for meaningful "branding" than the networks
themselves. During the Q&A a cogent question was posed. With failure
rates running up to 90%, why would a network or studio WANT to establish
itself as a "brand"?
5. Websites have become important in marketing
movies. Dan Rosen, Senior Vice President of Warner Bros, said they
now have 7-8 people doing nothing but building web sites. They are
budgeting $500,000 per movie for each of them. With the number of new
movies up from 200 to 400 per year, promotion is critical. 99% of what
happens with a movie depends on what happens opening day, and that is
where web marketing can help. They are running banner ads on 40 sites to
get people to the movie site. For "Red Planet" they put up the
site February 17 for a movie that starts November 15. Rosen said they have
also become avid believers in using the web to conduct market research.
6. Recognition-based tracking reveals Super
Bowl problems for movies. In a joint paper with Dan Rosen, Senior
VP at Warner Bros., I presented our syndicated results from nine years of
testing Super Bowl commercials to show what worked and what didn’t,
advertising movies on the Super Bowl. It started off with two memorable
lines from the Super Bowl movie commercial that our recognition-based post
testing showed reached and affected more people than any other. Tom Cruise
shouted "All I want is the truth!" Jack Nicholson shouted back
"You can’t handle the truth!" It was used to set the stage for
two basic findings that have not been very popular. Spending a lot to keep
a movie commercial on the air during the weeks after the game is a
mistake. The number reached and affected per million dollars spent drops
like a rock after the first two million. Dan Rosen stepped in to explain
why it happens. Promoting the opening of a movie is so important studios
don’t have a choice. They have to do everything they can. Cost
efficiency is not a prime consideration. The second unpleasant finding was
the number of movie commercials that had so many explosions, special
effects, and short choppy scenes that many respondents found them
confusing and pointless, rather than impressive. Still, emotion was shown
to be the main driving force: both humor and empathy. So, we were able to
sooth the troops a bit with a showing of the funniest movie commercials on
the Super Bowl. They were classics.
7. The "try anything, see what
works" internet is finally settling down – somewhat. This
comment emerged from Harry Hiner’s work to understand the motives for
online shopping. He found they were many and diverse. They ranged from
being able to do it in secret, to saving money, staying at home, enjoying
automation and even a feeling of being connected to a world wide
community.
8. 40% response rate achieved in 15 minutes.
Ellen Veccia of Knowledge Networks described how they did this for the
last episode of "Survivor". They made it possible for the
follow-up show that came on immediately afterward to answer such critical
questions as "Did America agree the right person survived?" They
selected a representative sample from the online panel they have recruited
from both the online and offline segments of the public by giving all a
WebTV. They notified them of the special event by email, offered them a
special $2 incentive, and asked them to hook up 15 minutes ahead of time.
When they did, their TV automatically changed to the channel they wanted
them to watch, and changed back to the questionnaire when it ended.
9. Hollywood researchers are preoccupied with
the promotion of "Blair Witch". It sounded like their
managements had grilled every one of them asking if this low budget film
could be so successful, why were they spending tens of millions promoting
high budget films? They all had answers. The most common was that it may
have been a low budget production, but as soon as it started to catch on
it became a high budget promotion. $30 million was spent after it opened.
10. $40 million a year is spent pretesting
movie commercials – but apparently not with ASI. That was
inadvertently indicated by a question from Gerald Lukeman, long time
Chairman of ASI before its merger with IPSOS. Our BRC presentation had
shown there was enormous variation in the number that had actually been
reached and affected by movie commercials after they were all aired on the
same program – the Super Bowl. Dan Rosen of Warner Bros. had cited these
differences, and the risk of bombing out on this most expensive of all
media buys, in describing his concerns about Super Bowl advertising.
Lukeman asked why isn’t there any pretesting? Several jumped in to say
there is lots of it, and offered estimates of the amount. That struck some
as sad because decades ago ASI was a pioneer in entertainment research. We
all used its Preview Theatre on Sunset Boulevard featuring state of the
art GSR gloves and like-dislike joy sticks for measuring audience
reactions to commercials, pilots and feature films. Dan Rosen, ARF
President Jim Spaeth, and untold others are ASI alumni.
These are only highlights of things that caught my
interest. For more complete details check the ARF website at www.theARF.org
for the availability of papers, or call the ARF at (212) 751-5656.
Don Bruzzone, November 2000
Bruzzone Research Company ·
2515 Santa Clara Avenue ·
Alameda, CA 94501- 4692 · (510) 523-5505
www.Bruzzone-Research.com
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