Movies success brings in marketers
Record attendance at movies is fueling heavy interest from marketers. Last year, admissions at theaters in the U.S. rose almost 5% to 1.5 billion, according to the National Association of Theatre Owners. And this year attendance is up roughly 20% compared to this time last year.
Movie theaters are routinely used for advertising in Europe, where on-screen ads have been around for decades. In the U.S., however, on-screen commercials are relatively new. Last year, U.S. movie theaters brought in between $200 million and $300 million in on-screen ad revenue, according to industry estimates. By contrast, marketers spent about $19.4 billion on network TV.
Lobby-marketing tactics began several years ago, but in the beginning were mostly used by local businesses. Blue-chip marketers began to notice the medium in the late 1990's after Calvin Klein made headlines by placing ads on popcorn bags.
Thursday, retail powerhouse Target Corp. is supporting its new line of back-to-college supplies with branded popcorn bags at 104 theaters in 10 major cities, including Philadelphia and Dallas. The bags feature a woman snuggled under her colorful striped Target blanket. (Target's red bull's-eye logo sits in the middle of the bag.)
Popcorn-bags ads are bought for set time periods, and prices vary seasonally. A national buy for a medium bag for four weeks in June would have a cost-per-thousand of about $118. The price is steep, considering that advertisers typically pay about $20 to $30 per thousand viewers for ads on national TV shows aimed at 18-to-34-year-olds. Still, Steven Kalb, a media buyer for Interpublic Group's Mullen, says the cost may be worth it because the ads target a very specific audience.